Activision Blizzard to spend R5.2 billion on Destiny

Activision is backing Destiny to be its next billion-dollar franchise

May 6, 2014

Activision Blizzard intends to spend $500 million (around R5,2 billion) developing and promoting Destiny, potentially breaking industry records as it seeks to build the sci-fi role-playing video game into its next multibillion-dollar franchise.

CEO Bobby Kotick revealed the number during the Milken conference in Los Angeles last week. A company spokesperson said the number was accurate, but also included marketing, packaging, infrastructure support, royalties, and other costs.

Activision, eyeing the flagging growth of its long-running Call of Duty franchise, is eager to lay the foundation for its next multi-game blockbuster series.

Investors hope that Destiny, scheduled for release on 9 September 2014 from Bungie – the same studio that created Microsoft’s best-selling Halo franchise – could re-invigorate Activision’s revenue, which slid 6% in 2013.

The company signed a 10-year contract with Bungie in 2010 that gives it worldwide distribution rights and significant control over the potential franchise’s development.

“If you’re making a $500 million bet you can’t take that chance with someone else’s IP (intellectual property),” Kotick told the Milken conference. “We expect Destiny to be Activision Publishing’s next billion-dollar franchise.”



Analysts said $500 million would likely be a record spent on a single game – especially one without an established track record. To break even, Activision would have to sell about 15 million to 16 million units of a $60 game, analysts said.

“For a brand new IP, it’s tough but it could post a big surprise,” said Sterne Agee analyst Arvind Bhatia.

Bhatia expects the game will sell 8 million units. Grand Theft Auto 5, which hit stores in September 2013, was a runaway success with over 32.5 million units sold as of February 2014. But it was the fifth instalment of a critically acclaimed series.

“Bungie’s very ambitious plan is designed to unfold over a 10-year period,” said an Activision spokesperson. “The depth of creative content, scope, and scale is unprecedented and is required to bring Bungie’s vision to life.”

Do you think Destiny will turn a profit? Let us know in the comments and forum.

Source: Reuters

More gaming news

Destiny – all we know so far

The worst superhero games ever

Gaming laptops to suit your budget – part 2

Tags: activision blizzard, Bobby Kotick, destiny, development costs, headline

Shutterstock is the image partner of MyGaming – technology images can be found here


Are you playing Destiny, or do you plan to buy Destiny?

View Results

Loading ... Loading ...

Latest News

Nvidia GeForce GTX 980, GTX 970: SA price, review

Nvidia GTX 980 a

The new Nvidia GeForce GTX 980 and 970 have arrived – let’s see what they have to offer

Does gay belong in gaming?


A long time ago, I said we should keep “gay” out of gaming. Now I’m here to tell you why I was wrong

This week’s best gaming deals


You want games… we know where they are going for cheap. Let’s do business

PC gaming dying in South Africa?

South Africa SA news

PwC has released its South African entertainment and media outlook 2014 – 2018 report – here’s what it had to say about gaming


Newsletter Subscription

Email *
Enter the following to confirm your subscription *
Captcha image

Free MyGaming Newsletter: