Blizzard Entertainment for years has demonstrated the ability to create groundbreaking games while playing ‘the monetization and community building and keeping it interesting’ game.
From early hits like Warcraft and Diablo to global phenomena like World of Warcraft, Blizzard cemented itself as a titan in the gaming world. However, what business models has this success stemmed from and how has it been practiced in other franchises at Blizzard and indeed in the gaming industry at large? Continue reading to learn more about each of these strategies.
Blizzard’s Core Strategy: Quality Over Quantity
Perhaps one of the most recognizable business strategies at Blizzard is that quality trumps quantity. Rather than bringing out game after game in an effort to dominate the market as fast as possible, Blizzard works on a limited number of games and will spend as much time as it needs to on each one. This approach leads to developed and polished games that usually have long durability and many followers.
For example, World of Warcraft took a long time to develop, yet just as soon as it came out that game ruled over the MMORPG genre. This model allowed Blizzard to create brand devotion; people waited for every release eagerly, no matter whether it was an addition to the game or a new game. The same approach can be seen in Diablo III, which although started with a lot of flaws was receiving years of updates to capture the fans back due to Blizzard’s constant focus on quality and users.
Subscription Models and Microtransactions: WoW’s Game-Changer
The primary strategic business decision of Blizzard was to adopt a subscription model for World of WarCraft. Though subscription models were not new to MMORPGs in 2004, WoW made a very lucrative business model from it. WoW reached about 12 subscribers at its peak, all of who had subscribed to the game at a monthly subscription fee. This enabled Blizzard to get a continuous flow of revenue that could be injected into the game.
Furthermore, Blizzard did it right where microtransactions were concerned when used to support the game. Currently, WoW’s in-game store includes mounts, pets, and appearance options, non-appearance-like services that players can purchase, including a character boost and a server transfer. These are known as micro-transactions and are part of Blizzard’s WoW services these help generate consistent income from subscriptions and new players.
The Power of Franchises: Cultivating and Expanding IPs
Blizzard knew right from the start that building up great IPs would be instrumental in delivering sustained growth. They are capable of developing detailed environments and intriguing stories since games first and foremost are sequels, extensions, toys, and hobbies, as well as movie and show spin-offs.
Just take Warcraft, StarCraft, and Diablo alone, and you can amass millions of avid fan global followers. These IPs did not just stay in the gaming space as we will see throughout this section. For example, World of Warcraft now has novels, comic strips, and even a full-length movie. This brand extension not only fortified Blizzard in the market but also made new revenue points of sale apart from the usual game merchandise.
Game as a Service (GaaS): Ongoing Engagement
Perhaps one of the most recognizable business strategies at Blizzard is that quality trumps quantity. Rather than bringing out game after game after game in an effort to dominate the market as fast as possible, Blizzard works on a limited number of games and will spend as much time as it needs to on each one. This approach leads to developed and polished games that usually have long durability and many followers.
For example, World of Warcraft took a long time to develop, yet just as soon as it came out that game ruled over the MMORPG genre. This model allowed Blizzard to create brand devotion; people waited for every release eagerly, no matter whether it was an addition to the game or a new game. The same approach can be seen in Diablo III, which although started with a lot of flaws was receiving years of updates to capture the fans back due to Blizzard’s constant focus on quality and users.
Community-Centric Approach: Building Loyalty
Blizzard has always been particularly successful at cultivating a hardcore and active fanbase for their games. Ones such as BlizzCon, the World of Warcraft has allowed Blizzard to engage with fanship through conventions and premiering of new titles/games, expansions, and products as well as generating buzz through its current ones. It is also serves as a marketing tool for the company to statement their latest news to players and make them be the part of the Blizzard family.
Other gaming companies have copied this example of having similar community-based events in place. For instance, Fortnite, a game created by Epic Games, actually features live performances and concerts regularly which are viewed by millions and greatly help to keep players engaged and loyal to the game brand.
Conclusion
The principles, that have contributed to the business success of Blizzard Entertainment are the quality, new approaches to making money, the community-oriented approach, and the construction of powerful series. While it might have relied on World of Warcraft, Blizzard has also shown that strategic corporate planning on games like Overwatch or Diablo series not only makes much of an impact in the industry but also proves profitable many years down the line.