Activision has just revealed that they intend to spend whooping $500 million in development and promotion of Bungie’s upcoming sci-fi shooter “Destiny”. The figure was revealed by Activision CEO Bobby Kotick during Milken conference in Los Angeles last week.
The spokesperson from Activision further clarified that $500 million figure is accurate and it includes marketing, packaging, infrastructure support, royalties and all other costs.
At the Milken conference, Bobby Kotick said: “If you’re making a $500 million bet you can’t take that chance with someone else’s IP, the stakes for us are getting bigger.”
Read reactions of few well known industry analyst on this $500 million spending of Activision on Destiny.
Sterne Agee analyst Arvind Bhatia says: “It’s a head scratcher, for brand new IP, it’s tough but it could post a big surprise”. Bhatia also revealed that he expects Destiny will sell 8 million units (this is a tricky figure considering the fact that to break even Activision needs to sell 15 to 16 million units at $60 cost).
Another analysts compares this $500 million figure with figure that Take-Two Interactive spend on Grand Theft V i.e $260 million inclusive of everything development, production, marketing and other cost.
Mike Hickey, an analyst at the Benchmark Company says Activision’s “Destiny could hit large numbers but there’s no way they would come close to Grand Theft Auto,”
Tell us what you guys have to say about this massive spending of Activision on Bungie’s new sci-fi shooter IP, Destiny? Share your opinion with us in the comment section below.