EA Wages Warhammer Against WoW

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In the war-torn digital kingdom of online games, a new billion-dollar rivalry is brewing.

Activision Blizzard (Nasdaq: ATVI) is the incumbent champion of massively multiplayer online role-playing games. (That "MMORPG" acronym just rolls off the tongue!) World of Warcraft has four years of history behind it, and it can boast more than 10 million active players, paying as much as $15 a month for their playtime. That's a lot of moola, amigo.

But here comes an upstart, hoping to steal the hearts, minds, and wallets of some of those WoW players. Electronic Arts (Nasdaq: ERTS) is about a month away from launching Warhammer Online: Age of Reckoning, a game very much in the Warcraft oeuvre, with similar subscription prices and a built-in target demographic of tabletop war game geeks.

WAR is built atop the rich mythology created for Games Workshop's Warhammer universe over the last 25 years, dressed up in the latest graphics and displayed before adoring crowds at the recent E3 gaming gala. If the prelaunch buzz is anywhere near the real attraction of this game, WAR could be a real usurper to WoW's throne. And it only takes about half of that game's subscriber count to produce $1 billion in annual subscription revenue.

Could this be the spark of inspiration that refuels EA's recently uninspiring growth? I think it's a better bet than buying Take-Two Interactive (Nasdaq: TTWO), if that ever happens, thanks to the business power of subscription fees and the creative force of a long-established fictional world.

Activision merged with Blizzard to become a legitimate challenger to EA as the world's largest pure-play game publisher. Now EA strikes back at the very heart of Blizzard's business. Great rivalries often lead to better business decisions, and they can inspire executives and employees alike to do a better job. If anybody should be worried by this clash of the titans, it'd be smaller competitors like Take-Two, Konami (NYSE: KNM), and THQ (Nasdaq: THQI). Game on!

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Fool contributor Anders Bylund holds no position in any of the companies discussed here. You can check out Anders' holdings if you like. Foolish disclosure has been playing Warhammer since the early 1990s.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 08, 2008, at 3:10 PM, KTRNicodemus wrote:

    1) EA is most definitely not an "upstart".

    2) EA has a poor track record with massively multiplayer online games.

    3) While Warhammer does have a rich history and lots of content, that does not mean it will necessarily be popular or successful as a MMORPG. A great deal has to do with design, implementation, and post-launch support and customer service.

    4) Do your homework. Warhammer is not generating excitement among gamers as the hype might lead you to believe. Look to industry related blogs and forums to get an accurate temperature.

    5) Warhammer will most likely be profitable in the early months after launch, but I don't expect it to have anywhere near the phenomenal success that Blizzard has had with WoW or long term sustained growth. Look elsewhere for a challenger to that throne.

    6) Feel free to contact me privately if you wish to discuss...

    Robert Rice

    Author: MMO Evolution

  • Report this Comment On August 08, 2008, at 6:48 PM, ParticleBry wrote:

    When it comes to articles like this I say the proof will come soon enough. In the last 4 years there has not been an MMO release that has even scratched WoW. Blizzard has weathered releases such as EQ2, Numerous Dark Age of Camelot expansions, Lord of the Rings Online, City of Heros, City of villians, Pirates of the Burning Sea... and plenty of other highly anticipated releases.

    Yes people will pick up Warhammer and play it, but Activision/Blizzard will feel next to no impact from it. Come the release of the next WoW expansion investors and people that haven't followed blizzard will finally experiance what a Blizzard launch is like (seriously has nobody looked at the pictures of lines hundreds of people long taken at midnight of the Burning Crusade launch across the US at pretty much every gamestop there was?)

  • Report this Comment On August 09, 2008, at 7:58 PM, Antinate wrote:

    So I registered just to respond to these two comments. I won't be ignorant and say that WoW hasn't been successful, because it has, and I've played WoW for 3 years. The thing about WoW is that, in face of all these newer MMOs like Vanguard and Lord of the Rings Online and all, Blizzard honestly has never faced any credible competition.

    What a lot of people fail to realize is that a large number of WoW players simply don't find the game fun despite their subscription, and they are hanging on until they can find the next best thing. To say that Warhammer won't sucker punch Blizzard is foolish at best. Even Blizzard doesn't realize this, and thus it tries to whip out as many new features as it can to somewhat soften the blow, a few of the new features actually stolen from Warhammer if I may be so brave to do so, though it's not surprising considering that WoW is just one big thievery.

    Here's a fun fact: The World of Warcraft players that aren't holding on until the next game are holding on until Wrath of the Lich King, and once they realize that the game does nothing to set a new standard like Warhammer is and that it's more of the same, watch out, Blizzard.

  • Report this Comment On August 09, 2008, at 8:40 PM, reduxs wrote:

    I'm an avid World of Warcraft player as well as an Activision investor, and I can honestly say there is much less hype and excitement surrounding EA's Warhammer than there was with Age of Conan, which for the most part failed miserably. People are spending a lot more time talking about the upcoming WoW expansion, Wrath of the Lich King, than they are about Age of Conan.

    People seem to fail to realize what makes WoW so popular. For one, a lot of people that play the game grew up playing the Warcraft series, so we can identify with all of the events happening in the game, and it enhances the gameplay experience that much more. Furthermore, they have excellent product quality control, customer support, and they actively listen and adjust the game based on feedback from the community at large. I firmly believe that there is nothing planned or in development that can dethrone WoW, and by the time someone does (if ever), WoW's next generation MMORPG (possibly World of Starcraft) will be nearing completion.

    Call me a homer, but I think you can bank on Activision Blizzard weathering EA's Warhammer "storm" as well.

  • Report this Comment On August 10, 2008, at 12:51 PM, zahnno wrote:

    Well, I share a completely different view with the rest of you. Yes, World of Warcraft was amazing, had a huge fan base from release and from then on it just kept growing. But what many don't realize is that World of Warcraft is becoming boring. I have played World of warcraft for about a year and I can not stand it anymore, sure the raiding is fun, but even raids feel like jobs at times because of the raid schedules. World of Warcraft players are looking for something new. Many people don't realize ( like the comments above) Warhammer has a Huge fan base. Warhammer has been around for 25 years. World of warcraft players who have collected the Warhammer pieces will switch, if you do enough research, you will see that warhammer has a huge anticipation. Just by simply going on to Youtube and viewing the comments under World of warcraft videos. They will all tell the same story. World of Warcraft is getting boring, and Warhammer is just a improved version of it with more to offer. Age of Conan was a disaster. Produced by a freeware company called funcom. It had a lot of potential but the memory leaks and the complete lack of content at the higher levels ruined the game. Age of conan was rushed so it would be able to collect a fan base before Warhammer, and world of warcraft's expansion came out. That's why Age of conan failed. Warhammer has a great concept, but if they have the same problems as Age of Conan it will fail to dethrone world of warcraft.

  • Report this Comment On August 11, 2008, at 6:02 PM, divper wrote:

    Wow is 4 years old and boring as nuts.

    People are playing it cause their friends do. WoW will continue to do well for years cause of that, but there are many many other people who want something else, but of the same quality.

    And while EA may have a poor track record, EA is not making Warhammer.

    Mythic Entertainment is.

    Any Mythic made DAoC, which did not steal the crown from its competitor, EQ.

    It did however take a huge chunk of EQs subscribers, and prosper in its own right.

    DAoC is still lauded as the best PvP MMO to date by most serious MMO PvP'rs. There is a huge faction of PvP fans who are looking forward to Warhammer.

    Warhammer will not steal WoWs crown, and to state that you think it may shows you have not followed the Warhammer design, for from the very beginning Mark Jacobs stated that to do what WoW did they would have to fundamentally change the design and feel of their game. Their goal was not to make a PvE wow killer, but a PvP game that was great.

    And PvP games just dont do as well as PvE games. We all know that. The comparisons are apples to oranges, and just plain ignorant.

  • Report this Comment On October 21, 2008, at 11:12 AM, keagen983 wrote:

    I have played WoW for a little over 3 years now and like the one guy said is very ture WoW did steal alot of warhammers original ideas from there earlier games before wow. i think it would be pretty close... even though wow has over 4 years of altering and fixing "wow" WH will start out a little scetchy but eventually get up there. and not only that they have been creating games since 83 and blizzrd is still technically a the "new kid" on the block in the industry MMORPG.I did play WH as well as WoW it so far is a great game and does everything and some other things i wanted WoW to do but they dont. I there is alot over ppl that hate Wh just because there rumors of they stealing wow profits and ideas in my opinion they are just takeing back with technically rightfully theres in the first place... all im saying WH has alot of influense on wow and that if Wh did not exsist WoW would be a totally different game today... WoW players, if you would like to conversate upon this subject please contact me on my my server malygos Areaoe Allaince,bronzebeard eiella Allaince,thoruim brotherhood eghogria Horde.l please if you are coming on to argue dont tlak to me but please share your opinions with me i would like to hear and talk about what other ppl think.

  • Report this Comment On April 09, 2009, at 6:19 AM, Joeschulman wrote:

    I still think Warhammer is way better then WoW but the numbers do not seem to show it. I wonder if it is because Warhammer does not seem to be advertised as much as Warcraft.

    ___________________

    Joeschulman

    <a href="http://mymmoshop.com/buy/warhammer-online-us/gold/index.php&... Gold</a>

  • Report this Comment On April 09, 2009, at 6:21 AM, Joeschulman wrote:

    I still think Warhammer is way better then WoW but the numbers do not seem to show it. I wonder if it is because Warhammer does not seem to be advertised as much as Warcraft.

    -------------------------------

    joe

    Warhammer Gold

  • Report this Comment On May 18, 2009, at 12:20 AM, johnrocks wrote:

    Anybody know where the World of Warcraft European servers are located? Someone said they are all in Britain but I am not sure. Would they have some in Germany, some in Finland etc?

    I am trying to do a business plan for my own massive multiplayer game and was wonder how they spread out the resources.

    johnrocks

    <a href="http://mymmoshop.com/buy/world-of-warcraft-europe/gold/index... Europe Gold</a>

  • Report this Comment On May 18, 2009, at 12:21 AM, johnrocks wrote:

    Anybody know where the World of Warcraft European servers are located? Someone said they are all in Britain but I am not sure. Would they have some in Germany, some in Finland etc?

    I am trying to do a business plan for my own massive multiplayer game and was wonder how they spread out the resources.

    johnrocks

    [url=http://mymmoshop.com/buy/world-of-warcraft-europe/gold/index... Europe Gold[/url]

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