NPD: World of Warcraft has sold 8.6 million boxes at retail
Gamasutra has received an interesting stat from the good folks at NPD: after hearing that The Sims 3 sold over 800,000 copies in its first month, they were curious to see what kind of unit sales our own World of Warcraft has experienced. And the numbers are pretty big: among the original game and all of the expansion packs since the vanilla release over four years ago, NPD says 8.6 million boxes of WoW have been sold in the US. That's a little misleading if you're comparing it to actual subscription numbers: remember that this is over three different releases (so the actual number of all-time players, not current players, is probably 1/3 of that), and it includes different collectors' editions of each of the three game editions. So there are nowhere near 8.6 million US players of WoW -- that's just how many times players have come through the retail line with the various releases.What that is, however, is a lot of money. Gamasutra estimates that at an average of $30 for each unit sold (the vanilla game currently retails at $20, but the expansions all sell at $40, and of course the original game was more expensive once upon a time), that's $258 million in income for Blizzard. In short, Blizzard's making a mint at the retail counter, even before they sign anyone up for subscriptions.
Then again, if you look at their own costs, those aren't insubstantial, either -- Activision's Bobby Kotick claimed that anyone starting up an MMO to compete with WoW would have to throw at least half a billion dollars into the mix just to get started, so we can presume Blizzard has spent at least $500 million on their staff, development, and hardware. So it's not like they're taking it all to the bank, though we can at least presume they're sitting firmly in the black.
Filed under: Analysis / Opinion, Fan stuff, Blizzard, The Burning Crusade, Making money, Wrath of the Lich King
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Reader Comments (Page 2 of 2)
Santorum Jul 30th 2009 2:16PM
@ Ramen Why sir, do you care so deeply about this? does the money Bilzzard makes or the number of subscribers they have effect you? No? I did not think so.... and to the rest of you who speculate, what makes you think Blizzard (who never has released false numbers before) is doing it now? How about you "financial wizards" put your , heh, mental powers to something that matters. Most of you sound like children googling Blizzard's financial status, please go back and play the game, because you have no grasp of real world finance.
Rant off. Good day sirs and madams, and children alike.
Firestyle Jul 30th 2009 2:40PM
Bliz lost 107 million in 2008. They spent 592 million in product development in 2008 as well, of which a vast majority probably is WOTLK.
Go to Page F4
http://www.sec.gov/Archives/edgar/data/718877/000104746909002015/a2190811z10-k.htm#ds18301_item_8._consolidated_financial__ite02490
VerticalEvent Jul 30th 2009 3:18PM
@firestyle: In 2008, they had 4 games in development:
WoW: WotLK
StarCraft 2
Diablo 3
And Unannounced MMO Project
So, I don't think it was a majority of WotLK they invested in.
iFuLeng Jul 30th 2009 3:35PM
@Firestyle
The reality of the situation is a lot more complicated than you're making out - Blizzard didn't lose $107M because they are suddenly unprofitable - there's a lot going on on this balance sheet, and on the face of it, a lot of it really doesn't make much sense without additional information.
For example, Blizzard made a net income of $227M on total revenue of $1,349M in 2007. In 2008, they lost $107M on total revenue of $3,026M.
In other words, between 2007 and 2008, their total revenue went up by almost $2B, but so did their costs. It's hard to figure out exactly why - they do list an almost $200M increase in product development costs, but the vast majority of the increase in costs are in Cost of Sales - Product Costs - almost a $1B increase. Cost of Sales (or Cost of Goods Sold) is a standard accounting term, ideally the total costs directly attributed to sales of the product. How you break this apart from product development when you sell software is a little unclear, but it seems like Blizzard spent an extra $1B on boxes, CDs, bandwidth, labor, support, etc. mostly on the Wrath roll out, and made $2B more in revenue because of it. Not a bad rate of return.
Rather than show a yearly profit of around $1.2B, they seem to have plowed the money back into the company, not surprising since they have two big products on the horizon. Some of the expenses are a little puzzling - $200M for IP licenses versus $9M the year before. IP licenses for what? $292M more for marketing is understandable, but a sudden jump of $100M for restructuring costs? It's hard to figure out what's really going on without an insider view of the company, but it hardly appears that they've suddenly become unprofitable, either as a whole or just considering WoW.
Remen Jul 30th 2009 4:28PM
It's not a matter of caring that much, in fact I wasn't even thinking of income. I was just putting some thoughts out there. I never claimed Blizzard was putting out false numbers. I was just trying to make sense of the number of copies sold vs. the number of subscribers. Nothing flamatory to anyone, just a thought/observation.
ChasW Jul 30th 2009 3:03PM
I believe, if I recall correctly, I got WoW in a Battlechest for StarCraft or WarcraftIII or somesuch and upgraded from there. Then I got Burning Crusade and Wrath via download. So, I never bought a box. So much easier.
iFuLeng Jul 30th 2009 3:39PM
I bought one WoW box, and used it to start up accounts for myself, my wife, and then passed it off to a friend. The first account's start-up fees were paid at retail, the second two (and maybe more, who knows) were paid online. This is probably fairly common.
Chris A Jul 30th 2009 3:37PM
Also this doesn't include the number of illegal copies people have gotten. I'm not saying I got one! But im sure they are out there.
cowy Jul 30th 2009 4:58PM
Just seeing that box makes me a sad panda. The Walmart in my town had collectors edition on WOTLK midnight release, we waiting in line (pretty close to the front) but alas they had 6 and I was the 7th person in line.
*sniff* The scars. I has them.