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WoW Doesn't Make Very Much Money in China

DevourDevour LiverpoolPosts: 902Member

http://www.wow.com/2009/11/30/the-9-revenues-drop-by-94-after-losing-wow/

Assuming that The9 make a 1/3 of the profit that Blizzard does, then Blizzard are only making £100,000,000 per year in China, which is fragmentary compared to the rest of the world. Hell, that's assuming that The9 only take a third of the costs, it's probably much, MUCH more.

( Although, if NetEase manage to do what they're trying to do, Activision-Blizzard will be in the $$$, as they'll be able to publish Starcraft 2 and Diablo 3 there. )

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Comments

  • GinazGinaz Calgary, ABPosts: 1,731Member Uncommon
    Originally posted by Devour


    http://www.wow.com/2009/11/30/the-9-revenues-drop-by-94-after-losing-wow/
    Assuming that The9 make a 1/3 of the profit that Blizzard does, then Blizzard are only making £100,000,000 per year in China, which is fragmentary compared to the rest of the world. Hell, that's assuming that The9 only take a third of the costs, it's probably much, MUCH more.
    ( Although, if NetEase manage to do what they're trying to do, Activision-Blizzard will be in the $$$, as they'll be able to publish Starcraft 2 and Diablo 3 there. )

     

    Well, considering the average Chinese citizen is a hellva lot poorer than people in western Europe and North America, they can't afford to pay as much as we do, which is why they have a different payment method over there.  Its better to make less in China per player than to make nothing at all.

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    Is a man not entitled to the herp of his derp?

    Remember, I live in a world where juggalos and yugioh players are real things.

  • mrroboto40mrroboto40 Ottawa, ONPosts: 657Member

    You also really can't assume they make 1/3 of the Blizzard makes, it's probably a lot smaller than that.

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  • Daffid011Daffid011 Posts: 7,824Member Uncommon

    Just for perspective, most companies would kill to make 100 million pounds in a year in subscriptions and don't even make a fraction of that.

     

     

     

  • XiaokiXiaoki White Pigeon, MIPosts: 2,601Member Uncommon

    Blizzard was making about $80 million per year with The9.

    One of the reasons they did not renew their contract with The9 was because they would make $120 million per year with NetEase.

    So, yeah, even though China accounted for about half of WoWs subscribers they contributed less than 10% of WoWs yearly revenue.

  • DaruleDarule Boston, MAPosts: 39Member

    I didn't know WOW China was accounted for so little profit of Blizzard's annual earnings. I thought average players in China play about $10 a month which isn't far off the international benchmark.

    It's probably because CD Keys are for free for all expansions in China.

  • someforumguysomeforumguy HomePosts: 3,538Member Uncommon
    Originally posted by Devour

    http://www.wow.com/2009/11/30/the-9-revenues-drop-by-94-after-losing-wow/
    Assuming that The9 make a 1/3 of the profit that Blizzard does, then Blizzard are only making £100,000,000 per year in China, which is fragmentary compared to the rest of the world. Hell, that's assuming that The9 only take a third of the costs, it's probably much, MUCH more.
    ( Although, if NetEase manage to do what they're trying to do, Activision-Blizzard will be in the $$$, as they'll be able to publish Starcraft 2 and Diablo 3 there. )
    How can you call that not much money. Even a company that has a yearly revenue of billions, still call 100mill a lot. Because its a small percentage, doesnt automatically make it a small nominal amount or not important. Wtf!
  • Pappy13Pappy13 St. Charles, MOPosts: 2,138Member
    Originally posted by Darule


    I didn't know WOW China was accounted for so little profit of Blizzard's annual earnings. I thought average players in China play about $10 a month which isn't far off the international benchmark.
    It's probably because CD Keys are for free for all expansions in China.



     

    No, it's because all of the money that Blizzard makes in China is pure PROFIT.  Blizzard doesn't own any servers in China.  They don't have to pay for customer support in China.  They have no expenses in China other than maybe advertising as far as I know.  So although the income from China only accounts for 9% of the total revenue, it accounts for a much larger percentage of the PROFIT that Blizzard makes.

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  • ThomasN7ThomasN7 87.18.7.148 1, NJPosts: 6,690Member
    Originally posted by Pappy13

    Originally posted by Darule


    I didn't know WOW China was accounted for so little profit of Blizzard's annual earnings. I thought average players in China play about $10 a month which isn't far off the international benchmark.
    It's probably because CD Keys are for free for all expansions in China.



     

    No, it's because all of the money that Blizzard makes in China is pure PROFIT.  Blizzard doesn't own any servers in China.  They don't have to pay for customer support in China.  They have no expenses in China other than maybe advertising as far as I know.  So although the income from China only accounts for 9% of the total revenue, it accounts for a much larger percentage of the PROFIT that Blizzard makes.



     

    This is why Blizzard is so eager to get back into the Chinese market because they do not have to shell out as much and yes they make a ton more because of this. They also can can use Chinese population as an appealing marketing tool for gamers once again. Notice how Blizzard has zipped the lip on how many subscribers they really have now.

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  • drbaltazardrbaltazar drummondville, QCPosts: 7,987Member

    nha blizzard is about to pull out of china!chinese are just too gready !its not worth the effort for blizzard they tried with the thenine

    thenine wasnt more connected then blizzard so they re trying with netease same thing

    basicly what chinese do is give us your idea we ll do it now you can go home

    its not protecting their market its completelly closing their market if its coming out from other country

    but i got news for you if asia doesnt deal with blizzard or google they ll be done dealling with the rest of the world too

    because lot of countrys are turning to other part of the world a lot less complicated and for asia that would kill their economy a lot more since a lot of product they manufacture they cant sell to their own country product they make is just plain too expensive to their average citizen.

    america is slowly turning to south  america others to india etc just as many people but will to do so fair deal

    most country are finding out that asia do business only one way and its to sell you their stuff .what they buy is natural ressource

    nothing else.those can be sold anywhere else in the world.

     

  • Yeah, if I only made £100,000,000 a year I'd have to get a smaller apartment.

  • lisubablisubab redmon, ORPosts: 670Member
    Originally posted by drbaltazar


    nha blizzard is about to pull out of china!chinese are just too gready !its not worth the effort for blizzard they tried with the thenine
    thenine wasnt more connected then blizzard so they re trying with netease same thing
    basicly what chinese do is give us your idea we ll do it now you can go home
    its not protecting their market its completelly closing their market if its coming out from other country
    but i got news for you if asia doesnt deal with blizzard or google they ll be done dealling with the rest of the world too
    because lot of countrys are turning to other part of the world a lot less complicated and for asia that would kill their economy a lot more since a lot of product they manufacture they cant sell to their own country product they make is just plain too expensive to their average citizen.
    america is slowly turning to south  america others to india etc just as many people but will to do so fair deal
    most country are finding out that asia do business only one way and its to sell you their stuff .what they buy is natural ressource
    nothing else.those can be sold anywhere else in the world.
     

     

    Oh really?  Have you been in China lately?  Ever go to the shops? restaurants?  Check the backorder list for premium cars?  Cars selling above 1million yuan (around 160-170K US$).  You need to wait patiently in some parts of China, if you want to buy a new model of famous brand.

    China is moving towards internal consumption as the momentum to sustain growth.  Export is not the key any more.  Actually, they are removing almost all export subsidies in Southern China.  The average Chinese citizen?  The expensive stuffs are made for the rich.  The average stuffs are made for the average.  The expensive stuffs are obviously too expensive for the average citizen.  That surprised you?

    Way back in the days when I still run a company back home, the average citizens were not queuing up for a trip in the shuttle.  Punt intended.

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