My first article on the issues of brand licensing and Bobby Kotick's comments pondering the profitability problems that Star Wars: The Old Republic could potentially have due to the amount of money it costs to license the Star Wars franchise received some nice follow-up emails. Many readers sent in emails about why people hold their licenses to their chests and charge so much, when it would logically be better to get the brand name on anything and everything people touch. After all, more products with your logo on them is good, right? Well ... Not really, and not always.
Last week, I confessed to not knowing the amount of money Lucas was going to be paid for the Star Wars license for The Old Republic, but we could surmise that it would be a hefty fee. Readers pointed to an article by Eurogamer that interviews Michael Pachter, a games industry analyst many people know of. He believes that the cut LucasArts will be taking is around 35% of the revenue split after Electronic Arts makes back all of the cash that it puts into the game itself. If that's true, it's pretty astonishing, since LucasArts has so much faith in EA and BioWare to make this game have some intense staying power.
Where World of Warcraft is concerned, Blizzard lives in a different world where rather than have to choose the perfect partner to make the next StarCraft game, it has to operate as the LucasArts-like party, finding the right people to make everything associated with its brands. Where The Old Republic is another Star Wars product, Blizzard's most popular franchise is a game first and a world of products secondary.