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Posts with tag 11.5-million-players

WoW generates half of Acti-Blizz earnings

The folks over at CVG picked up an interesting note on our Activision-Blizzard overlords' 2008 fiscals. According to Arvind Bhatia, World of Warcraft probably generated 30 cents out of each 60 cents per share of earnings. Put another way, that's about $400 million for shares at the end of the fiscal year ending this past December.

Now, this is kind of the best guess of Mr. Bhatia, who works under the firm Sterne Agee. (And they certainly have a reputation that says we could probably believe them.) But even without Sterne Agee's reputation, a little back-of-the-envelope math shows that his analysis probably bears fruit. We already know that WoW has 11.5 million subscribers. At $15 dollars a pop per month, you're already looking at $172 million each month. But we know that a lot of folks have discount plans, and the charge isn't the same across the globe. I can easily believe a $400 million yearly earning from subscriptions, and am actually surprised it's not higher.

Of course, Bhatia has recently lowered some of his other estimates for ATVI, and warns that the consensus estimates predicting $5.2 billion in revenue are probably too high. Nonetheless, at the end of the day, this does say that World of Warcraft is doing just fine. We can feel free to threaten to quit over the latest nerf, the lights're going to stay on while we're out the door.

Filed under: Analysis / Opinion, Blizzard, News items

World of Warcraft hits 11.5 million subscribers

It's been recently announced that the World of Warcraft has hit another milestone: a grand total of 11.5 million subscribers. This really comes as no surprise after the release of an expansion, especially one as widely hyped as Wrath of the Lich King which broke a few records of its own. I think it would be bigger news if they hadn't hit a couple of new milestones.

Gamesindustry.biz has a quote from Senior VP of merchandising at GameStop Bob McKenzie, indicating that it's not just Wrath of the Lich King doing well. These numbers haven't spiked because of all of the returning customers, WoW is gaining plenty of new ones, too. The base WoW package and the World of Warcraft Battle Chest are still doing quite well. Better than last year, he specifies. So while those base package purchases are certainly fueled by the Wrath hype, it's bringing in new customers, not just the returning customers.

WoW may not be the kind of game for every gamer out there, and the game isn't without its flaws. Despite that, it has proven over and over that it's by far one of the best games out there, and definitely the best of its genre. I don't expect it will be going away anytime soon.

Filed under: Analysis / Opinion, Blizzard, News items, Wrath of the Lich King

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