Activision stamps $500mil on Destiny, doubles cost of GTA V....

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Activision stamps $500mil on Destiny, doubles cost of GTA V....

Post by Killswitchmad on Tue 6 May 2014 - 12:56

Activision Blizzard Inc intends to spend $500 million developing and promoting "Destiny," potentially breaking industry records as it seeks to build the sci-fi role-playing videogame into its next multibillion-dollar franchise.

CEO Bobby Kotick revealed the number, which dwarfs Hollywood spending on some of its biggest firms, during the Milken conference in Los Angeles last week. A company spokesperson said on Monday the number was accurate but also included marketing, packaging, infrastructure support, royalties and other costs.

Activision, eyeing the flagging growth of its long-running "Call of Duty" action-shooter franchise, is eager to lay the foundation for its next multi-game blockbuster series.

Investors hope that "Destiny," scheduled for release on September 9 from Bungie, the same studio that created Microsoft's best-selling "Halo" franchise, could re-invigorate Activision's revenue, which slid 6 percent in 2013.

The company signed a 10-year contract with Bungie in 2010 that gives it worldwide distribution rights and significant control over the potential franchise's development.

"If you're making a $500 million bet you can't take that chance with someone else's IP," Activision CEO told the Milken conference. "The stakes for us are getting bigger."

"Destiny" is a cross between a traditional shooting game format and a role-playing game in which gamers play characters in a real-time online world. The title allows gamers to play "Guardians" who protect the last city standing on a post-apocalyptic Earth.

Analysts said $500 million would likely be a record spent on a single game - especially one without an established track record. To break even, Activision would have to sell about 15 million to 16 million units of a $60 game, analysts said.

"It's a head scratcher, said Sterne Agee analyst Arvind Bhatia. "For brand new IP, it's tough but it could post a big surprise."

Bhatia expects the game will sell 8 million units. "Grand Theft Auto V," which hit stores last September, was a runaway success with over 32.5 million units as of February this year. But it was the fifth installment of a critically acclaimed series that had become an indelible component of popular youth culture.


That's an awful lot of money and if you ask me I can't see the fame becoming profitable for awhile if at all....
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Re: Activision stamps $500mil on Destiny, doubles cost of GTA V....

Post by HomerRamone2084 on Tue 6 May 2014 - 18:36

If it doesnt sell bungie are fucked Surprised
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Re: Activision stamps $500mil on Destiny, doubles cost of GTA V....

Post by N1NJA FWG on Tue 6 May 2014 - 20:32

^ ^ this. I can't see Activision wedging up this much money though without feeling confident the quality is there to see a return in time.

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Re: Activision stamps $500mil on Destiny, doubles cost of GTA V....

Post by HomerRamone2084 on Wed 7 May 2014 - 10:10

I hear what your saying - but they plough millions into COD every year.
I realise they get it back - but doesnt stop COD sucking just a little more each year..

Anyway point is activision are almost the new EA - buying companies, game doesnt meet requirements dump company.. I propse a minutes silence for Bizarre !
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