Massively^™

Activision CEO Bobby Kotick told Gamasutra that his company explored avenues by which it might enter the MMO industry, but decided that the only sure way to succeed was to join forces with Blizzard.

That reality was a driving force behind the merger. "We kept looking at it, and realizing that even if we put hundreds of millions of dollars of capital towards it, and had the very best intellectual property, we still would very likely be unsuccessful," he said. "So the merger was really our mechanism to get access to Blizzard's talent, Blizzard's capability, their infrastructure."

Kotick has already said in the past that taking on World of Warcraft directly would be next-to-impossible even with virtually unlimited coffers. But others, such as EA Mythic's Mark jacobs, believe there's room for more than one 800 pound gorilla in the market. Perhaps the problem isn't so much competition as it is the fact that the production values bar has been set so high that MMOs have become too risky. They cost more to produce than most other games, and their success rate is uninspiring.

In a discussion with investors yesterday, Actvision CEO Bobby Kotick mentioned how the soon-to-be-formalized merger with Vivendi Universal would give the new company the ability to leverage their properties in ways that were never before possible. Specifically, he mentioned how Activision could conceivably tap into the technical and creative expertise of Blizzard in developing the Call of Duty franchise into an MMO. This follows on the heels of another recent comment he made in public recently about Activision's research into the MMO space, and their perception of the considerably monetary barriers to entry.

While nothing about Kotick's comments seemed to indicate that a Call of Duty MMO was actually in development, it's still an interesting prospect to think about. Call of Duty 4, which is currently the most actively played game on Xbox Live, actually contains a number of gameplay elements reminiscent of an online RPG. There are classes, various skills and challenges to grind, and a persistent experience gain. It really wouldn't be much of a stretch to imagine Call of Duty in an MMO context, or at the very least, containing even more elements from the genre to grab players and keep them coming back. But the very prospect of a collaboration between Infinity Ward and Blizzard is almost simply too much for my geek brain to handle, so for my sanity I'm just going to have to assume this was all executive-speak, and such a game will never happen.

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.