Modern Warfare 2 to Make $140M from DLC

Modern Warfare 2 to Make $140M from DLC

According to Broadpoint AmTech analyst Ben Schachter, Activision could make $140 million off of upcoming Call of Duty: Modern Warfare 2 DLC.

Schachted deduced the $140 million target by studying the sales of Call of Duty: World at War DLC and the immense Call of Duty: Modern Warfare 2 sales numbers.

“Call of Duty DLC can be a solid contributor to Activision’s 2010 EPS,” he wrote. “As with the last two CoD titles, the game itself should maintain its USD 60 launch price until the next iteration (due in large part to the value of its online gameplay), but Activision will also benefit significantly from the high-margin DLC potential enabled by the packaged product’s success.”

“We estimate that Activision will generate at least USD 100-140 million in gross revenue from Call of Duty DLC in 2010. After paying the platform holders an estimated 30 per cent, this should generate roughly USD 59-85 million in EBIT and contribute 4-5 cents to EPS.”

And Schachter touches on what form the DLC might take:

“Though the company has not announced anything, we would not be surprised to see the content expand significantly beyond simple map packs to include new missions, modes of play, and in-game items (who wouldn’t pay for a night-time desert assault mission, a 2×2 capture the flag mode, or a very, very sharp bowie knife?) The point is that Call of Duty’s fan base will pay for additional content, and we expect Activision’s Infinity Ward to monetize that throughout 2010,” he said.

As a huge fan of Modern Warfare 2, I will eagerly lap up whatever DLC they throw out there. What about you guys?


Article from Gamersyndrome.com

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avatar Dylan Duarte is a freelance writer who has written for Gamepro, Ripten, and several lesser known sites.