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On November 19 2012 20:41 paralleluniverse wrote:
Yet both mods and posters here seem completely oblivious to this fact. Whenever you make a suggestion or a criticism about the game here, you get hounded by posters and locked by mods who demand that you move it to the B.net forums, because that's apparently where Blizzard reads.
Nobody's saying they don't read TL. The reason posts here that are directly aimed at Blizzard aren't welcome is that it lowers the quality of discussion. Anyone could post their crazy idea for a unit or how they'd like to see the game changed, but none of those ideas are backed up by testing and most of the ideas are just bad. Besides which, they do have their own forums which they systematically monitor for things like bug reports that might be of real value.
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Very good too see this 
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Bowder+Morhaime vs David Kim showmatch please.
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I'm being his fan :D Great stuff, especially monk's questions about his playing in SC2, favorite players and Diablo 3 question is good either XD
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Lol, Morhaime being a bronze terran is definitely funny. I really hope they focus on their economic model so SC2/HotS can become more competitive towards game loke LoL and Dota2
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I really didn't expect much to come out from him. He's not involved in SC2 nearly enough to have any useful insight that we could actually care about. I bet he has no (or very very little) involvement in the SC2 day-to-day operations, and doubt he's even aware of balance issues, patches and whatnot. His political answers is all he can really give, don't blame him
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On November 19 2012 21:25 Hider wrote:
"Well our focus right now is really on the content in Heart of the Swarm, not around what other things we can add necessarily in terms of micro-transactions or business. I think that it's much more important that we focus on making a great expansion and I think the current model is a viable model."
This is completely wrong, unfortunately. It's not really a viable profit-maximiation business model, and if shareholders/analysts paid as much attention Activision Blizzard as they do with Apple and everyone of their products, they would have demanded Mike Morhaimme to be fired immediately.
But please,
Sound like you think HotS is Blizzards only game in dev!
It's very viable model for HotS in relation to all other products being developed within Blizzard. They will sell plenty enough of the game to make it a profitable affair,
It's not like they panic over night and say "Ohhh all the plans we have for releases and business dev the coming 5-6 years must be scrapped, we MUST make HotS micro transaction!!!"
MM is probably the guy sitting safest on his post within ActivisionBlizzard. He doesn't even need to answer economy questions at the conference calls, they know that isn't his strong side. They look to him to make the great games within Blizzard that then can be monetized by ActivisionBlizzard.
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On November 19 2012 21:59 Lysenko wrote:Show nested quote +On November 19 2012 20:41 paralleluniverse wrote:
Yet both mods and posters here seem completely oblivious to this fact. Whenever you make a suggestion or a criticism about the game here, you get hounded by posters and locked by mods who demand that you move it to the B.net forums, because that's apparently where Blizzard reads. Nobody's saying they don't read TL. The reason posts here that are directly aimed at Blizzard aren't welcome is that it lowers the quality of discussion. Anyone could post their crazy idea for a unit or how they'd like to see the game changed, but none of those ideas are backed up by testing and most of the ideas are just bad. Besides which, they do have their own forums which they systematically monitor for things like bug reports that might be of real value.
Threads with ideas don't get closed because the ideas are bad. They get closed because mods want you to post it on the B.net forums, which is allegedly the only place where Blizzard reads. But this continues to get proven wrong.
The irony is that the B.net forums for SC2 are virtually dead. So the only way for ideas to get traction is for a big thread on TL, which then gets linked by posters on the B.net forums. Examples include the B.net sucks threads, the unit pathing in the editor, saving the carrier, the upcoming infestor nerf, etc.
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I'm curious to see if the retail model is still viable when today all the popular online games seem to be based on micro transactions
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On November 19 2012 22:29 Jiddra wrote:Show nested quote +On November 19 2012 21:25 Hider wrote:
"Well our focus right now is really on the content in Heart of the Swarm, not around what other things we can add necessarily in terms of micro-transactions or business. I think that it's much more important that we focus on making a great expansion and I think the current model is a viable model."
This is completely wrong, unfortunately. It's not really a viable profit-maximiation business model, and if shareholders/analysts paid as much attention Activision Blizzard as they do with Apple and everyone of their products, they would have demanded Mike Morhaimme to be fired immediately.
But please, Sound like you think HotS is Blizzards only game in dev! It's very viable model for HotS in relation to all other products being developed within Blizzard. They will sell plenty enough of the game to make it a profitable affair, It's not like they panic over night and say "Ohhh all the plans we have for releases and business dev the coming 5-6 years must be scrapped, we MUST make HotS micro transaction!!!" MM is probably the guy sitting safest on his post within ActivisionBlizzard. He doesn't even need to answer economy questions at the conference calls, they know that isn't his strong side. They look to him to make the great games within Blizzard that then can be monetized by ActivisionBlizzard.
Your first point is completely wrong. As someone who have spend considerable amount of time analyzing the financial statement of ATVI (probably more so than most analysts), I know what they are spending their ressources on (Titan), and unfortunately that's the problem. With the current business model ATVI has little incentive to make a esports-supportive game (as they don't make money out of it). Also Sc2 doesn't appear that much to casuals. Right now Sc2 (and HOTS) is an inbetweener and doesn't do anything particularly well.
Regarding MM. Your right, he is sitting safely and that's my entire point. Analysts/investors do not spend enough time analyzing the business model of Sc2/Wow/d3 (unfortunately). Compare this to the work they do on Apple, and you realize they analyze every single competitor. Every single product in detail etc. With ATVI, unfortunately, they are just kinda lazy/priortizes larger companies.
Eh. It's quite normal that the CFO answers "number" question. But regards to the CEO of Blizzard he should be asked questions regarding business model of each game and how they plan to respond to it. I read probably the most recent 4-5 earnings conferences call. Analysts are not asking the right questions (not just related to sc2). They ask the easy question so they can put a few numbers into their model and then go home early.
Even though Sc2 is just a veyr small part of ATVI, a rework of the sc2 business model could still increase shareholder v alue. Why is it that no single analyst yet has asked that question (which a journalist made yesterday regarding a change in the business model of Sc2).
And this is the problem. Mike Morhaimme is better as a PR guy than the business guy. Blizzard would improve shareholder value by hiring a few MBA'ers, and as a player the experience would probably be improved as well (even though I would have to pay a bit more though).
If analysts/investors spend more time studying/analyzing the company, Mike Morhaimme would be under a lot more pressure.
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Wow such bland answers 
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On November 19 2012 22:59 Hider wrote:Show nested quote +On November 19 2012 22:29 Jiddra wrote:On November 19 2012 21:25 Hider wrote:
"Well our focus right now is really on the content in Heart of the Swarm, not around what other things we can add necessarily in terms of micro-transactions or business. I think that it's much more important that we focus on making a great expansion and I think the current model is a viable model."
This is completely wrong, unfortunately. It's not really a viable profit-maximiation business model, and if shareholders/analysts paid as much attention Activision Blizzard as they do with Apple and everyone of their products, they would have demanded Mike Morhaimme to be fired immediately.
But please, Sound like you think HotS is Blizzards only game in dev! It's very viable model for HotS in relation to all other products being developed within Blizzard. They will sell plenty enough of the game to make it a profitable affair, It's not like they panic over night and say "Ohhh all the plans we have for releases and business dev the coming 5-6 years must be scrapped, we MUST make HotS micro transaction!!!" MM is probably the guy sitting safest on his post within ActivisionBlizzard. He doesn't even need to answer economy questions at the conference calls, they know that isn't his strong side. They look to him to make the great games within Blizzard that then can be monetized by ActivisionBlizzard. Your first point is completely wrong. As someone who have spend considerable amount of time analyzing the financial statement of ATVI (probably more so than most analysts), I know what they are spending their ressources on (Titan), and unfortunately that's the problem. With the current business model ATVI has little incentive to make a esports-supportive game (as they don't make money out of it). Also Sc2 doesn't appear that much to casuals. Right now Sc2 (and HOTS) is an inbetweener and doesn't do anything particularly well. Regarding MM. Your right, he is sitting safely and that's my entire point. Analysts/investors do not spend enough time analyzing the business model of Sc2/Wow/d3 (unfortunately). Compare this to the work they do on Apple, and you realize they analyze every single competitor. Every single product in detail etc. With ATVI, unfortunately, they are just kinda lazy/priortizes larger companies. Eh. It's quite normal that the CFO answers "number" question. But regards to the CEO of Blizzard he should be asked questions regarding business model of each game and how they plan to respond to it. I read probably the most recent 4-5 earnings conferences call. Analysts are not asking the right questions (not just related to sc2). They ask the easy question so they can put a few numbers into their model and then go home early. Even though Sc2 is just a veyr small part of ATVI, a rework of the sc2 business model could still increase shareholder v alue. Why is it that no single analyst yet has asked that question (which a journalist made yesterday regarding a change in the business model of Sc2). And this is the problem. Mike Morhaimme is better as a PR guy than the business guy. Blizzard would improve shareholder value by hiring a few MBA'ers, and as a player the experience would probably be improved as well (even though I would have to pay a bit more though). If analysts/investors spend more time studying/analyzing the company, Mike Morhaimme would be under a lot more pressure.
Milking money out of a game is good for the players and good for the game? No, it's good for shareholder's profit though.
There could be nothing worse for the game than for it to be turned into the standard free to play microtransaction model that makes DotA 2 heroes look like April's fool jokes, and locks LoL heroes behind a paywall. Or where they basically sell items that add power such as in CoD or in virtually every single MMO, under the excuse that it adds so little power that it's somehow OK.
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Hider you got any source that free 2 play makes more money than box sales?
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On November 19 2012 23:11 Trumpstyle wrote:
Hider you got any source that free 2 play makes more money than box sales?
I would like to see this as well
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Hah, maybe some TL bias here, but I found monk's questions by far the best. Great to hear something personal about MM, rather than just more questions about how Blizzard is supporting eSports and SC2 in developing countries. Sure, we need a few questions about that, but it just went on and on. Monk's questions really got to the essence: who are you? And do you listen to us?
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Love the interview.
I am pleasently surprised how I agreed and liked most (all?) of the answers, as answered by a COE.
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On November 19 2012 23:11 paralleluniverse wrote:Show nested quote +On November 19 2012 22:59 Hider wrote:On November 19 2012 22:29 Jiddra wrote:On November 19 2012 21:25 Hider wrote:
"Well our focus right now is really on the content in Heart of the Swarm, not around what other things we can add necessarily in terms of micro-transactions or business. I think that it's much more important that we focus on making a great expansion and I think the current model is a viable model."
This is completely wrong, unfortunately. It's not really a viable profit-maximiation business model, and if shareholders/analysts paid as much attention Activision Blizzard as they do with Apple and everyone of their products, they would have demanded Mike Morhaimme to be fired immediately.
But please, Sound like you think HotS is Blizzards only game in dev! It's very viable model for HotS in relation to all other products being developed within Blizzard. They will sell plenty enough of the game to make it a profitable affair, It's not like they panic over night and say "Ohhh all the plans we have for releases and business dev the coming 5-6 years must be scrapped, we MUST make HotS micro transaction!!!" MM is probably the guy sitting safest on his post within ActivisionBlizzard. He doesn't even need to answer economy questions at the conference calls, they know that isn't his strong side. They look to him to make the great games within Blizzard that then can be monetized by ActivisionBlizzard. Your first point is completely wrong. As someone who have spend considerable amount of time analyzing the financial statement of ATVI (probably more so than most analysts), I know what they are spending their ressources on (Titan), and unfortunately that's the problem. With the current business model ATVI has little incentive to make a esports-supportive game (as they don't make money out of it). Also Sc2 doesn't appear that much to casuals. Right now Sc2 (and HOTS) is an inbetweener and doesn't do anything particularly well. Regarding MM. Your right, he is sitting safely and that's my entire point. Analysts/investors do not spend enough time analyzing the business model of Sc2/Wow/d3 (unfortunately). Compare this to the work they do on Apple, and you realize they analyze every single competitor. Every single product in detail etc. With ATVI, unfortunately, they are just kinda lazy/priortizes larger companies. Eh. It's quite normal that the CFO answers "number" question. But regards to the CEO of Blizzard he should be asked questions regarding business model of each game and how they plan to respond to it. I read probably the most recent 4-5 earnings conferences call. Analysts are not asking the right questions (not just related to sc2). They ask the easy question so they can put a few numbers into their model and then go home early. Even though Sc2 is just a veyr small part of ATVI, a rework of the sc2 business model could still increase shareholder v alue. Why is it that no single analyst yet has asked that question (which a journalist made yesterday regarding a change in the business model of Sc2). And this is the problem. Mike Morhaimme is better as a PR guy than the business guy. Blizzard would improve shareholder value by hiring a few MBA'ers, and as a player the experience would probably be improved as well (even though I would have to pay a bit more though). If analysts/investors spend more time studying/analyzing the company, Mike Morhaimme would be under a lot more pressure. Milking money out of a game is good for the players and good for the game? No, it's good for shareholder's profit though. There could be nothing worse for the game than for it to be turned into the standard free to play microtransaction model that makes DotA 2 heroes look like April's fool jokes, and locks LoL heroes behind a paywall. Or where they basically sell items that add power such as in CoD or in virtually every single MMO, under the excuse that it adds so little power that it's somehow OK.
Depends on how they do it. If ATVI just charges a higher price and doesn't offer anything besides that, your right. Bad for customers. But what I suggest is that ATVI needs to monetize esports. In return they give devote more ressources to updating the game etc. Hire progamers as developers. RIght now (despite their constant PR), Blizzard don't have an incentive to do that as they barely make any money out of esports.
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On November 19 2012 23:11 Trumpstyle wrote:
Hider you got any source that free 2 play makes more money than box sales?
Never suggested that, however it's an option.
What the goal should be (for the business model of sc2) is to earn extra money out of those who devote their life to sc2. LIke I did for 1½ years. Why did I pay the same price as a casual who played the campaign for 20 hours?
WOW is great for both shareholders and customers. Sc2, however, is an inbetweener unfortunately. (Note, I still love the game and I get addicted to it very easily as I do not have ladder anxiety... But objectively it's not that good)
Blizzard goal should be to find away to get me to pay 200$+ over my lifetime as an sc2 player (or something like that), and a secondary goal should be to maximize profit from casuals.
Secondary goal is probably a lot more difficult as it requires more changes than just the business model
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On November 19 2012 23:26 Hider wrote:Show nested quote +On November 19 2012 23:11 paralleluniverse wrote:On November 19 2012 22:59 Hider wrote:On November 19 2012 22:29 Jiddra wrote:On November 19 2012 21:25 Hider wrote:
"Well our focus right now is really on the content in Heart of the Swarm, not around what other things we can add necessarily in terms of micro-transactions or business. I think that it's much more important that we focus on making a great expansion and I think the current model is a viable model."
This is completely wrong, unfortunately. It's not really a viable profit-maximiation business model, and if shareholders/analysts paid as much attention Activision Blizzard as they do with Apple and everyone of their products, they would have demanded Mike Morhaimme to be fired immediately.
But please, Sound like you think HotS is Blizzards only game in dev! It's very viable model for HotS in relation to all other products being developed within Blizzard. They will sell plenty enough of the game to make it a profitable affair, It's not like they panic over night and say "Ohhh all the plans we have for releases and business dev the coming 5-6 years must be scrapped, we MUST make HotS micro transaction!!!" MM is probably the guy sitting safest on his post within ActivisionBlizzard. He doesn't even need to answer economy questions at the conference calls, they know that isn't his strong side. They look to him to make the great games within Blizzard that then can be monetized by ActivisionBlizzard. Your first point is completely wrong. As someone who have spend considerable amount of time analyzing the financial statement of ATVI (probably more so than most analysts), I know what they are spending their ressources on (Titan), and unfortunately that's the problem. With the current business model ATVI has little incentive to make a esports-supportive game (as they don't make money out of it). Also Sc2 doesn't appear that much to casuals. Right now Sc2 (and HOTS) is an inbetweener and doesn't do anything particularly well. Regarding MM. Your right, he is sitting safely and that's my entire point. Analysts/investors do not spend enough time analyzing the business model of Sc2/Wow/d3 (unfortunately). Compare this to the work they do on Apple, and you realize they analyze every single competitor. Every single product in detail etc. With ATVI, unfortunately, they are just kinda lazy/priortizes larger companies. Eh. It's quite normal that the CFO answers "number" question. But regards to the CEO of Blizzard he should be asked questions regarding business model of each game and how they plan to respond to it. I read probably the most recent 4-5 earnings conferences call. Analysts are not asking the right questions (not just related to sc2). They ask the easy question so they can put a few numbers into their model and then go home early. Even though Sc2 is just a veyr small part of ATVI, a rework of the sc2 business model could still increase shareholder v alue. Why is it that no single analyst yet has asked that question (which a journalist made yesterday regarding a change in the business model of Sc2). And this is the problem. Mike Morhaimme is better as a PR guy than the business guy. Blizzard would improve shareholder value by hiring a few MBA'ers, and as a player the experience would probably be improved as well (even though I would have to pay a bit more though). If analysts/investors spend more time studying/analyzing the company, Mike Morhaimme would be under a lot more pressure. Milking money out of a game is good for the players and good for the game? No, it's good for shareholder's profit though. There could be nothing worse for the game than for it to be turned into the standard free to play microtransaction model that makes DotA 2 heroes look like April's fool jokes, and locks LoL heroes behind a paywall. Or where they basically sell items that add power such as in CoD or in virtually every single MMO, under the excuse that it adds so little power that it's somehow OK. Depends on how they do it. If ATVI just charges a higher price and doesn't offer anything besides that, your right. Bad for customers. But what I suggest is that ATVI needs to monetize esports. In return they give devote more ressources to updating the game etc. Hire progamers as developers. RIght now (despite their constant PR), Blizzard don't have an incentive to do that as they barely make any money out of esports.
Blizzard is a big, rich company, yet you act as if they cannot afford to hire pro gamers. In fact, there is absolutely no reason why hiring a pro gamer would be anymore expensive than hiring any random developer. So there's no reason to think that money is holding them back there. Blizzard makes money based on royalties for esports tournaments. How do you know that they "barely make any money out of esports"?
And even if that's true, that doesn't mean it's a bad business strategy. They may be trying to increase their market share at the expense of short term profits. This is a common strategy. For example, some game consoles are sold at a loss, the Kindle is also sold at a loss to maximize Amazon's market share.
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@ Hider
The thing is Starcraft 2 is way, way harder to make f2p and profitable via microtransactions than DotA-like games are.
That's why they're so reluctant to turn Sc2 into some f2p platform and they've mentioned this more than once. If a business model suits a game they'll gladly apply it. For example they DO consider including microtransactions into Blizzard Allstars if I'm not mistaken. Again, it makes sense and is an obvious choice for that genre.
An RTS like Starcraft 2 just doesn't lend itself to that business model nearly as much.
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EPT
