Blizzcon Is Not For Financial Gain

Speaking at GDC Austin earlier today, Blizzard's Frank Pearce has revealed that despite charging $US125 a head to get into Blizzcon, the annual event still ends up a net loss for the company.

"BlizzCon is operated at a substantial loss for the company," he said. "It's a huge marketing opportunity, so that's the benefit we get out of that. But in terms of any kind of financial gain, it actually is a loss for us."

To give you an idea, then, of how much holding the show costs, consider that 20,000 people bought tickets this year. At $US125 a ticket, that's $US2.5 million. So for the company to make a "substantial loss" on the show, it must cost a lot.

Then again, when you're Blizzard and you get all that WoW subscription money, you can afford to throw lavish parties for your fans every year.

Blizzard incurs 'substantial loss' from BlizzCon [GameSpot]

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Comments

    Blizzcon is basically one huge huge advertisement. They lose money because they delay and production for a time and all.

    But damn, during blizzcon and the weeks before/after... all you hear is blizzard products.

    I haven't really read or heard much about the announcements from Billzcon. I didn't really it whilst it was going, but i still don't remember seeing much articles about big news from the event.

    Considering they would make money from people buying stuff there plus the tickets and sponsorship if they have that, it's pretty lazy/dumb of whoever is in charge to not make any sort of profit.

      **didn't really follow it...

      Maybe you're reception is poor under that rock.

      I heard about Diablo III. A new MMO. Got psyched on Starcraft 2 news (OMG!) and I think there was even mention of WoW expansion.

      They pretty much covered all bases.

    They lose money because they delay production?

    How is this a bad thing? I thought we complain about EA & Co for rushing stuff out before it's ready? Let's face the fact that most things Blizzard release are an absolute gold mine that sell a bazillion copies on launch. I've no doubt that even with a) The no LAN play stuff b) Being split into 3 games c) being delayed to 2010, that Starcraft 2 will be one of the biggest games next year - With the exception of WoW: Cataclysm of course ;)

    @Jay The next WoW expansion (Cataclysm) and the Monk Class in D3 were it from memory. I think they announced who was voicing Kerrigan in SC2 as well? Or was that before Blizzcon?

    Bullcrap, they had the live stream which costs money just to watch, plus the tickets for the event how much could the event cost to set up? They have had a starcraft 2 ready for a year and still people need to pay to see its progress! WOW brings them soo much money so why bother mention the costs! Hurry up with starcraft 2 and Diablo 3 you look at a game like batman and say wow! I can see why this took so long to come out!, but I don't think we could say the same about Starcraft or Diablo. Bottom line you get my $18.95 a month so DON'T mention how much this event costs!!!

      You're complaining... about being told more information?

      Are you retarded?

      They were not complaining, or saying they didn't want to throw it, all they said was that it ran at a net loss. I don't know why they would lie about this.

      Considering how much of a quality event Blizzcon is, with the live performances and the screenings and everything going on, and considering the demand for the tickets, Blizzard could charge a lot more for tickets. You know why they don't? Because thier not assholes.

      What does Batman have to do with an RTS or an RPG?

      Basically, STFU.

        My point was that every company out there must pay for advertisement but stating that it is a loss is stupid!
        And the reason I mention batman was I had to wait a long time for its release but it was graphically stunning upon its release, I apologise for using a game from another genre as an example, you see It was an example of time of development and graphical quality upon release date. And if Blizzard are not "arseholes" why are they charging pay per view prices to watch a live stream? Why don't they mention the net loss price? my guess it must be so small compared to the net yearly profits it would be absurd to mention.

        PS you are "retarded" for thinking companies are not in it for the money.

    I never complained about anything regarding ea... When people work in a company you make money, when people dont work in the company, you are losing man-hours and money... right? I just thought that since they werent working, just hosting blizzcon then they were simply hosting a huge advertisement which would pay off in the long run...

    Substantial loss?

    It's standard marketing practice. Usually to launch a form of advertising to get the market interested and make up for the sales afterwards. Yes Blizzcon is probably held for a loss.. however the massive sales generated at the event by media, net reviews and word of mouth more than makes up for those losses =P

    @Aaron Clement: Ugh... agreed unfortunately. Such is the annoying marketing power of Blizz that they can pull of blatant money grabbing changes and still pull of enough of a massive revenue. Well at least their games are still quality. Heaven help them if they drop the ball on that though xD

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