After 7 years of development and little information released, Blizzard canceled the MMO Titan, claiming they “didn’t find the fun,” and for a company that values fun above all else, the cancellation of a large-scale project is significant and made the news. The game will never see the light of day, and analysts in the US financial market have commented that the game may have cost the company a fortune. The website Games Industry talked to some analysts, and for the Michael Pachter (famous Wedbush Securities analyst), if we are going to analyze the cost of development with a team of 100 to 200 people, we have 100 thousand dollars a year for each, reaching a value between 70 to 140 million dollars, and he was sad that it took Blizzard so long to realize that the game would not go forward, and he hoped the game would go back to the “drawing board”. The game it was restarted in 2013but apparently the development did not work out.
Another issue is that today the MMO market has radically changed compared to 7 years ago. In the past, people were willing to pay a subscription for World of Warcraft, but since then, other cheaper options have emerged with lower development costs. Evolution of mobile devices, free MOBAs like League of Legends (which manages to make huge revenues with skins and regular champions) and the free to play MMOsand this may have weighed on the company’s decisions to compete with this market with a new product, apart from Western MMOs that are struggling to grow, such as Star Wars: Old Republic🇧🇷 wildstar it’s the Elder Scrolls Online🇧🇷 O Final Fantasy XIV is having a relative success, but the game went through a total re-development process, but being a Final Fantasy “branded” game ended up having more chances of getting fans and regular revenue for Square-Enix.
already the David Colefrom DFC Intelligence, commented that in the article that 7 years is a long time, and because technologies change quickly, they had to “pull the plug” out of Titan, precisely because the costs have to decrease. O hearthstone, for example, is having a huge success and accounts for 1/3 of Activision Blizzard’s revenue, having a much lower cost of development. David believes that Blizzard can continue to focus on high quality products, but also focus on products with faster development cycles. “The market is no longer a place where there can be games with 7-year development cycles. He’s changing really fast.”
In many cases, this type of cost goes a lot into “research and development”, and the internal technologies can be used in other projects. For a company the size of Blizzard, which has World of Warcraft as its flagship revenue and a huge revenue from Activision (which has the series call of duty), they could afford to have a game with no development deadline, as previously happened with the developments of starcraft and Diablo III🇧🇷 But things are changing. Diablo III is selling well, it launched for consoles and Hearthstone is also gaining prominence, but she knows that World of Warcraft subscriptions drop year after year and expansions every 2 years is being difficult to hold players, who end up migrating to other options. Perhaps the company’s executives may have revised that they need to make games faster to continue having high revenue and continue to maintain Blizzard’s structure.
And in an age where the hearthstone is having success with the F2P model, they may be internally analyzing future projects, already thinking about games with this monetization format. Many subscription MMOs manage to survive today thanks to the F2P model, but there are games that end up forcing the player to pay or have barriers that make it difficult for the player who does not want to pay to play, and he ends up discouraged and leaves for other options. Apart from mobile and tablet games, which are becoming more advanced and are achieving high revenue, Steam promotions are very attractive for players who don’t want to spend a lot. Classic hardcore console and PC gamers aren’t into these types of games as much, but I have to admit that the future of gaming ends up going a bit this way. Will there be space for all types of games and audiences? I believe we do, but depending on the cost of development, it may not be worth it so much for the company to bear all this in the future. In November we will have BlizzCon, and we will know Blizzard’s plans for the coming months.