Quantcast
Kotick explains how to screw $500 out of a $50 game - Destructoid




Game database:   #ABCDEFGHIJKLMNOPQRSTUVWXYZ         ALL     Xbox One     PS4     360     PS3     WiiU     Wii     PC     3DS     DS     PS Vita     PSP     iOS     Android


Kotick explains how to screw $500 out of a $50 game


11:00 PM on 09.15.2009
Kotick explains how to screw $500 out of a $50 game photo



It seems lately that every time Bobby "Possibly Had Sex With Hitler's Ghost" Kotick opens his venomous mouth, he says something thoroughly disgusting. The evil CEO of Activision has laughed about charging high prices for videogames, pushed for a lack of fun in videogame development, and now has demonstrated the joys of squeezing $500 from a $50 game purchase.

"In the last cycle of videogames you spent $50 on a game, played it and took it back to the shop for credit," said the redheaded recidivist at the Deutsche Bank Securities Technology Conference. "Today, we'll [charge] $100 for a guitar. You might add a microphone or drums, you might buy two or three expansions packs, different types of music. Over the life of your ownership you'll probably buy around 25 additional song packs in digital downloads. So, what used to be a $50 sale is a $500 sale today.

"And the best of all margins -- the 25% operating margin business -- has the potential as we can see with World of Warcraft to be a 50% operating margin business. What used to be a low 20s return on invested capital business is now growing to a plus 40% return on invested capital business."

You can almost hear his sense of perverse glee, can't you? 

Of course, Kotick is telling investors what they want to hear, but his attitude toward the game industry and public disregard for his customers has been frankly appalling. He is clearly a man who knows that he's a hated, underhanded individual, and seems to actively revel in it. Of course, the gullible fools paying $500 per Guitar Hero installment don't get to hear Kotick's disdain for them, so they'll just keep paying him until he eventually crashes the market.






Comments not appearing? Anti-virus apps like Avast or some browser extensions can cause this.
Easy fix: Add   [*].disqus.com   to your software's white list. Tada! Happy comments time again.

Did you know? You can now get daily or weekly email notifications when humans reply to your comments.






Activision

12:00 PM on 09.16.2014
Review: Destiny

It's been a small journey reviewing Destiny, but now I've experienced every facet of the game and I'm ready to make my decision. As mentioned previously, the story and setting leave a lot to be desired, but the gunplay is ver...more



9:00 AM on 09.16.2014
Destiny's first raid, the Vault of Glass, opens today

Today the first six-person raid opened up in Destiny -- the Vault of Glass. It's one of the events in the game that has no matchmaking function, so you'll have to use any number of third party tools to find friends, or d...more



11:30 AM on 09.12.2014
Bungie reveals upcoming Destiny events and free content through October

Since Bungie plans on supporting Destiny throughout the year and into 2015, free content updates and events will populate the universe in addition to the DLC expansions that are already announced. The first event is a Sa...more



View all Activision






Back to Top




All content is yours to recycle through our Creative Commons License permitting non-commercial sharing requiring attribution. Our communities are obsessed with videoGames, movies, anime, and toys.

Living the dream since March 16, 2006

Advertising on destructoid is available: Please contact them to learn more