Blizzard ($)

[Nabraham]

Ail said:

Nabraham said:

Ail said:
Average worldwide price of a Wow subscription is 10$.

Price of a subscription is a lot lower in China and on top of that Blizzard uses a third party to host the servers and provide support, that third party pays them a fee out of the money it collects...

So worldwide revenue is more around 110 million$/month.

One thing not to forget is that there are huge costs associated with those revenue ( except the Chinese ones due to third party taking on the costs).

In the end I would be surprised if the profit per player was above 4$, it's probably less....

Profit of course peaks when expansion are released though...

 

 

By your logic of them only making $4 per player you saying that it costs them $70 million a month to run WoW in costs (you said it costs on average $10 per player and there are 11 million of them). No way is this possible, just last month blizzard stated that they have spent $200 million on total costs for WoW since the game launched.

 

 

 

I would like to see a link stating that.

Just a few month ago Activision CEO estimated Blizzard has spent close to 1 Billion on Wow so far, which I believe and that did not include the operation costs which are actually the biggest part of the monthly costs.

Blizzard has a team of over 500 full time customer support people ( their support is actually bigger than their development team), they run close to 200 server clusters ( each server is actually several machines) and must have HUGE network bills...

Besides the revenue Vivendi game was making before the aquisition or the revenue projection for Activision-Blizzard this year doesn't support Wow making a bigger profit/player.

 

Vivendi games was hauling 400-500 million of profit the year before the merge.

Vivendi games was mostly Blizzard + Sierra.

I don't belive Sierra was loosing 100 millions of dollar a year so if you keep Sierra neutral you have Blizzard hauling 400-500 million a year which is around 40 million a month.

At the time they had less subscribers ( 9-10 millions) so you get around 4$ of profit per subscriber...

If you look at the estimation for Activision-Blizzard profit this year and compare them to what Activision made the year before the aquisition you get roughly the same kind of number ( little bit lower as Blizzard is spending more and more on SC2 and D3 as their release get closer so those development are absorbing a little of WoW profits)...

 

LoL at the comment asking if any other company made as much profit....

In 2007 Exxon Mobil made 1287$ of profit per second for a total of 40.6 billion $....

They made as much profit as Blizzard makes in a full year in less than 4 days....

 

This was a few months back, i just googled it (I originally read it on joystiq):

 

http://www.firingsquad.com/news/newsarticle.asp?searchid=20850