Activision Loses $1.5 billion market cap b/c of Destiny

Its an example of how a company with a game can get a substantial amount of money in advance from M$ cuz M$ practice of buying exclusive.

I mean, Kojima or Ken Levine could do the same for what ever game he does next. Kojima can go to M$ and they'll gladly fork over a hefty amount of money in advance just to secure some type of exclusive whatever if they cant just get the whole game exclusively.

They need an acti humble bundle asap and kick starter for new games.

Dead serious.

So a few companies gambled and lost. I hate when I gamble in my pants and lose.

Activision Blizzard did sell $500 million worth of the Destiny to retailers, thus Activision Blizzard made $500 million (the largest launch ever for a new IP).

Oh, and remember people that Destiny didn't cost $500 to make. Important tidbit.

This kind of banter doesn't make any sense to me. If the AAA model dwindles we'll be left with nothing more than indies with yearly Call of Duty and Madden and the tri-yearly Grand Theft Auto.

I'm curious, what would be a good solution in your opinion?

It cost them more didn't it? They say it's the most expensive game made. And I thought retailers can return part of it if it won't sell?

It's their own fault.

I seriously doubt Bungie needed $500 million for everything regarding Destiny. It's a good game and has sold well, but when you're in the hole $500,000,000....you're gonna have to really move some software.

I dunno if Bungie said "Hey we need this much!!!" but they should have been smart enough to say "The cost has tallied up to $300,000,000 and thats where we draw the line."

Meh, it's stock. Stock is people who don't know what's happening and what's planned gambling on what they think will happen in the future or blindly reacting to the present. Call me when you can pull up financial documents where the company is actually losing money.

Heh, after this month's NPD software sales report, shit will be different. Market psychology is fickle as all ****.

Yup..lol

Which is a shame that such a mediocre game might actually end up selling.

too high budget yes but marketing wasnt just for one game, they tried to create a AAAA (budget) franchise. So marketing expenses werent ridicilous imo. If this game got 85+ metacritic, activision would make A LOT of profit from upcoming games including destiny in their name

It's not the quality that's in question, it's purely the hype. The hype that Destiny got was really the main reason why it got the reviews it got.

I've enjoyed it, it does alot of things well but it's mission structure is terribly repetitive. The ending was half assed to. I'd give it a 7.5 or 8.

“We’re pouring everything it takes into Destiny to ensure it meets our fans' expectations, and our own,” Osborne added. “Activision is, too. But the budget for Destiny, including associated marketing costs and pizza Wednesdays, is nowhere near 500 million dollars.”

http://www.gamespot.com/articles/destiny-budget-nowhere-near-500-million-bungie-says/1100-6420802/

Planetside2 is a mmofps. Destiny isn't.

context is that $325 mil in less than a week with holidays coming up. people are panicking based on one weeks sale? those investors need to at least ride it through the holiday. Highest selling new ip scores $325mil and is viewed as a disappointment? what!?!?! its like tomb raider selling 5 million copies and underperforming...

This game is gonna make a lot of money, move a lot of units and will keep on selling as new content is added and Activision makes sure people are aware of the support it will continuously be having in the long run.

This is Diablo 3 all over again, with gamers taking the piss at vanilla D3 and calling it a failure only to come back in droves as the expansions and tweaks deliver on what they originally wanted.

If this is a failure then gaming as a high production entertainment business might as well close up shop.

yup.

Biggest launch of the new gen.

Sad that this is what consoles are about nowadays, but it won't change anytime soon. People are too easily bought through advertising and hype nowadays. It doesn't matter what market.

The traditional AAA model really needs to crash at this point. The sooner it happens, the less painful it will be.

@charizard1605: Wow.

I actually created a post about Destiny possibly having a poor sell-through because of the reviews. I was hoping I was wrong...

Sonmi-451: That AAA game model... must be destroyed.

Hae-Joo Chang: Yes.

Sonmi-451: The systems that built Destiny must be turned down.

Hae-Joo Chang: Yes.

Sonmi-451: No matter if we're 60fps or 1080p, we are all gamers.

Hae-Joo Chang: Yes.

Sonmi-451: We must all fight and, if necessary, ruin Bungie and Activision to teach people the truth.

Hae-Joo Chang: This is what we have been waiting for.

LOL charizard thread

This is an honest question: why did they invest so much in this game and where did that money go? There are plenty of games that haven't such a high budget that have great gameplay, graphics, story, soundtrack, etc. Is there a chance they overspend on advertising and marketing, going further than what would be an optimum point? If not, then what explains that?

Depending on the answer I think hype actually hurt in this one ocasion. If they had spent less, and hyped the game less, it'd be a lucrative product. There's a reason we say in my country that satisfaction = delivered quality/expectation (or hype).

It's about time.

@Shewgenja: NPD won't make their money back. investors most likely already know the sales.

ALL THAT MONEY and you can't even fly your ship to the planet on your own. Load screen, load screen, load screen. Little touches like this would have made DESTINY feel way more epic. Instead you're just picking the planet, LOAD, then drop down then leave, LOAD.

Oh look there's my ship...damn wish I could actually fly the damn thing.

activision thought it had gamers on their hands with past gen visuals in a nerdy fps game lol

gamers still want next gen visuals and immersive realistic fps games (like what battlefield should be)

Assuming investors use any wisdom at all. This is a bunch of people who don't know anything about gaming using a tenuous rating system to make a knee-jerk reaction. I'm not trying to say everything is fine in Destiny Land, but the evidence suggests that this is an over-sell.

Wait so you telling me activision stock is bigger than sony?

lol

Game is good. Solid shooter. Had this game been made by an unknown publisher everyone would be praising how underrated it is. But because it was made by the creators of Halo.... it gets hate for not being Halo.

The destiny game itself didn't cost 500 million, the whole series plus marketing will cost 500 million. 10 years of staggered releases with expansion packs, comets and direct sequels that tie into an overall arc. Activision and Destiny have already made money off this game at this point. So the rest of the above will release as scheduled.

Kudos to those SWers rightfully pointing out that almost nothing about Destiny is reflective of the "traditional AAA model."