When Call of Duty: Modern Warfare was released, the game made $310 million in 24 hours and $600 million in 5 days. The first question that might be on a financial analyst’s minds may be, “how much of that was profit?” It turns out that the game costed roughly $40-$50 million to produce. For a video game this is a massive budget. But it took only 2 years for Activision to put together. Gran Turismo 5 took about 5 years and costed about $60 million to put together so far as a comparison.
The launch budget of the game was about $200 million which is about the same cost as a summer movie. That $200 million included producing, distributing, and marketing. “My goal was to create a launch that would compare very favorably to the biggest box offices of all time,” stated Activision Blizzard CEO Bobby Kotick in an interview with the L.A. Times. It looks like Kotick met his goal based on the sales the game made thus far.
Dan Rosensweig is the former COO of Yahoo! Inc. and former President of CNET. Now Rosensweig is getting into gaming by joining Activision Blizzard Inc. to head up the Guitar Hero franchise. Rosensweig quit Yahoo! in 2006 after working there for five years in product development and marketing. Rosensweig left around the same time Terry Semel did.
Coincidentally Activision’s current CEO Bobby Kotick served on the Yahoo! board of directors up until last year. When Rosensweig left Yahoo!, he worked at Quadrangle Group. Quadrangle is a private equity firm based out of New York. Rosensweig was the Silicon Valley representation of the firm.
Rosensweig’s responsibilities at Activision will be to maintain the whole Guitar Hero franchise. The franchise was put together by Activision’s Red Octane unit and Neversoft studios. Guitar Hero has had three blockbuster games in the franchise, but some analysts believe that the growth for music games may be slowing down. Rosenweig needs to make sure Guitar Hero does not become obsolete.
“With a platform and content that universally engages a wide range of audiences, Guitar Hero has incredible growth potential,” stated Rosensweig. “I look forward to continuing to develop Guitar Hero into an even more successful enterprise.”
