It's getting harder to sell video games to players mainly because of a weak economy which reduces disposable income that can be directed to entertainment and because of the rise of the free to play model and of titles that can be enjoyed on social networks. For Activision, one of the biggest publishers in the world, that might mean that as profits dry up in the retail sector introducing subscription based spin offs for its biggest franchises becomes a necessity.
Michael Pachter, who is an analyst working at Wedbush Morgan who is outspoken about the video game industry, has stated, “Activision could grow earnings meaningfully by monetizing Modern Warfare 2 online multiplayer. We estimate that the number of hours spent playing MW2 online is roughly 4 billion combined on Xbox Live and PSN, suggesting a large revenue opportunity. We expect the company to announce plans to monetize online multiplayer content in MW, Black Ops, StarCraft II and other games before year-end.”
The statements from Pachter come just as Activision itself trumpeted the fact that downloadable map packs for its
Call of Duty series have managed to sell more than 20 million units worldwide, which shows that there's an audience that is ready to spend money regularly for a franchise that's attractive.
Pachter would not hint at subscriptions for
Starcraft 2 and in Call of Duty if it was not for statements made by Bobby Kotick, the Chief Executive Officer of Activision Blizzard, who recently confessed that one of his dreams was the creation of a Call of Duty themed MMO and then poured gasoline on the rumor fire by saying that “non-console-based video games” are supplying most of the operation profit for the company that he is leading. Earlier in the week another analyst, Mike Hickey, talked about how a
Call of Duty MMO launched in China and South East Asia could make a lot of money for both Activision and its partner, NetEase.