World of Warcraft has once again lost more “subscribers” in a few months than most (close to all) MMOs could ever dream of having. They dropped something like 3 million subscribers in a three month period, marking the sharpest decline in the history of the game. I think they remain at a lowly 7.1 million? All according to plan.
Over the years I have been saying that WoW’s slow decline is in Blizzard’s best interest, and a decline in WoW subscribers is ultimately beneficial for them financially, and realistically their goal. You’d think I was crazy back then given the responses I got in the comments, but look at the landscape of Blizzard’s revenue stream now.
Looking at Blizzard’s financials, over 40% of their revenue stream came from non-WoW games, and that’s estimated to exceed 50% this year. I bet that by the time Overwatch launches, their non-WoW revenue will be closing in on the 70% mark. Blizzard is diversifying, and the money isn’t in WoW anymore, or at least for much longer. They’ve said it themselves, “Strong recurring franchise diversification is in process inside the Blizzard portfolio, which sets us up for a bright 2016 and beyond.”
This diversification is not only a great business move for Blizzard, but a great outlook for us players. We get more games to enjoy in a variety of flavors, and we’ll start to see developers trying new things in order to appeal to the new ‘variety is the spice of life’. Soon, one day, there will no longer be just one giant behemoth of a game strangling the MMO industry. Mark my words, we are returning to an era where there are fewer players per game with more games available offering a variety of playstyles. This day is coming; it must come.
The sun never sets on Blizzard’s empire. So yes, WoW’s decline is good for Blizzard. Those players can now be transitioned into other titles where they will spend more money more often. All according to plan indeed.