Bungie’s Destiny: Much Ado About Nothing (Yet)

destiny-teaser-posterNot surprisingly, Bungie’s unveiling of their in-development Destiny to an assembled group of gaming press was massive news. After all, Bungie developed the Halo franchise, produced five well-received games in the series and have moved on to a much-anticipated new IP that will be published by Activision.

If you checked any of the major gaming blogs or news sites, Destiny’s unveiling wasn’t a one post piece of news. Writers dedicated multiple posts to news about the game but all those posts had one thing in common. Bungie didn’t unveil anything of substance about Destiny. Continue reading

The Economics of Video Game Development

call-of-duty-black-ops-2-wallpaperA few weeks back, one of the hot stories in the video game world was that Call of Duty: Black Ops 2 reached gross sales of $1 billion in only 15 days. What sounded like good news for publisher Activision was quickly reigned in by writers pointing out that CoD: Blops 2 sold fewer copies to reach $1 billion of gross sales than 2011’s CoD: Modern Warfare 3.

This raised an interesting question in my mind: How profitable are video games to make? Even if Blops2 sold fewer copies, shouldn’t Activision still have covered the sunk costs of development and marketing after paying for the variable costs of each unit sold? Continue reading