Topic:
New product planning to develop a new Sci-Fantasy Shooter for Xbox 360 and next generation consoles.
Introduction:
Activision and Bungie, the developer behind Xbox exclusive Halo franchise, has teamed up together to create a new IP code-named “Destiny”. The new product was leaked during a lawsuit over Activision’s Call of Duty franchise. The new product contains a four-part franchise which has games released every other year beginning in the fall of 2013. The games will first be exclusively for the Xbox 360, and then later for the Xbox 720, PlayStation, and the PC. If Bungie meets specific quality and budget milestones, along with a $2.5 million-per-year bonus if “Destiny” scores 90 or better out of 100 on GameRankings.com, the developer would be entitled to 20% to 35% royalties after expenses and development costs for each title. However, if “Destiny” fails to sell at least five million units in the first six months of release Activision has the right to terminate the contract without penalty.
For this new product to have a fighting chance of survival the developers would have to create a Strategic Business Plan which would map out the supporting program formulations and implementation of the new product. Also, the management team would need to evaluate the market segments in order to meet the high expectations of the game scores on GameRankings.com.
Analysis:
Developing a new product in a market that already has long-running franchises such as Call of Duty, Halo, and Assassin’s Creed, can be challenging. Bungie has reportedly been developing a brand new idea to enter into the market. Their Business Strategic Planning touches on developing supporting programs, which do not mirror on any other franchises’ technology or IP. Bungie has said that this will be their position for the foreseeable future. They are carefully managing the details and trying to take preventative measures when it comes to poor implementation. Although the contract was leaked Bungie has no intention of releasing any information early due to the fact that it could be detrimental to the implementation of the new product.
Bungie and Activision must also take into account the concept of Targeting. The developers understand that the game will first exclusively be for the Xbox 360 and they will have to target this market, however, they should look into the size and growth potential when adding the Xbox 720 and also PlayStation and the PC. Bungie will need to research the other competing franchises to make sure that their idea is still following the route to which they desired, a fresh-new ‘sci-fantasy’ shooter that has not been done before. The ease of entering the market with a new idea is not an issue; the issue is to how receptive their audience will be to that idea. Bungie understands that this is a big undertaking however; it will open a lot of doors if this is a success. This leads to better access for the multiple games that would branch off of “Destiny”, which the contract mentions that would be offered in the future.
Lessons Learned:
After doing this analysis I have learned a couple things. First, not to jump the gun, what I am getting at
