“World of Warcraft” generating upwards of $120 million per month
January 18, 2007So this article about the recent World of Warcraft expansion pack mentions that there are now 8 million subscribers to WoW. I’m not one of them, because I can’t play first-person games. I get extremely motion-sick watching those kind of games, the more violent the on-screen motion the quicker I get to the point where I throw up.
However, I do know a lot of people who play the game. And those people are paying about $15/month to join in the fun. Which means the game’s publisher, Blizzard, is generating about $120 million per month just in subscription fees. Once they start figuring out in-game advertising or sponsorships I’m sure the cash flow will jump even higher.
Bandwidth and server costs are no doubt tens of millions per month and of course there’s development costs for stuff like the expansion pack. But still it’s mind-boggling to think how much free cash flow they must be generating each month even after all the costs are factored out. All that money from people who just want to spend a few hours lost in an online fantasy world.
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