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Forums - Sales Discussion - Shouldn't Activision Blizzard be making more money?

bugrimmar on 06 November 2010

I mean.. WoW alone has like 12 million players.. on the average, let's say they're paying 13 dollars a month or something. That alone amounts to 156 million dollars per month.. let's say that they're spending 50 million (a very high estimate) a month on server maintenance, development of new content, etc.. they should still have 100 million pure profit from that game alone per month, and the quarter should net them something like 400 million. But they only made 51 million for the quarter.. that means they lost on everything else they made? How can that be, when Starcraft 2 released?

On that note, why is Blizzard even hanging with Activision? I'm sure they have more than enough capital to buy themselves out.. or do I not know what I'm talking about?

p.s. Blizzard will never get a cent from me again until they split with Activision. Screw!



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Scoobes on 06 November 2010

It is pretty shocking when Blizzard is a virtual money making machine that Activision manage to bleed them so as a whole they barely make any profit. This is true even in the quater where Modern Warfare 2 was released, which is completely ridiculous.




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Funtime on 06 November 2010

Seems a little odd to me as well unless they are spending like a billion dollars a year in R&D.



FaRmLaNd on 06 November 2010

Does wow make as much money from is Asian players as it does from its western? Aren't like 5 million of the wow players in China?



Legend11 on 06 November 2010

Thay have to pay taxes.  They have partners in many countries that also take a cut of the profits.  The average isn't $13 per month considering parts of the World pay less as FaRmLaNd pointed out.  There are probably hundreds of places where they're losing money (credit card processing fees, PayPal fees, etc).



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daveJ on 06 November 2010

Does wow make as much money from is Asian players as it does from its western? Aren't like 5 million of the wow players in China?
This is correct, most players of WOW are in china etc where they pay far less than 13dollars a month.

But I agree activision dont seem to have made much profit in the last quarter, I have a solution though, give Kotich a rise



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Mr Puggsly on 06 November 2010

I've wondered the same thing about MS. You'd think they would be making a lot more on Xbox Live a lone.

Does MS and Activion release information about money they've made on their subscription services?



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darkknightkryta on 07 November 2010

I wouldn't be surprised if Activision is bleeding Blizzard dry, it costs a lot of money to make 5 guitar heroes a year, not to mention everything else they spam.  Though I've noticed all the big publishers on this side of the hemisphere have very bad management.



Mr Puggsly on 07 November 2010
FaRmLaNd said:

Does wow make as much money from is Asian players as it does from its western? Aren't like 5 million of the wow players in China?

China players pay by the hour. Having read around the web they only pay pennies an hour.

The link below says they only pay $0.06 an hour. So that's about 16 hours for a $1. They would have to play 240 hours a month to pay $15 ($15 is what Americans pay a month). Hence, China probably only accounts for a small portion of WoW profits.

http://www.warcraftgoldstore.com/articles/Subscription-Levels.aspx



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Severance on 07 November 2010

they probably spent millions on marketing.



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