Warcraft is a fantastic game that has earned a lot of money. While the franchise is on the decline, the game is still profitable for Activision Blizzard, even with its subscription model. We have compiled the data for you in this article to help you decide if World of Warcraft is worth playing in 2021. The numbers may surprise you! Read on to discover what the developers have done to make the game so profitable.
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World of Warcraft is still worth playing in 2021
If you’ve been playing World of Warcraft for the past five years, you’ve likely noticed how fast the game has gotten. In fact, you may have noticed that the game has undergone several major updates. In addition to the Sanctum of Domination’s latest balancing update, the game has also gotten numerous bug fixes. Despite the recent updates, World of Warcraft is still a highly entertaining MMO. Here are three reasons why.
It’s still visually stunning. World of Warcraft looks better than most games from 2004, and some of its graphics are simply stunning. While there’s no doubt that the game is time consuming, it still retains a strong following amongst fans and newcomers alike. That’s because the game has been around for so long, it’s never felt better. Whether or not World of Warcraft will be worth playing in 2021 is still up to the players.
World of Warcraft is on a decline
The latest figures reveal that subscriptions for the world-famous massively multiplayer online (MMO) game World of Warcraft are on the decline. The game has lost 14% of its subscriber base in the past three months, or 1.3 million players. However, World of Warcraft still has over eight million subscribers worldwide, a staggering figure for an MMO. Most games struggle to hit one million subscribers, so this is good news for the game, which will likely survive to celebrate its tenth anniversary.
In a recent announcement, Activision revealed that it has purchased King, a company that makes mobile games, and is planning to launch an online version of the game. The purchase of the mobile game company will result in a decline in World of Warcraft subscriptions, but the company is confident that this will change over time. However, subscriptions for other MMOs are still a huge problem for Activision, which will be unable to keep up with the game’s sagging numbers.
World of Warcraft is profitable for Activision Blizzard
According to the latest financial report released by Activision Blizzard, the world of Warcraft has proven to be a lucrative business for the game developer. In the third quarter of 2021, the company announced that it earned a profit of $1 billion from in-game bookings. These bookings mainly consist of subscriptions and season passes. The company has not disclosed the specific percentage of profits made from in-game purchases.
In December, Activision Blizzard recorded 240 million monthly active users (MAUs) for its King segment. In total, this segment generated $577 million in revenue, a 15% increase from the year before. The company also reported $242 million in operating profit, resulting in a 42% margin and $857M in operating income. Activision Blizzard expects to reach $693 billion in revenues by 2023.
World of Warcraft’s subscription model
World of Warcraft is a massively popular online video game in which players create an avatar and work together in alliances to complete quests. The game has a subscription model which requires players to pay a monthly fee to access the game. After buying the base game for $50, players can purchase expansions for additional fees, which range from $35 for Burning Crusade to $50 for Legion. Subscriptions have helped the game’s overall revenue, which grew to nearly $40 billion in 2015.
The subscription model has also made the game more profitable for Blizzard. While it costs Blizzard less money in the Asian market, more than half of the company’s subscriptions come from this region. Instead of purchasing a retail copy of the game, Asian users pay a monthly fee for “points” that can be used in game play. The monthly fee is significantly cheaper than the $15 required in the US and Europe.
World of Warcraft’s level cap
One of the most controversial features of World of Warcraft is the level cap. Originally, the level cap was 60, and players could not progress beyond that without buying the expansion packs. However, in recent years, the level cap has been raised by 5 to 10 with each expansion. This may prove to be a limiting factor for players who are used to leveling up at a rapid pace. This may mean that players won’t have the time or patience to complete their adventure if the level cap is reached too early.
A recent Blizzard survey asks customers if they would prefer to see the level cap lowered. The answer was a resounding “no” – as players have gotten tired of paying more money for their World of Warcraft subscriptions. However, the decision to lower the level cap is not a guaranteed one. The company may only lower the cap slightly to give players more time to complete other content.
Activision Blizzard’s financial results
Activision Blizzard released its first-quarter financial results earlier today, and they were better than analysts expected. The company’s net revenues totaled $1.17 billion, compared to $1.45 billion in the same period last year. This increase came from digital channels. Activision also expanded its Skylanders franchise with the release of Skylanders Cloud Patrol on April 5.
The company’s Q4 and full-year financial results topped expectations, but still showed declines in revenue and net income. Net revenues in the fourth quarter were $1.99 billion, and adjusted EPS came in at $525 million. The company also raised its guidance for the full-year, reporting that net revenues would reach $8.66 billion and adjusted earnings per share would hit $1.5 billion. Although overall revenue growth has slowed, Activision Blizzard’s stock is still up 16%, with its shares trading at about $450.