How consoles would have gouged Diablo 3 over $44 million

Subject: General Tech, Systems | May 29, 2012 - 05:04 PM |
Tagged: diablo iii, consoles, blizzard

Matt Ployhar of Intel has posted on their Software Blogs about how much money in royalties would be given to Microsoft, Sony, or Nintendo if Diablo 3 were published on a console platform. Activision-Blizzard along with a couple of other publishers recently pocket the difference -- but unlike the consoles it is not an actual cost so the publishers can, and many do, lower their prices to the $50 point at launch. It really shows how expensive the seemingly cheaper console platforms really are.

So who would make a device for $805 to sell it for $499 after billions in research, development, and marketing?

Sony does and they get that money back from you in good time -- subtly.

The perception of consoles being a cheaper gaming platform than the PC is just a perception. Over the lifespan of the platform you can pay less for a better experience with a somewhat larger upfront cost on the PC. You are paying a premium with the consoles to experience exclusive titles that are only exclusive because you allowed the platform to charge you to pay the publisher to make it exclusive. Imagine how that cost grows if you own multiple consoles?

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But I find good value in paying extra so that others cannot play too.

Matt Ployhar of the Intel Software Blogs does a very rough calculation of how much Blizzard would have paid Microsoft, Sony, or Nintendo had their game been on a console platform. With 6.3 million units of Diablo 3 sold in the last two weeks and a typical royalty rate of $7-10 per game sale for console platforms the platform owner would take $44-63 million away from Blizzard.

This means that you would have been paying the platform owner $44-63 million to have Diablo 3 be placed on a platform which will be unsupported probably long before you finish with your game.

Blizzard has been selling Diablo 2 since the Nintendo 64 era. Consoles are paid to be disposable, the PC is not.

Source: Intel Blog

May 29, 2012 | 05:51 PM - Posted by icebug

Don't you just love the fact that Blizzard doesn't have to pay royalties on the platform but STILL charge $60 for their games like they do have to pay it?

May 29, 2012 | 06:18 PM - Posted by Anonymous (not verified)

D3 is worth more than 60$, but most people won't pay more than the 60$ price point.

May 29, 2012 | 07:24 PM - Posted by icebug

If you like Diablo specifically as Diablo I can appreciate that you like the game and are willing to pay more than you should have to. I guess I should state that I never really cared for the actual Diablo games anyways however I do enjoy Torchlight. You may see Torchlight II and say "what a crappy game, I'm going to keep playing Diablo" however you can get 4 copies of TL2 for the same price as 1 of D3. I'll take my money where it makes more sense, TL2 for me offers more for the money than D3.

May 29, 2012 | 06:55 PM - Posted by Scott Michaud

Frankly I am okay with paying whatever any given game is worth. There are SOME games which I would be willing to pay $80, $90, $100, or more to acquire. (Diablo III is not one of those games... I actually will likely skip it entirely)

It does not even aggravate me that much if they take different profit margins for each platform... I mean gouging a platform is definitely greasy and annoying -- but that is not really what drives me nuts.

What aggravates me is *why* the royalty needs to be paid.

The royalty must be paid because you allowed a middle man to collect it and -- even worse -- do almost nothing more than tell you what you cannot do and limit the time before the content has no platform to reside on. I should not pay more because someone else let themselves get screwed.

Frankly if video games want to survive as art -- we need them to be on a community-supported platform. The consoles are the exact opposite of that.

August 26, 2012 | 03:39 PM - Posted by Rip (not verified)

1 Finished D3 first week and done playing it forever, while consoles will still get supported for year plus.

2 I dispose of my PC every 16ish months, while I play on my 6 year old box.

March 10, 2013 | 08:21 PM - Posted by jack jenkins (not verified)

Funny, I just saw they were coming out with Diablo 3 on PS4

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