Activision Blizzard (the parent company of Blizzard Entertainment) held an Analyst's Day earlier this week (in which a bunch of stock analysts sit down to crunch numbers and predict the future), and they came out of it really well -- according to those in the know, Activision Blizzard is set to do very well in the future
. Buoyed by Blizzard and their other big franchises (do we have to name them by now? Call of Duty, Guitar Hero
, etc.), 99% of analysts give the stock a "Buy" or "Hold" rating, and many were impressed with what Activision told them about their releases in 2009.
And we got another interesting insight into just what kind of money Blizzard is looking at -- they reported on the call that since 2004, they've spent $200 million
on the upkeep of World of Warcraft
alone. That includes things like payroll, customer support, and hardware updates, of which there have been plenty of those
. $200 million does seem like a lot, but of course when you consider just how much revenue they've pulled in via subscriptions (ten million players paying up to $15 a month, though Blizzard has all kinds of different subscription plans
around the world), $200 million over four years isn't all that much.
We're told, though, that that money doesn't include any development costs (pre-release, and we're not sure if it includes patch/expansion development or not, either). And it certainly doesn't include Blizzard-wide costs, like their new HQ
, or what they spend on advertising, promotion, and those big events
held around the world. There's no question, however, that there's plenty of money coming both in and out of Blizzard's doors.
Filed under: Analysis / Opinion, Blizzard, Expansions, Making money, Hardware