WoW dropped another 800k subs bringing it down to a lowly 6.8 million. Remember my crazy assertion that Blizzard is sorta okay with WoW slowly fading away? Yeah, I’m still crazy; I still think that’s the case. I’m not even close to hinting at even the remote possibility that they aren’t interested in making money — no, quite the opposite. I truly believe Activision Blizzard knows they can make more money by phasing WoW out and phasing in other more profitable products.
WoW is Expensive
I can only imagine how expensive it is to continually develop and support World of WarCraft. Very, very few products ever last for 10+ years with this level of continued support before being phased out for something new. Compared to something like Hearthstone or Diablo, WoW has to be sucking out cash like crazy. That’s fine since it also rains money down on the company, but there is a ratio and a point of inflection where I guarantee top brass want something a little more efficient. I face the same issues at my company right now where I’m trying to convince a team that it’s not okay to push our $18,000 product if we only make $2,000 profit — push the $9,000 product where we make $6,000 profit in 1/3 the time please. No seriously… do it.
Momentum is Drying Up
Warlords of Draenor is still slated for sometime near the end of the year. This waiting game is totally intentional. Guess what happens when Blizzard fans don’t log in to play WoW? Many of them will try one of the other great games Blizzard has to offer. The strategists at Blizzard are incredibly insightful and know that the competition sucks right now — if you didn’t know that, it does. The landscape for transitioning customers right now is beautiful to behold.
Blizzard’s Future isn’t WoW
Blizzard has become synonymous with WoW. People talk about WoW as doing things like WoW is the primary entity. For a while that’s okay to be known by your product, but after a while the team starts to squirm because that product cannot last forever, and when it does finally go away if you have absolutely no identity or loyalty to your company’s brand… ouch. Lucky for Blizzard they have immense corporate brand identity, but that doesn’t change the basic underlying principles of this lesson
There will come a time when Blizzard is known for something else. They’ll want those 6.8 million+ people to transition to support a newer product with a longer shelf life. You can’t just start the moment the product releases. It takes time, and there’s no better way to start than to ever-so-slowly sunset a game without most people even realizing it’s happening.