Activision planning to spend $500 million on Destiny06 May, 2014
Activision intends to spend $500 million developing and promoting "Destiny," according to a new report.
According to Reuters, CEO Bobby Kotick revealed the number during the Milken conference in Los Angeles last week. A company spokesperson said this cost includes marketing, packaging, infrastructure support, royalties and other costs.
Activision is eager to lay the foundation for its next multi-game blockbuster series and hope that Destiny can re-invigorate Activision's revenue, which slid 6 percent in 2013.
With the figure being so high, analysts say, to break even, Activision would have to sell around 15 million to 16 million units of the $60 game.
"It's a head scratcher, said Sterne Agee analyst Arvind Bhatia. "For brand new IP, it's tough but it could post a big surprise."
To put things into perspective Take Two Interactive spent $260 million to develop, produce and market the fifth instalment of Grand Theft Auto, a title which has gone on to sell over 32.5 million units to date.
"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.
"Over the long term, we expect the ultimate product costs to be roughly in line with other Triple-A titles."
What do you think of this news? Is Activision making a big bet or is Destiny sure to be the next big thing?
Edited On 06 May, 2014
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