The Most Expensive Video Game in History: Activision's "Destiny" Gamble

"Destiny" is set to cost $500 million. Move over, Hollywood: Video games are now entertainment's biggest-budget spectacles.

Jun 22, 2014 at 5:30PM

All sorts of big video-game announcements came out of this month's E3 conference. A company making one of the biggest splashes was Bungie, the studio that created the Halo series that became the Xbox's marquee franchise. The studio separated from Microsoft (NASDAQ:MSFT) in 2007 and produced its last game in the series -- Halo: Reach -- back in 2010. 

Since breaking from Microsoft, the studio signed a 10-year publishing deal with Activision Blizzard (NASDAQ:ATVI). The first game under this agreement, Destiny, is slated for a September release. Destiny is a hugely important game for a simple reason: It's the most expensive game ever made. Activision's CEO let slip at an investing conference that he believe Destiny will cost $500 million in development costs and marketing. That's more than $200 million more in costs than the next most expensive game, Grand Theft Auto 5. 

Aside from the massive costs sunk into the project, Destiny is a risk because it's creating an ambitious melding of a first-person shooter and role-playing game. Luckily for Activision Blizzard, most reviews of Destiny were largely positive. With Call of Duty appearing to be a franchise that's slipping in popularity, it's important that Destiny could become another marquee bankable franchise for the company. 

In this episode of The Next, Motley Fool tech analyst Eric Bleeker and Rule Breakers analyst Simon Erickson talk about this year's E3, and also some of the disappointment around Microsoft. As expected, there won't be a new Halo game in 2014, which only compounds the Xbox One's early struggles. 

To see their full thoughts, watch the following video. 

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Eric Bleeker, CFA has no position in any stocks mentioned. Simon Erickson owns shares of Apple. The Motley Fool recommends Activision Blizzard,, and Apple and owns shares of Activision Blizzard,, Apple, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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