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Addiction is a lucrative business for Blizzard

Ever since the release of World of Warcraft (WoW), Blizzard pretty much set the standard on what a major massively multiplayer online game (MMOG) should be like. A massive world, an unheard of amount of items and a game play style that makes things fun for just about every MMO player out there. Then on top of all the addictive elements, charge $15 a month per account. Sounds like a recipe for success right? It is.

Unfortunately, Blizzard sat on its behind after reaching a few record breaking numbers in terms of total account signups to WoW. Why do I say this? Because despite the much anticipated release of the Burning Crusades expansion, not much was introduced into the game considering the large amount of resources that flows into Blizzard HQ per month. Considering that WoW is now exceeding a global account list of 8 million players, there's definitely gold in them subscriptions.

What exactly is Blizzard doing with all that cash? Let's take a look at Burning Crusades. An extremely high percentage of mob models in this expansion was ripped directly from the original game. Colors were changed and names were edited, but overall, only a small handful of new models were added. Take into consideration that much of the new popular features of the game were added outside of the expansion and we begin to see that there's something wrong with the picture here.

Blizzard also delayed the Burning Crusades expansion for a long time. Those who paid for the expansion were also asked to pay a retail price that matched the original game when it was released -- that is an obscenely expensive amount considering that the original game is much more grander in scale. Burning Crusades appears like a collage of textures and models taken from the original game than a true expansion.

Besides all of the above, Blizzard is still not addressing some of the strange oddities in the game. Hunter pets that swim deeper and faster than a druid in aquatic form -- I don't know about Blizzard but I certainly have never seen a cat out-swim a seal, infantry that can run faster than the fastest ground mount in the game. I've seen a guard chase down a player on an epic horse mount. Blizzard also recently announced that the druid class will receive an epic flight form -- instantly castable but will cost 5000 gold to learn the epic riding skill. Wait a minute, you need a "riding skill" to turn into a bird and fly away? What exactly are we riding here?

Don't get me started on class balance even, there's no such thing -- gear stats dominate this game. Blizzard attempts to adjust class features on almost a monthly basis and just makes a mess of everything. Fixing one problem reveals another. The problem here lies in the dynamics of each class and their abilities. Because of the large amount of complaints that flow on the Blizzard forums, the company is subject to constantly changing abilities around. In essence, the whole ecosystem of classes is adversely affected by small adjustments as well as large ones.

So take one part large monthly income from 8 million paying subscribers and one part large injection of cash from the release of Burning Crusades and what you get is a missing picture and lots of questions. Make no mistake about Blizzard though, it is in the business of making a profit, not putting its players first. It already achieved what it set out to do with the initial release of WoW.


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I disagree...
By OblivionMage on 4/20/2007 4:27:49 PM , Rating: 2
This blog honestly seems like more of a rant then a constructive and interesting post. First off, you stated that they charge 15$'s a month to play, and you made that sound like a ridiculous amount. A great deal of other MMORPG's (D&D Online to name one) have this exact same billing method, if its too expensive, then don't play. Perhaps GuildWars is an exception, but I personally hated that game. It felt more like single player then an actual MMO, and this was before I bought WoW.

The druid 'riding' skill was perhaps worded incorrectly, but does that truly make up for your complaint? All of the other skills related to mounts and/or flying mounts are called 'riding' and Blizzard has been using that word as more of a category then as something to actually describe the skill. The pets swimming as fast as a druid in aquatic form is simply because of the +30% Talent that hunters can get. And they have to be able to swim fast in order to keep up with hunters, although I agree it is a bit stupid. I don't really care about the guard thing, if they weren't as fast, and faster at that rate, then players on epic mounts, players could just run around enemy cities at will.

Blizzard added a whole new continent, then new levels for each class, with their respective talents, as well as items and instances to accommodate these higher level players. They added two completely new races, and their capital cities, as well as starting areas and quests. If you don't think that they added enough to make up for the price, then by all means don't get it. Comparing the expansion to the actual game, in terms of price to content, is not fair.
If you compare BC with some other games that are retailed at similar prices (I live in Canada so 49.99$ was the price of BC) you will realize that most games don't even have near the amount of content that BC adds, although I do think that BC should have been 19.99$ instead of 49.99$, to match the actual game.

Class balance is a problem, I would agree with that, but it is not any more (in my opinion) then most other MMORPG's.
As for addiction, I think it is more the style of Blizzards art that is particularity appealing, but I don't think that they are purposely making it addictive. Neither do I think that I am addicted to it. I bought the game on the 22nd of December, and I have a level 33, a level 13 and a level 7. I have played 4 days total on my level 33, that is in a almost four month period. This means one day of played time a month, that is 7 hours (roughly) a week of playing. Which is not overly much for me, as I am on the computer for a very large amount of time every day, and this includes weekends.
I only really play WoW when friends are on, and we can voice -chat with vent, otherwise it can get very boring, however I still consider myself to be getting my money's worth.

This is just me being bored, so please, criticize away...




RE: I disagree...
By Tuan Nguyen on 4/20/2007 4:38:56 PM , Rating: 4
Well you're certainly welcome to disagree. I suspect that not everyone will agree.

I did not mention that $15 was a ridiculous amount. Correct me if I'm wrong. What I pointed out was ($15 x 8 million) + ($50 expansion x 3 million) = not really much improvement as far as funding for development goes - and that, is ridiculous. Think about this for a second, how much money is put towards making a typical hit game and you get my drift.

As far as your mention about the guards thing allowing players to run around at will is simply not true. Spawn more guards, and players can already be struck and dismounted by being dazed. So there are plenty of mechanisms to trap a player down. No human should be able to out run a horse period.

I also live in Canada, and as for the cost of the expansion, you're right, it should have been $19.99, or even $29.99 - but not the cost of the original game. Compare the two. Firstly, you have all that influx of money from the original game and the subscriptions, a lot of time and resources. You should be able to develop an expansion that has more than repetitive original game content and renamed models -- it's all the same mostly, save for the environments.

As far as class balance goes, you missed my point actually. Yes, class balance is a problem but what Blizzard is doing with it is the bigger of the two problems. Blizzard constantly modifies (nerfs and buffs) classes, almost as if it has no idea where it stands and is playing with a grade 5 science kit to create odd concoctions.

If you consider yourself getting your money's worth, that's fine, there's no arguing with that. But when you talk about money and how much of it Blizzard is bringing in from WoW, there needs to be much higher expectations from a technical point of view.


RE: I disagree...
By Zurtex on 4/20/2007 5:10:38 PM , Rating: 1
I also have to disagree with you and agree with the poster above.

Do you have any idea of the difficulty involved in running an MMORPG? Do you honestly think they gain $15 per person in pure profit?

Before World of Warcraft, MMORPGs were always a difficult business in the west, while revenues may be high, profits tend to be non-existent. Blizzard did an amazing job of creating a large MMORPG, having an interesting story, putting an endless amount of quests in it while keep a consistent universe which has lots of humour in it. On top of that they do a really good job of maintaining the stability of it and keep a level of control in each of the realms, many other people may not think that, but I'm willing to bet they never seriously played MMORPGs before WoW.

My understanding is that World of Warcraft was built for patches, not for expansions. That 70% of the effort that has gone in to burning crusade is about making World of Warcraft a scalable universe, so they can now add more content in the same way without the headache of re-writing the inner workings of the game. On top of that, when the game was ready, but not polished off they made the decision to delay it after the Christmas period when they would have gained the most sales and instead wait until Burning Crusade was just right to release. They do an amazing job of balancing compared to other MMORPGs, they do a really good job of creating a lively universe with always new stuff to discover. Burning Crusade is built on an incredibly old game engine and yet it still managed to look even a bit more pretty than most of the older parts of World of Warcraft.

You talk about their revenue as though it were their profit. The amount of servers, back-up servers, GMs, technical staff and the like they need to run or pay for 24 hour service will be crazy. MMORPGs have never had a very good habit of making lots of money, it takes lots of development to make them and once they're up, it takes lots of continuous maintenance.

Pre - World of Warcraft, if a class was stupidly broken in an MMORPG, it's likely that it would stay that way forever. World of Warcraft has changed the face of MMORPGing.

And yeah, if people don't feel like they want to pay, there's nothing making them. At the end of the day all it's meant to be is fun.

P.S, I'm not a WoW player, I was invited to the original closed BETA but was about to start Uni in the summer. I've had a couple of goes since but decided it's not massively for me, doesn't mean I don't respect what it's done to the MMORPG scene (set a very high bar).


RE: I disagree...
By Tuan Nguyen on 4/20/2007 5:36:50 PM , Rating: 4
Again, I think people need to read a bit more carefully about what I wrote in the original article. I did not say that $15/month went to pure profit. In fact, I indicated throughout the article that much of that money went towards the development of the Burning Crusades expansion, as it would appear to be on the surface. However, when you take a close and deep look at the expansion, you realize that almost none of that cash flow went towards the expansion. Here's why:

Blizzard charged $50 for the expansion. There were about 2.5 million initial purchases of the Burning Crusades. I think that's more than enough to cover the cost don't you think? :)

So, where does the subscription cash go towards? Ah, maintenance. If 8 million x $15/month goes towards maintenance, there should not be as many problems as there are currently. Using that cash, WoW should never have to be halted every Tuesday for several hours. Imagine if eBay, or Yahoo, or Google, came down every Tuesday for several hours at a time for maintenance. $12 million dollars a month towards maintenance? :) I don't think so.

Again, cost of developing BC was already covered in the sale of the expansion itself. $50 x 2.5 million initial purchasers, and that does not even include all the trickle purchases that occurred thereafter.


RE: I disagree...
By OblivionMage on 4/20/2007 7:06:31 PM , Rating: 2
The cost to rent a server is 200$'s a week (Or so I have been told) directly from blizzard. Which is 800$'s a month, which is only 53 players, per server, to cover the direct costs. So I agree with Tuan that the 15$ a month is mysteriously disappearing...If you look on their website, under the "employment" area, some of the jobs say "The team from Diablo 2 is looking for a ". This suggests that they are at least working on something. Hopefully another timeless classic! There have been so many rumors of Diablo 3, that I don't think it will happen, a new Starcraft will most likely be the case. Or a totally new game, maybe "World of Blizzard" where Starcraft, Diablo and Warcraft are all combined for ultimate MMO Domination!
I figure that if 8 million people are constantly subscribing, that is 120,000,000$'s a month. That is absolutely insane. I personally think that they are all on vacation in Hawaii...
Anyways, I did sorta misread/speedread your article Tuan, so I am sorry :(


RE: I disagree...
By Panurge on 4/20/2007 7:15:00 PM , Rating: 2
Actually, the costs are far higher than you are guessing at.

Sure, it may only cost $200 for a single server's rental a week, but each "server" in game is comprised of many of these individual machines.

Add to that the maintenance and electricity costs of running the servers, the cost jumps. Add to that the one cost that makes any server farm expensive, cooling, and the cost skyrockets in comparison to the paltry $200 a week.

On top of the servers themselves, there is bandwidth to pay for. Months of 8 million people accessing on a regular basis is a huge bandwidth cost.

Sure, I can't give any hard numbers for these, but the $15 a month per user does get heavily eaten up by costs compared to what most people believe.


RE: I disagree...
By darkblueslider on 4/21/2007 7:51:35 AM , Rating: 2
I paid £16 ($32USD)(N.B. that figure includes 17.5% VAT for my burning crusade in the UK.
On the Highstreet it was generally £25

How much of that money does blizzard actually get?
Taking away the physical cost of the media box etc etc.
it might be approximately $20-$25? (Assuming that it can be sold for $30 profitably)

Also $15x 8 million is incorrect. How many of those players are Chinese who pay 0.02c or thereabouts per hour?

But yes... regardless of the figures, Blizzard *does* make a lot of money. You do raise some Valid points. But in terms of being "ripped off" Surely your getting more content for your $15/month than you would with any other MMORPG player, regardless of what a meaningless value like "USD Spent in Development per subscriber" Results in.


RE: I disagree...
By Zurtex on 4/21/2007 10:05:15 AM , Rating: 1
You have to be kidding me?

Blizzard do a fantastic job at having almost no problems compared to almost every single MMORPG in existence.

I used to play one which had 100'000 active subscriptions, but they only had to maintain 2 servers. There would be times when the entire MMORPG would go down for a couple of days and there'd be nothing about it until it randomly popped up again, or occasionally the staff would say "Oh sorry, we were on holiday".

Things like that were even common for large gaming companies, I mean compare the problems that Phantasy Star Online by SEGA had compared to the problems World of Warcraft. WoW runs like a dream in comparison.

Again, if you think Blizzard directly get $50 from all 8 million consumers, you're extremely naive about the gaming industry. You do realise that retailers and publishers want to make a profit somewhere in that?

I'm willing to make a bet that google spend more than 12 million dollars a month on their world wide server maintenance and development.

You seem to have missed my point about where a lot of the time, effort and energy was spent in to BC, but never mind. You're very much coming across as one of these people who go on to MMORPG websites, complain endlessly about the service of the game and how it's not worth $x a month and still carry on paying. There's a reason why MMORPG companies don't listen to people like that, compared to people who have fairly decent constructive criticism about certain aspects of the game.


RE: I disagree...
By eman 7613 on 4/24/2007 2:53:14 PM , Rating: 2
Your an idiot, do you honestly think, that if there is a problem, throwing an extra million at it will solve it? Do you think upgrading their workforce from 100 or so to 300 will fix it? no, that will make things worse. You may not know enough about business to understand this, but throwing money into a problem makes things worse. Perfect example Vista, poored millions into development. Took 5 whole years to get them their product. Linux had most all of the features of vista (with the exception of dx10, but hey) by 2004 (ignoring 3d desktop, 2002, wow didn't Xp come out right before then?). And it cost 0$, with the effort of a few hundred people, while the vista development team is a few thousand.

Ask anyone who works upper management in a business, add people & money to a problem does not get it solved any sooner, but most probably later.

The fact that They have 8 million subscribers and is still growing is a testimant to how well of a job they have done, not how badly they are ripping off users. And guess what, you don't HAVE to pay 10 - 15 a month (b/c you can buy them cheaper in multiples) there are hundres of crack servers, were guess what. You can play WoW for free! Infact, some of them make it easier to level and get stuff, while others stay true to How WoW is played.


RE: I disagree...
By dandres87 on 4/21/07, Rating: 0
Its obvious for anybody outside the WOW hype
By thepinkpanther on 4/20/2007 8:34:09 PM , Rating: 2
Its really not that expensive for the servers. since its in a grand scale it can be done much cheaper than keeping few servers running.

5 million customers paying 15 dollars a month for how long....lol its insane. And now 3 million extra plus they had to pay almost full game price plus gets dragged into that drug theme....

Forget anything about diablo, starcraft etc. they are doomed.

There is no point in EVER making those games. Just continue on the mmorpg or what the hell they are called. They are so big cashcows that you gotta be insane just to think on working on games that in less than 1-2 months has been passed in revenue on a game like wow.

Wow 2 will likely come next. Then perhaps another mmorpg game will come. maybe a starcraft or a diablo mmorpg.
Sadly but true.




By OblivionMage on 4/20/2007 9:18:50 PM , Rating: 2
WoW2 is too obvious, they would call it, World of Warcraft, Revolution


By just4U on 4/21/2007 5:21:06 AM , Rating: 3
I find it highly unlikely that Blizzards next project is based around Warcraft. They have two other incredibly popular franchises with Starcraft and Diablo.

All of which were very lucrative for them. D2 stayed in the TOP 10 for god knows how long. They sold so many copies of that it's unbelievable.

If I had to hazzard a guess the next MMO from Blizzard will not come until they have released one of their franchise games (based around SC or Diablo) After that is complete they will most probably look at following up with a mmo.


By jtesoro on 4/24/2007 1:12:03 AM , Rating: 2
Before they release World of Warcraft Revolution, they'd probably do World of Warcraft Reloaded first.

Alternatively, they could name their releases this way:

World of Warcraft
World of Warcraft Returns
World of Warcraft Forever
World of Warcraft Begins

They'd probably skip World of Warcraft & Robin, even though it would have provided the most interesting twist in the series.


WoW
By cochy on 4/20/2007 4:11:02 PM , Rating: 2
Well I've made comments on WoW in the past. They basically amount to the obvious. WoW is a massive cash cow for Blizzard and they will milk it to the highest degree of profitability for as long as possible. Then release WoW2.




RE: WoW
By OblivionMage on 4/20/2007 4:29:43 PM , Rating: 2
I honestly think that a StarCraft 2 would be much more intelligent for Blizzard to release, as a WoW2 would just get repetitive and boring. The Warcraft story is near an end, and while another title might be milking it a bit too much, I think that they need to at least conclude this epic storyline.


RE: WoW
By Ramshambo on 4/20/2007 4:52:10 PM , Rating: 2
Universe of Starcraft!


RE: WoW
By KristopherKubicki (blog) on 4/20/2007 6:21:10 PM , Rating: 2
quote:
near an end

But, but... Icecrown! Northrend! The Lich King!!!!

Nay, I'm about done with WOW myself. I picked up all the epic crafted mage gear, a few pieces of Tier 4, and now I have no upgrades until Tier 6 -- Blizzard did some odd itemization.

I'm also a little surprised that guilds blew through an expansion pack that took 2+ years to create in a little under 2 months. Vashj is down already!?


Dynamics of a Corporation