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Posts with tag profits

Gold Capped: Selling enchanting scrolls in Cataclysm

Every week, WoW Insider brings you Gold Capped, in which Basil "Euripides" Berntsen aims to show you how to make money on the auction house, and Insider Trader, which is all about professions. Email Basil (new address is basil@wowinsider.com; old one no longer works) with your comments, questions or hate mail!

Enchanting is a very straightforward business. You have a few steady sources of income; however, one of the reasons that its overall profitability is high is that Blizzard put it behind the level 84 phasing wall, making a huge chunk of the profession in Cataclysm only accessible to people who have access to the shard trader.

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Filed under: Economy, Cataclysm, Gold Capped

Gold Capped: Bait and tackle


Every week, WoW Insider brings you Gold Capped, in which Basil "Euripides" Berntsen aims to show you how to make money on the auction house, and Insider Trader, which is all about professions. For Gold Capped's inside line on crafting for disenchanting, transmutation, cross-faction arbitrage and more, check in here every Thursday, and email Basil with your comments, questions or hate mail!

I'm going to start trying to include a link to something I've enjoyed reading in the gold-making blogosphere every week. Our first installment is JMTC's blogging carnival about lessons learned while preparing for Cataclysm. There are 18 submissions, which should keep you busy for a while.

We've talked about auction house PvP before, but today we're talking about a glyph PvP method I like to call bait and tackle. Here's the problem: In order to sell glyphs, you need to spend a fair amount of time crafting them, as well as milling. In addition, on most sizable realms, there are a few hard-nosed competitors who are willing to play for longer than reasonable players. There have been times when, day or night, if I posted a batch of glyphs, every single one would get undercut exactly every 10 minutes.

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Filed under: Economy, Gold Capped

Gold Capped: Making money in the time remaining before Cataclysm

Every week, Gold Capped (from Basil "Euripides" Berntsen) aims to educate players about how to make money on the auction house. For the inside line on crafting for disenchanting, transmutation, cross-faction arbitrage and more, check in every Wednesday. Also, feel free to email Basil any comments, questions or hate mail!

I got an email recently asking about something that's been on my mind lately: What ways of making gold are there when Cataclysm is just around the corner?

Graham writes:
I just recently had my first successful foray into the world of being an auctioneer. I am [now] sitting very happily with 28k gold earned [through selling crafted epics]. My goal is to purchase a Bane of the Fallen King title and ICC-10 full meta clear, which on Mal'ganis Horde sell for 50k and 75k respectively. At the time I am writing this, I have sold all of my inventory of epics and all of the materials that I was stockpiling to make more because my perception is the market has almost completely evaporated with the rumored release date of Nov. 2 for Cataclysm.

What other methods of accumulating a sizeable sum of gold over the next six weeks are available that should continue to be profitable clear up until the expansion hits?

I have access to max-level enchanting, blacksmithing, mining, alchemy and jewelcrafting. If the glyph market is your preferred answer, I could level a scribe. Unfortunately, my observation is that all crafted items (raid consumables, 264 epics, etc.) are selling at or below their material cost to create. I have looked into the Saronite shuffle and its various methods of earning income, and as near as I can determine, it's a zero-sum market as well (cost of ore = expected sale of any of the options).

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Filed under: Economy, Cataclysm, Gold Capped

Cashing in at the Darkmoon Faire


I just posted a little while back that the Darkmoon Faire needed a change, but apparently there's still some benefit to be had over there -- Valdesta of WoWGrrl has found at least one way to keep the Faire interesting. She's been keeping a character over there, apparently, and periodically checking in on what the vendors have. They sell not only little pets and miscellaneous items like the Heavy Leather Ball (which often sell for a tidy profit on the AH, since people aren't always aware that the Faire vendors sell them), but there are also vendors there who sell profession items like herbs, motes, eternals, leathers, and so on.

And as anyone who's ever levelled a profession knows, those are often worth their weight in gold, not just on the AH, but in terms of leveling up your own alt professions as well. As Valdesta says, it's worth camping an alt over there just to check in during raiding downtime or on a flight path with your other character, for the same reason you should always check and see just what other vendors around the world might have for sale -- sure, you won't make much with just one buy, but over time, picking up cheap crafting mats from the DF can lead to some solid profits on the AH.

Filed under: Herbalism, Alchemy, Leatherworking, Items, Tips, How-tos, Virtual selves, Odds and ends, Making money

Vivendi makes $1.5 billion in 2007, BC pushes Blizz up 58% from 2006

A few days ago we tried to estimate how much Blizzard was making from those 10 million accounts, but now we know for sure: it's actually around $1.2 billion (which is up 58% from 2006). Now, you can probably see that that's only $500 million short of the estimate that we were trying to prove was wrong, but don't forget that the $1.2 billion isn't just subscription fees-- it includes all those sales of Burning Crusade last year at full release price. What Blizzard earns from subscription fees is just part of that total.

Still, a $1.5 billion year for Vivendi (especially when their other games divisions actually dropped by almost 30%) is good news for them. Of course, the question they (and more specifically, Activision Blizzard) have to be wondering about is if the success can continue. If Blizzard can release a new expansion this year and hold off the coming threats in the MMO industry, they'll be looking at even bigger numbers in 2008. But that's a lot to ask-- there's no question Vivendi (and Activision) will come up with huge amounts of profit this year, but growth of this magnitude will be a tough hill to climb.

Filed under: Analysis / Opinion, Odds and ends, Blizzard, Economy

How much money Blizzard is really making from 10 million subscribers

An article on Playfuls.com (which I found via Incgamers) tried to take the news about Blizzard's ten million subscribers from earlier this week, and suss out just how much money they're making. They do what most people would do, which is multiply their $15 subscription rate per month times ten million, which would mean that Blizzard is raking in $150 million a month, or about $1.7 billion a year is gross profits.

Except that's not right. Because while North American and European players pay about $15 a month, many Chinese and Asian subscribers don't pay monthly-- they pay hourly, at a much lower rate than what other players around the world pay. With 2.5 million and 2 million subscribers in North American and Europe respectively, Blizzard is still making $810 million a year (not to mention the cost to purchase the original game and the expansion pack, which at this point is probably negligible at this point given how much retailers like to take out) in those places. But that leaves 5.5 million players in other countries, and their payment plans aren't as rigidly defined.

Of course, obviously these are all estimates as well, and they're gross, too-- you have to remember that Blizzard pays a huge group of people money to keep up content, customer service, promotion, and administration, as well as maintenance on what must be a huge number of servers (each realm has at least three or four servers running on it, for each continent and all the instances). And Blizzard has other income coming in as well-- licensing fees, fees from The9 (the company that actually runs WoW in China, and likely collects subscription fees there), transfer fees from players, and so on.

Don't get me wrong-- Blizzard is still making a lot of net money on the deal, easily into the hundred millions. But it's not as easily as multiplying what you're paying by ten million, because that's just not the case.

Filed under: Analysis / Opinion, Blizzard, News items, Economy, Making money

Vivendi Games earnings see 109% increase

According to Next Generation, World of Warcraft is a nice little cash cow for publisher Vivendi. With first-quarter earnings of $30m this year, an increase of 109% from the same period last year, Vivendi's financials have beaten analyst expectations.

A report from Vivendi says that "this dramatic improvement was driven by a growth in revenues, with an increased proportion relating to the higher margin of World of Warcraft business". While increased development costs are also cited, it seems clear that a fair amount of the money pouring into Vivendi's pockets is staying there.

While players suffer from server and infrastructure problems, is this entirely fair? Well, publishers don't get into the MMO business to make losses. Without seeing a complete breakdown of where our subscription money is going, we're not placed to judge.

Filed under: Analysis / Opinion, Blizzard

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