Legal costs. Marketing costs. Distribution costs. Overhead costs. Development cost for the initial game, including loans. Dividends for the investors, since it is a publicly traded company. Investing in future products.
The managers at Blizzard make over $150,000 and the programmers who have been with the company for a while make around $100,000 plus bonuses, medical benefits, 401k, etc. The costs stack up fairly quickly.
Well, that's what businesses use profit for...to advertise, develop more stuff, and make even more money. Some goes to shareholders, some goes to Activision's cut, and a big chunk lines the board's pockets. I was only listing their expenses, not their dividends and executive cuts.
In any case, they are one of the most profitable businesses in the entire US right now, aside from Apple and the gas companies, and it's an impressive feat. :)
All of the 11M subscribers don't pay $15 a month. A majority of those users are actually playing WoW/China (can't remember the company that runs that) who don't pay monthly at all (it's hourly, I think), and Blizzard just gets a couple of bucks per subscriber
( ... )
Actually, about 2/3 of the subscribers pay 15 a month, and the rest are on long-term discounts...I admit I exaggerated that part for dramatic effect, but that still puts their WoW take at around 1.5 billion.
They do use about 30 superservers (though that was 6 months ago...they may have more now), and the server maintenance and update team is comprised of between 17 and 20 people. Now, that's only for keeping things running, adding new items and side quests, that sort of thing. Major updates (like Wrath of the Lich King) are handled by a different group (and a combination of in-house and outsourced playtesters).
Unfortunately, I can't give out sources. My continued confidentiality is how I stay on the inside track with my compatriots at Blizzard, Nintendo, Dreamworks...even places like YUM Foods (KFC, Taco Hell, etc). :)
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Legal costs. Marketing costs. Distribution costs. Overhead costs. Development cost for the initial game, including loans. Dividends for the investors, since it is a publicly traded company. Investing in future products.
The managers at Blizzard make over $150,000 and the programmers who have been with the company for a while make around $100,000 plus bonuses, medical benefits, 401k, etc. The costs stack up fairly quickly.
If you would like more accurate financial info, check out Activision's 1040 tax form at http://files.shareholder.com/downloads/ACTI/455713240x0x126721/44311261-a39e-43e6-b511-4cdda5308295/ATVI07AR.pdf
Looks like they made a net revenue of about $ 1,513,012,000. All of Activision. Not just Blizzard. That includes all of their subsidiaries.
It's a pretty penny, but it isn't quite that crazy. :-p
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because the fuzion wasnt very long ago.
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In any case, they are one of the most profitable businesses in the entire US right now, aside from Apple and the gas companies, and it's an impressive feat. :)
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They do use about 30 superservers (though that was 6 months ago...they may have more now), and the server maintenance and update team is comprised of between 17 and 20 people. Now, that's only for keeping things running, adding new items and side quests, that sort of thing. Major updates (like Wrath of the Lich King) are handled by a different group (and a combination of in-house and outsourced playtesters).
Unfortunately, I can't give out sources. My continued confidentiality is how I stay on the inside track with my compatriots at Blizzard, Nintendo, Dreamworks...even places like YUM Foods (KFC, Taco Hell, etc). :)
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