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WoW Has Churn Rate of 4-5%

In a recent article on Gamasutra, Mike Hickey -- an industry analyst from Janco Partners -- has been examining Blizzard's World of Warcraft success as the stock market prepares for the merger of two video game giants.

Hickey's research provided him with some very interesting information on World of Warcraft's subscriber churn rate, with it coming in at a reported 4 to 5% per month -- staggeringly low, much more so than many other subscription-based services.

Hickey also raised Activision's share price from $20 to $35 in advance of the merger and noted: "We expect the Company’s WoW franchise will provide a strong source of continued growth. However, with a multitude of competitive MMOs positioned to enter the channel, potential subscriber fatigue and competitive options could undermine subscriber growth projections."

While brief, it's a very interesting analysis of World of Warcraft's success and what it will no doubt mean for Activision Blizzard's success on the stock market -- a good example of Vivendi's comments of this "bringing out the real value in Blizzard."

To read more, head over to the Gamasutra story.

Comments

  • #1

    yeah right they all come back after a month or so anyway :P

  • #2

    Blizzard did say with the last release of their subscriber base of 9 million and change that was only active accounts that were being paid for. Now that does not mean that all those accounts are still being played but it they are still "active".

  • #3

    The "churn rate" mentioned in the article is the "gross churn rate" ie. just the number of people quitting, without taking into account new users offsetting that.

    I haven't seen any specific figures to show a trend in new users vs. people quitting, but Blizzard's announced figures show a growth in total subscribers every year since launch.

    It's almost impossible to read meaning into the Blizzard figures though, as they don't say whether that includes dormant accounts (people who have stopped playing) and it certainly includes the expansions into new continents.

  • #4

    I wonder if there is a percentage of new users each month, and how much that offsets or overtakes that churn rate?

  • #5

    To head off the question in advance, churn rate refers to the percentage of subscribers that quit using a service each month, so in this case the percentage of players that quit and cancel their WoW subscription.

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