Vivendi makes $1.5 billion in 2007, BC pushes Blizz up 58% from 2006
by Mike Schramm 
Jan 31st 2008 at 3:30PM
A few days ago we tried to estimate how much Blizzard was making from those 10 million accounts, but now we know for sure: it's actually around $1.2 billion (which is up 58% from 2006). Now, you can probably see that that's only $500 million short of the estimate that we were trying to prove was wrong, but don't forget that the $1.2 billion isn't just subscription fees-- it includes all those sales of Burning Crusade last year at full release price. What Blizzard earns from subscription fees is just part of that total.Still, a $1.5 billion year for Vivendi (especially when their other games divisions actually dropped by almost 30%) is good news for them. Of course, the question they (and more specifically, Activision Blizzard) have to be wondering about is if the success can continue. If Blizzard can release a new expansion this year and hold off the coming threats in the MMO industry, they'll be looking at even bigger numbers in 2008. But that's a lot to ask-- there's no question Vivendi (and Activision) will come up with huge amounts of profit this year, but growth of this magnitude will be a tough hill to climb.
Filed under: Analysis / Opinion, Odds and ends, Blizzard, Economy
Reader Comments (Page 1 of 1)
johnnytorrance Jan 31st 2008 3:46PM
what stock exchange are they under and whats their name
krispycow Jan 31st 2008 3:53PM
Customer service (in game and out) remains horrid, Blizzard can't balance crap, nerfs fun, nerfs novelty, ignores exploits (walljumping, hunter trap anyone?) and expansions/content come out slower than dirt... and yet you keep paying.
I cancelled my account a while back now. Really what reason is there for playing till the next x-pac? Its all going to be a gear/money reset anyway.
Do you suppose the executives are enjoying their beautiful beachside mansions in Dubai? I think they are...
Liel Jan 31st 2008 4:21PM
You cancelled it, hate it yet still browse a wow related site to cry.
Arabelli Feb 1st 2008 11:54AM
... yes. I'm sure they're living in Dubai and living in mansions. That's totally logical and free of hyperbole.
Does anyone have a clue how much maintaining all this? Are you honestly trying to say it's all somehow pure profit?
keltian Jan 31st 2008 3:55PM
Well I just looked at their website and from what i can tell their stock exchange ticker is NASDAQ: ATVI, and it is under Activision Blizzard.
Gamerdad Jan 31st 2008 6:34PM
I stopped playing "keep up with the jones'" and hung up my raider towel. Now I just play to level toons and have fun and guess what? The game is even more amazing to me now. Props to Blizz for creating this masterpiece. They deserve all the profits they're getting right now.
Liel Jan 31st 2008 4:22PM
I hope this puts all the "zomgblizzard you make a trillion dollars 10mil x 15 = a trillion" comments on the forums now.
GameJunkie Jan 31st 2008 4:22PM
You can see why they made so much money in BC, everything is re-colored old artwork. They must have fired all their artists and creative staff.
Because the content is the same re-hashed grinds.
Let's make the game more fun, let's add 20x more Reputation factions to grind and let's keep making the 1-2 classes Over-powered so that people will keep coming back and try to beat them.
Charlie Taylor Jan 31st 2008 4:47PM
Are a majority of the new items in ZA a re-coloring? No. BT? No. Outland? No. Lets see, as far as new mobs go we've got clefthoof, talbuk, elekk, etherals, flesh beasts, skettis, fel orcs (not a recoloring, look closer), mana wyrms, those underground worms, all the new mechanical constructs, Netherwing dragons, those giant rock things in netherstorm, oh yeah, and it's kind of hard to think that the freaking FEL REAVER is a recoloring.
r.a-c.r. Jan 31st 2008 4:46PM
freaking confusing at first because of how you chose to quote the original story. Is it $1.5 or $1.2?
Vivendi banked $1.5 bil in 2007, of which Bliz was $1.2 bil.
Speaking of Vivendi, anyone seen the new version of The Big Lebowski DVD in which the announcer at the beginning refers to Vivendi Entertainment as the "French sewage-processing conglomerate Vivendi."?
Which is based in part on fact since, from wikipedia, "In July 2000, Vivendi spun off its water and waste companies - once its core business - along with interests in other public service sectors such as transport into Vivendi Environnement (IPO in Paris in July 2000 and in New York in October 2001), later (2003) renamed Veolia Environnement."
I think it is quite funny that in the last decade a French sewage treatment company started in the time of Napoleon has ditched wastewater and moved into MMORPGs and Guitar Hero III.
PNess Jan 31st 2008 5:02PM
SIGH
that is revenue not "make"
"make" would be = "profit", which based on the last SEC statement was around 50% profit margin
so the make about 750m a year in profits at the top end...prior to any additional non warcraft expenses.
"Now, you can probably see that that's only $500 million short of the estimate that we were trying to prove was wrong"
no the estimates were dead on...you are counting revenue against profit. the amounts bantered around before were profits. 1.2billion is revenue.
Thander Feb 1st 2008 1:39PM
Totally agree. Their writers need to read more before writing.
Their estimate was $500 million, the actual numbers are $750 million. So their estimate wasn't far off.
glorft Jan 31st 2008 10:17PM
I think its great that the person in the picture has over 24,000 gold and has a single bandaid and a few mushrooms in his bag.
Fel Jan 31st 2008 10:38PM
What say we hand me that 970 and put you at an even 24k? Sound good? Cool.
Kryptonls Feb 1st 2008 3:37AM
970? Just take the lot imho.... it's not much these days.
Fel Feb 1st 2008 8:27PM
....well I must be doing something wrong... =/