Home Gaming Activision’s half a billion dollar Destiny gamble

Activision’s half a billion dollar Destiny gamble

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Whether you’re interested in the game or not, Destiny is starting to make a lot of noise. It’s Bungie’s first game since being freed from Microsoft’s Halo shackles and adds a number of MMO elements to the online co-op shooter. It’s a bit like Halo and Borderlands had an MMO-tainted baby.  Activision’s taking a gamble by footing the bill. It’s a pretty big bill.

Activision-Blizzard boss Bobby Kotick revealed that his company will be spending half a billion dollars making and then marketing Bungie’s Destiny. That includes “marketing, packaging, infrastructure support, royalties and other costs,” but it’s s till a ludicrous number – and it would make Destiny the single most expensive video game ever produced.

It’s a huge gamble, as while Bungie knows what they’re doing, the game is entirely unproven, and spending this sort of money on a brand new IP is unheard of. To break even, Activision would have to sell about 15 million to 16 million copies of the game, which is rather unlikely – but not impossible. Grand Theft Auto V has sold over 32 million copies to date. that game however, is part of an established franchise.

And that’s likely what Activision is gambling on. They’ve signed a 10 year publishing deal with Bungie, and they’re banking on Destiny becoming the next big thing, perhaps even usurping Call of Duty.  they may not make their money back with this first game, but they’re hedging their bets that can establish Destiny as another of the company’s key pillars.

“If you’re making a $500 million bet you can’t take that chance with someone else’s IP,” Activision CEO Bobby Kotick told the Milken conference. “The stakes for us are getting bigger.”

Honestly, I’m glad to see the company investing in new titles and not just relying on Call of Duty (and now Skylanders!) to bring in the big bucks. Activision’s switched focus of late from publishing tons of licenced fodder to just a few key titles, and it very much hopes Destiny will be the next big one.

For reference, half a billion US dollars is around 5 261 350 000 South African Rands. That’s enough to buy 228 754 347 Big Macs, 21 and a half Nkandlas, 8 333 333 copies of Grand theft Auto V at full retail price.

Last Updated: May 6, 2014

No Comments

  1. GalacticLordCaptainAwesomeness

    May 6, 2014 at 11:07

    Meh, with all the Blizzard Monies and the Frickin Call of Doodie, half a BILLION, cannot hurt that much

    Reply

  2. Jedi JJ

    May 6, 2014 at 11:16

    Gambling on destiny.
    Don’t we do this every day?

    Reply

    • Admiral Chief in Space

      May 6, 2014 at 11:30

      [insert cricket noises here]

      Reply

    • Alien Emperor Trevor

      May 6, 2014 at 11:34

      lol

      Reply

    • Wincethis

      May 6, 2014 at 11:36

      tehehe

      Reply

  3. Alien Emperor Trevor

    May 6, 2014 at 11:21

    Okay, that’s a lot of money. They must really be playing a long game with this one to get a return (which I actually support). Get ready for millions of DLCs & microtransactions though I bet.

    Also, this is worth a repost. Doesn’t bode well for this massive investment if it turns out true for a lot of people.

    http://kotaku.com/i-played-45-minutes-of-destiny-and-it-was-kind-of-bori-1568127899

    Reply

  4. Wincethis

    May 6, 2014 at 11:41

    That is some serious money!

    Reply

  5. Decembermaloy

    May 6, 2014 at 12:03

    Yum, can’t wait on the DLC for my DLC

    Reply

  6. Hammersteyn

    May 6, 2014 at 12:10

    Activsion will make that money back in no time with their awesome games

    Reply

  7. Matthew Holliday

    May 6, 2014 at 12:12

    to be fair, they have the advantage of being the biggest title available for ps4, being available on all console platforms and sofar, is the most anticipated game of the year.

    so by all accounts, if any new IP has a chance at selling 15million+ copies, it would be this one.

    Reply

  8. InsanityFlea

    May 6, 2014 at 12:24

    Destiny can wait :p

    Reply

  9. Ultimo_Cleric N7

    May 6, 2014 at 14:37

    This game…..drooling for it

    Reply

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