Activision to Spend $500 Million on Destiny

destiny logo

It has been reported that Activision intends to spend 500 million US dollars on development and marketing costs for their newest IP from Bungie, Destiny. Activision CEO, Bobby Kotick had revealed the number during the Milken conference in Los Angeles last week where the high budget includes expenses for marketing, packaging, infrastructure support, royalties and other associated costs.

Activision signed a 10-year contract with Bungie in 2010 for worldwide distribution rights and control over the development, the IP was rather oddly unveiled during a lawsuit between Activision and ex Infinity Ward heads in 2012.

“If you’re making a $500 million bet you can’t take that chance with someone else’s IP,” Activision CEO told the Milken conference. “The stakes for us are getting bigger.”

“Destiny” is a cross between a traditional shooting game format and a role-playing game in which gamers play characters in a real-time online world. The title allows gamers to play “Guardians” who protect the last city standing on a post-apocalyptic Earth.

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. “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.”

More on Destiny is expected to be revealed during E3 2014 this June.

Source: Reuters

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