Principate
Saint Titanfall
Thanks for the info.
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Activision spending $500 million on developing and marketing Destiny
- Thread starter ComputerMKII
- Start date
Thanks for the info.
GTA5 included marketing. We know that just Destiny's development cost is over $140 million.
Going by the general rule of thumb in regards to marketing costs(unless Rockstar skimped on marketing which I doubt), Destiny's development is going to be more expensive than GTA5. Now as to the reason, ask Bungie and Rockstar for their accounting sheets.
Nydius
Member
After looking at the early contract bullet points posted here a some pages back, I'm inclined to agree. The model is almost a direct copy of Warcraft except where Blizzard would release "free" (quotations due to the subscription nature of the game) major content packs, those content packs will be paid "expansions" for Destiny. Where Blizzard would charge for a new "expansion", Activision will charge full price for a new iteration of Destiny (which will undoubtedly be built on the existing framework of the previous game).
Although not an MMO, it sure does seem (if those early contract points are accurate) that they're trying to apply the Warcraft content delivery model. I hope for Bungie's sake that it works. If Destiny comes out and ends up being lackluster, this entire house of cards may collapse.
n00bsauce87
Member
Okay since the other guy stopped posting about his opinion, we can still do this. I figured, why be a bad sport. 15 mil by the end of the holiday season (March 2015)? Sure let's do it. To be honest I think I might lose, not by much, but that's a big number to hit. If you are still up for it that is.
Just to warn you, even COD4 didn't hit that number and especially not in the first year.
Oh man you sure told me! I forgot how Destiny was high art compared to Halo.
gundamkyoukai
Member
If Destiny cost more to make game wise that going to be some funny accounting .
GTA5 also has whole bunch of license stuff they had to pay for that Destiny won't have to spend money on .
Either way i guess it's just some Hollywood accounting happening .
Mister Wilhelm
Member
From the videos I've seen...$500 million?????
Principate
Saint Titanfall
Paul McCartney writing your soundtrack does come for free you know!
Interficium
Banned
Seriously? Calling for peoples jobs because you weren't catered to?
The only thing more hyperbolic than Kotick are some of the posts in this thread.
sixteen-bit
Member
Bit of perspective: Sony spent $500 Million developing the first Playstation.
Principate
Saint Titanfall
Inflation is bitch ain't it?
Freeza Under The Shower
Member
something with a landfill in a desert.
n00bsauce87
Member
Well what was the highest number a game hit in the holiday season in sales? Would you go (That number - 5 million). I don't expect to be a record breaking launch. You gotta give me at least reasonable odds to win even if less than 50%
bigboss370
Member
I cannot wait for the E3 Destiny blowout.
cripterion
Member
Funny thing is with all that money spent on promo, so far they've done a pretty crappy job at getting us hyped for the game.
Releasing the beta earlier and having a good word of mouth would have saved them quite a bit of cash.
Releasing the beta earlier and having a good word of mouth would have saved them quite a bit of cash.
Arrogant Bastard
Banned
This is a long term investment, one that they plan on investing in for the entire cycle. It isn't like they are dropping $500 million on one game.
That1BlackGuy
Member
As much as I am looking forward to Destiny, part of me hopes that the game doesn't flop (at least in terms of perception). Titanfall and Destiny are (or were supposed to be) the two definitive releases this year and it probably wouldn't look good if both of them came out lackluster in terms of commercial performance. Surprising in a (good) way that EA and Activision are betting big on New IPs, even if they don't pan out in the end (which is the unfortunate part for developers.) A strong E3 showing + positive beta feeback will definitely put them in the drivers seat though.
This is what the retail sales of games software look like in NDP March for the last few years. Obviously does not include digital, but still:
So not a pretty picture. Sales have halved in a few years.
jhmtehgamr20xx
Banned
Fine then, it's a deal. The game comes out in September, and I was thinking of that up to January 1, 2015 but if there's an official holiday cut-off date past that so be it.
This one's in the bag. Now I'm just thinking of a silly look for 'ya....
Wait, what?
PanicFreak
Member
I don't think Destiny will bomb but the first game probably won't do the type of numbers Activision will want of the series. I think that they will probably look at the cost of Destiny as an investment but if the series isn't doing close to a billion a year in year three, they will not be happy. I wonder how low the revenue bar is for Activision to continue supporting Bungie after the second game comes out..
Plenty. Mario Kart Wii for example. But it is a very high target for a new IP.
clutch.as.it.gets.
Member
This is what the retail sales of games software look like in NDP March for the last few years. Obviously does not include digital, but still:
So not a pretty picture. Sales have halved in a few years.
God damn at that chart. Not really surprising though when most developers keep releasing the same mediocre products year after year.
This is what the retail sales of games software look like in NDP March for the last few years. Obviously does not include digital, but still:
So not a pretty picture. Sales have halved in a few years.
Of course, digital revenue is the exact opposite of that chart. Mainly due to Steam and the PC platform in general, (MMOs, F2P, etc), but console players are beginning to catch on as well.
SmoothRunningGun
Member
I'll buy a copy.
Such a huge investment for a game that is still failing to really stand out or capture any genuine excitement out of the masses. They've done a piss poor job of marketing this game and I dislike the amount of pressure placed on Bungie for this to be "the next big thing". Just make a good game dammit.
This is what the retail sales of games software look like in NDP March for the last few years. Obviously does not include digital, but still:
So not a pretty picture. Sales have halved in a few years.
And PC is booming and growing each year over year.
Absolutely. Console Digital alone does not do too much to offset this decline, but the resurgent PC (Steam, League of Legends etc.) and mobile growth would make the overall games market revenue chart look quite different. Retail is not the whole market, but it is the core of console sales (at least for now).
Still, it shows the challenge ahead of Destiny -the trend is against them.
family_guy
Member
Id hate to be in that financial report meeting next year if things don't quite work out the way they planned.
Forsaken82
Member
All they need to do is
"From the studios that brought you Call of Duty and Halo"
When posters and TV Spots start going out with that tagline, this game will gain traction.
With numbers like this for both marketing and infrastructure (ignoring all the xb1 benefits in this regard), while just taking pause for the marketing aspect. It almost seems like it would have been cheaper to send free copies of the game to 30 million people with a $10 bill attached and a nicely written card stating "please play our game". Then step back and watch the viral spread of the game and what it is occur.
I have a hard time wrapping my head around how marketing costs inflate game budgets that much.
I have a hard time wrapping my head around how marketing costs inflate game budgets that much.
So the cost to develop and market all those sequels and expansion is free?
n00bsauce87
Member
Well this is the confusing part now. You took too long to speak up so I took this avatar bet to someone else. I can't choose you both.
What a predicament.
I am very much looking forward to Destiny but it really needs to be put into context.
The game is a sci-fi shooter, it categorically will not appeal to the same wide demographic as GTA or COD. The only comparable is Halo and COD outsells that on the same platform.
16m to just break even means unless it does COD or GTA numbers it will be a bad return on the investment. To be a massive success on that scale you need a sports license, otherwise it's a total unknown, it's capturing lightning in a bottle.
Good luck to them, I think they'll have done great to do 20m.
The game is a sci-fi shooter, it categorically will not appeal to the same wide demographic as GTA or COD. The only comparable is Halo and COD outsells that on the same platform.
16m to just break even means unless it does COD or GTA numbers it will be a bad return on the investment. To be a massive success on that scale you need a sports license, otherwise it's a total unknown, it's capturing lightning in a bottle.
Good luck to them, I think they'll have done great to do 20m.
Since retail (what that chart tracks) snubbed them no less. Retail told PC gaming to get out because pirates, so PC gaming free of those obligations turned into the digital distro mecca with aggressive pricing models. Now PC gaming is surging and retail is dying.
About to see the same thing happen in the console space if you ask me. Retail keeps pushing the AAA $60 games, they keep pushing pre-orders and exclusive pre-order content, they keep pushing POS limited editions that give trinkets in exchange for less money to buy more games for those gamers most likely to pour all that money back into the industry. In short, retail is one of a handful of point sources for the industry's major issues and as they decline in importance that shit pipe will get valved off and the industry will be all the better for it.
He can go first I guess.
EatinOlives
Member
I'm waiting for a PC version. But if it underperforms based on the budget (and I really don't see how it couldn't, honestly), I can see this going both ways:
1. Activision pulls the plug in a kneejerk after they realize how much money they sunk on Destiny post launch and we never see a PC version.
2. They scramble to make a PC version for extra cash.
Hopefully 2 happens.
EDIT: I should also mention I'm looking forward to it but GOD no it doesn't look like a $500 million game at all...
1. Activision pulls the plug in a kneejerk after they realize how much money they sunk on Destiny post launch and we never see a PC version.
2. They scramble to make a PC version for extra cash.
Hopefully 2 happens.
EDIT: I should also mention I'm looking forward to it but GOD no it doesn't look like a $500 million game at all...
They'll cost far less once Destiny's engine is in place and it's patching paid for via expansions.
Also, the marketing costs incurred for the first should surely be amortized throughout the life of the franchise. Activision is hitting the marketing hard for iteration #1 knowing that if it delivers they'll be able to massively cut back on advertising and sell 2-X much more heavily on word of mouth.
Better yet for Activision/Bungie, they're getting Destiny out at the tail end of year one for the new consoles, in a generation that will last at least another 5, probably more like 6 or 7, years. They could easily get another three installments, maybe even 4, out on this same family of hardware using largely similar technical resources.
Its a lot of money, but I'm sure Activision sees the writing on the wall for WoW and CoD. Those franchises are running on fumes and now Activision needs it's next headliner. Bungie and Destiny are an ideal choice.
mcz117chief
Member
Tortanic invested 500 million and look where it got them. More investment does not always mean more money, especially if your marketing or game (or both) is bad.
Destiny is also not a game that will be dropped after a year. I am sure they will provide full support for it for 5-6 years minimum.
Miles Quaritch
Member
This is what I'm really interested to know. Just how much money did Sony pay for the co-marketing rights and the timed exclusive DLC?
Can't have been cheap...