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Realtime Worlds grabs $50 million

Filed under: Business models, MMO industry, New titles, Virtual worlds, All Points Bulletin, Crime


Techcrunch is reporting that developers Realtime Worlds (makers of last year's Crackdown, which could be an MMO, and the upcoming All Points Bulletin, which we heard lots about at GDC) have picked up a whopping $50 million in funding from a round of investment capital, including lots of it from Maverick Capital.

So good news for APB fans -- of course, it's just a fraction of that billion dollars that Activision Blizzard CEO Bobby Kotick claims anyone will need to take on World of Warcraft, but $50 million buys a lot of artists, programmers, and servers, all things that a great MMO needs for a strong launch. APB is still in the development stages of course -- we've heard that it'll drop this year, though at this point (and with the extra cash going into a little extra development), we're probably looking at a spring 2009 release.

Investment of $1 billion+ wouldn't dethrone WoW, exec says

Filed under: World of Warcraft, Business models, MMO industry


We all know that World of Warcraft is the big daddy on the MMO block. Hell, with the amount of money Blizzard is raking in, World of Warcraft is the big daddy on the gaming block. And what's more, it's still growing. According a report, Activision CEO Bobby Kotick stated in an investor meeting that his company had done extensive research on the MMO category, and came to the conclusion that even a game bolstered by an initial investment of $500 million to $1 billion would still probably have a hell of a time competing in the same space as the Blizzard juggernaut. This likely came as part of their research prior to the massive merger with Vivendi Universal late last year.

Kotick points to the relative failures of big companies like Microsoft in trying to develop a competitive product as proof in the pudding. Even companies with decades-long track records of extracting money from lose-lose situations don't stand to gain much from trying to directly compete in the same space. For his part, Kotick believes it's the ingenuity of the guys at Blizzard that is really the deciding factor. Since no amount of money is liable to recreate the success of Blizzard, they simply found the prospect of buying them out more amenable. If you're wondering why it seems like so many MMO development houses are scaling down their products to make them more niche oriented, this is why. Throwing money, even a billion dollars, into a competition with World of Warcraft is only likely to end in tears.

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