WEBVTT - Blizzard Meltdown

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<v Speaker 1>Welcome to tech Stuff, a production of I Heart Radios

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<v Speaker 1>How Stuff Works. Hey there, and welcome to tech Stuff.

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<v Speaker 1>I'm your host, Jonathan Strickland. I'm an executive producer with

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<v Speaker 1>I Heart Radio and I love all things tech. And

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<v Speaker 1>we are now in the home stretch, my friends, least

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<v Speaker 1>as far as Blizzard Entertainment's story so far is concerned.

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<v Speaker 1>So in our last episode, which was longer for me

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<v Speaker 1>than for you because I had a week of vacation

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<v Speaker 1>between that episode and this one, I ended that episode

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<v Speaker 1>just as Blizzard was launching what would become one of

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<v Speaker 1>its major successes. In fact, it's biggest success, the m

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<v Speaker 1>m O RPG, World of Warcraft. Now, I figured before

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<v Speaker 1>I go on, it would help to explain what an

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<v Speaker 1>m m O RPG is for those of you who

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<v Speaker 1>may not know. So those letters stand for massively multiplayer

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<v Speaker 1>online role playing game. That helps break it down when

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<v Speaker 1>you look at it that way. It's massively multiplayer because

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<v Speaker 1>every server which you connect to over the Internet, that's

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<v Speaker 1>the online parts, So that part sinking care of. But

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<v Speaker 1>every server could have up to thousands of players on

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<v Speaker 1>it um. The early version of World of Warcraft had

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<v Speaker 1>servers that supported between around to players, at least according

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<v Speaker 1>to most accounts. I couldn't find an official Blizzard source

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<v Speaker 1>that nailed it down, but somewhere between players per server.

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<v Speaker 1>Later versions of World of Warcraft would hike that number

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<v Speaker 1>up further, and private servers could potentially hold more players,

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<v Speaker 1>but there's a diminishing returns problem because an overloaded server

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<v Speaker 1>would not run the game as smoothly and could have

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<v Speaker 1>stability issues. On top of that, Blizzard runs this game

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<v Speaker 1>on hundreds of servers, and Blizzard calls them realms, which

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<v Speaker 1>means you and your fellow gamers would have to choose

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<v Speaker 1>which one of your characters will um live on whichever

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<v Speaker 1>realm so as you could all play together. You know,

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<v Speaker 1>if you were on one realm and your friends were

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<v Speaker 1>in a different realm, you would be in different instances

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<v Speaker 1>of these fantasy worlds, so you wouldn't be able to

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<v Speaker 1>interact with each other. The worlds would all be the same,

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<v Speaker 1>but you wouldn't be in the same instance, so you

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<v Speaker 1>had to make sure you were all picking the same

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<v Speaker 1>server to play on. Role playing games, for their part,

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<v Speaker 1>they involve a player taking on the role of a character,

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<v Speaker 1>so to some degree you could argue that all games

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<v Speaker 1>in which you control some sort of avatar are a

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<v Speaker 1>type of role playing game, but stuff like simple arcade

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<v Speaker 1>games like you know, Mario Brothers or something, or action

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<v Speaker 1>adventure games like tomb Raider have some limited role playing,

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<v Speaker 1>but it's very limited. You're really just controlling a digital

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<v Speaker 1>character to maneuver through some sort of environment in those games.

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<v Speaker 1>Role playing games generally have you taken on more of

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<v Speaker 1>the digital avatar's actions, including stuff that isn't so pivotal,

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<v Speaker 1>like jumping or attacking or something. And some people take

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<v Speaker 1>this further than others. They will type out and chat

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<v Speaker 1>using character appropriate phrasing and language, and so they're actually

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<v Speaker 1>acting out a role. In fact, there are some servers

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<v Speaker 1>that were better known for that kind of play. Other

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<v Speaker 1>types of players find that kind of behavior really cringeworthy,

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<v Speaker 1>and they'll just chat and modern language and slang. They'll

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<v Speaker 1>use you know, abbreviations and stuff to communicate things quickly

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<v Speaker 1>to each other, using it more as a strategy game,

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<v Speaker 1>and looking at the game is sort of a series

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<v Speaker 1>of achievements to to accomplish, and not so much of

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<v Speaker 1>playing out a role. Now. I'm not saying either version

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<v Speaker 1>of gameplay is better or worse than the other. They're

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<v Speaker 1>just different and they appeal to different types of gamers.

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<v Speaker 1>I certainly have been the type who have enjoyed role

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<v Speaker 1>playing games where I play a role, But I've also

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<v Speaker 1>been the type who have I've seen some very awkward

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<v Speaker 1>examples of that, and I have wanted to avoid it,

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<v Speaker 1>So I get both schools of thought. Now, these games

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<v Speaker 1>typically have missions in the form of quests that are

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<v Speaker 1>handed out by n PC's or non player characters. These

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<v Speaker 1>are computer controlled characters. Players can also join with other

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<v Speaker 1>like minded players to form their own groups or guilds,

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<v Speaker 1>and they can go on coordinated missions or raids together.

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<v Speaker 1>They can also wage war against players from opposing factions.

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<v Speaker 1>So m m O RPGs present a real challenge to

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<v Speaker 1>game developers because, on the one hand, you want players

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<v Speaker 1>to feel as though their actions matter, and it sort

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<v Speaker 1>of breaks the illusion that you're inhabiting a fantasy world.

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<v Speaker 1>If you, for example, you just finish a quest to

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<v Speaker 1>return I don't know a frying pan to an elf,

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<v Speaker 1>and then that elf turns around and offers that same

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<v Speaker 1>lost frying pan quest to the person who's standing right

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<v Speaker 1>next to you in the game, that kind of breaks

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<v Speaker 1>the illusion because you literally just did that. But on

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<v Speaker 1>the other hand, you can't really let the world change

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<v Speaker 1>that much because not everyone in the game world would

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<v Speaker 1>be there at the same time, right, so they wouldn't

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<v Speaker 1>see the world change until they logged in again, and

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<v Speaker 1>then suddenly there would be content that would be unavailable

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<v Speaker 1>to them because the world had literally changed at that point.

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<v Speaker 1>New players should get the same chance to experience content

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<v Speaker 1>the way everyone else does. Now, most of the time,

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<v Speaker 1>m m O RPGs air on the side of making

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<v Speaker 1>sure everyone gets a chance to play the game the

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<v Speaker 1>same way. That means that the game world tends to

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<v Speaker 1>be pretty static from day to day, with some minor changes,

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<v Speaker 1>like World of Warcraft in particular changes throughout the year

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<v Speaker 1>to reflect certain seasonal things like around Halloween, you'll see

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<v Speaker 1>some seasonally appropriate stuff appearing in the game, but otherwise

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<v Speaker 1>the game world doesn't really change that much unless there's

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<v Speaker 1>a major expansion rolled out, and that is one way

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<v Speaker 1>that game developers can make big changes to the world.

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<v Speaker 1>They can release expansion packs. World of Warcraft has done

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<v Speaker 1>this multiple times, and in some cases has made truly

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<v Speaker 1>dramatic changes to the online world in the process. The

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<v Speaker 1>mythical World and World of Warcraft is called as a roth,

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<v Speaker 1>and the game's events generally take place a few years

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<v Speaker 1>after the events that were depicted in the real time

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<v Speaker 1>strategy game Warcraft three, So that story ends and then

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<v Speaker 1>you typically here that four years later you've got the

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<v Speaker 1>events of World of Warcraft. Early on, when the game

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<v Speaker 1>was first released, players had access to two continents that

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<v Speaker 1>they could explore, but later expansion packs increase the game

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<v Speaker 1>areas dramatically and then transformed some of the existing ones

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<v Speaker 1>quite extensively. Players could choose to play as one of

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<v Speaker 1>several races of beings, which in turn determined which faction

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<v Speaker 1>they belonged to. So in the original game, you could

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<v Speaker 1>be human dwarf or a night elf uh or Gnome

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<v Speaker 1>and that represented the Alliance faction. Or you could play

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<v Speaker 1>as an orc, a troll, a turn which is a

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<v Speaker 1>humanoid with bull like features, sort of like a minotaur

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<v Speaker 1>uh and the or minatar if you prefer, and or

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<v Speaker 1>the Forsaken, which were a race of undead creatures. They

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<v Speaker 1>made up a faction called the Horde, and they still do.

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<v Speaker 1>The choice of Alliance versus Hoarde determines lots of stuff,

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<v Speaker 1>not just who your allies are and who your enemies are,

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<v Speaker 1>but also which areas of the map you are able

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<v Speaker 1>to explore, and which quests will be available to you,

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<v Speaker 1>and which bits of lore you will encounter as you

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<v Speaker 1>play through the game. Later expansion packs would increase the

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<v Speaker 1>number of races players would have access to, as well

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<v Speaker 1>as the types of classes you could play, so not

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<v Speaker 1>just your race, you also have to determine what class

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<v Speaker 1>you are. This is sort of like what type or

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<v Speaker 1>occupation your character has, so a player of either faction

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<v Speaker 1>could become either a druid, a hunter, a major, a priest,

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<v Speaker 1>a rogue, a warlock, or a warrior. And in addition,

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<v Speaker 1>alliance players could be a paladin and Hoarde players could

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<v Speaker 1>be a shaman. Again, later expansion packs would increase the

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<v Speaker 1>number of playable classes, so for a monthly fee, players

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<v Speaker 1>can create a character and go on quests throughout a

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<v Speaker 1>persistent online world. They can form alliances with other players,

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<v Speaker 1>and they can unlock the somewhat complicated and frankly confusing

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<v Speaker 1>story of asar Roth. Now I say confusing only because

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<v Speaker 1>I never really got into these games, so I didn't

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<v Speaker 1>get an introduction, and by now the lore is so

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<v Speaker 1>deep that I can't really suss out what it means.

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<v Speaker 1>Blizzard executives hope that the company would be able to

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<v Speaker 1>sell around four hundred thousand copies of the game within

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<v Speaker 1>its first year of release. They thought, if we can

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<v Speaker 1>sell four hundred thousand copies in the United States eights,

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<v Speaker 1>then this will be a viable business and we can

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<v Speaker 1>run the game. They actually managed to hit four hundred

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<v Speaker 1>thousand copies within the first month. That far outperformed their hopes.

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<v Speaker 1>Of course, that also meant that they had to quickly

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<v Speaker 1>ramp up more servers to host games because they were

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<v Speaker 1>starting to fill up to capacity pretty quickly. That's not

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<v Speaker 1>a bad problem to have, except in those cases where

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<v Speaker 1>players who were joining the game relatively late, we're having

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<v Speaker 1>trouble linking up with friends because their friends were on

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<v Speaker 1>more crowded servers and there was no availability for them

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<v Speaker 1>to log into those same servers. The later expansions, by

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<v Speaker 1>the way, include here are all the names. The Burning Crusade,

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<v Speaker 1>Wreath of the Lynch King Cataclysm. That's the one that

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<v Speaker 1>really dramatically changed the online world and made new areas

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<v Speaker 1>accessible while eliminating some traditional areas in the base game.

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<v Speaker 1>Mists of Pandaria, Warlords of dran Our Legion, Battle of Azaroth,

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<v Speaker 1>and then there's the upcoming shadow Lands expansion. I'm not

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<v Speaker 1>going to go into all of these because honestly, I

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<v Speaker 1>could do a full episode just dedicated to World of

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<v Speaker 1>Warcraft and all these different expansions, but that's really going

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<v Speaker 1>too far. But this was generally away for Blizzard Entertainment

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<v Speaker 1>to provide ongoing content for dedicated players who might otherwise

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<v Speaker 1>have experienced pretty much everything the base game had to offer.

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<v Speaker 1>I mean, if you have advanced your character to as

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<v Speaker 1>maximum a level as is allowable in the game, and

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<v Speaker 1>you've pretty much explored the whole world, you might not

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<v Speaker 1>have any reason to keep playing that game. And this

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<v Speaker 1>is one of the major differences between an m m

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<v Speaker 1>O RPG and a standalone game, right because with a

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<v Speaker 1>traditional standalone game, the old style standalone games, you would

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<v Speaker 1>go out and purchase the game and that would be it.

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<v Speaker 1>You would play the game, and you play it as

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<v Speaker 1>long as you wanted, and maybe you finish it, maybe

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<v Speaker 1>you don't, whatever, but you've already purchased it. You've you've

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<v Speaker 1>laid down your money, and that is the end of

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<v Speaker 1>the revenue stream in that traditional app coach. Companies like

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<v Speaker 1>Blizzard began to develop expansion titles to generate additional revenue. Right,

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<v Speaker 1>you would expand the base game, and typically those expansions

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<v Speaker 1>required the player to own the original copy of the

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<v Speaker 1>game itself. So in those cases, you would sell the

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<v Speaker 1>base game to players. They hopefully love the game, they

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<v Speaker 1>want more of it, So you create an expansion that

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<v Speaker 1>keeps those players happy. They stay in the game world

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<v Speaker 1>they love, and they get to play more content, and

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<v Speaker 1>they buy the expansion. That's the most important part. They

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<v Speaker 1>put down new money to keep playing the game they've

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<v Speaker 1>already played. Plus you might even attract new players to

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<v Speaker 1>your game. But those folks have to buy both the

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<v Speaker 1>expansion and the original game if they want to get

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<v Speaker 1>all the content. They can't just buy the expansion because

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<v Speaker 1>the expansion is built on top of the existing game.

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<v Speaker 1>So with an m m O RPG, you also have

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<v Speaker 1>a monthly subscription fee, and that is a healthy stream

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<v Speaker 1>of revenue coming into the company. At its peak, World

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<v Speaker 1>of Warcraft had about twelve million active player accounts around

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<v Speaker 1>the world. When it originally launched, the base game of

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<v Speaker 1>World of Warcraft cost about fifty dollars, and there was

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<v Speaker 1>also a collector's edition if you wanted to pony up

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<v Speaker 1>eighty bucks a princely Some either version of those games

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<v Speaker 1>included a one month subscription, but after that month you

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<v Speaker 1>would have to subscribe at one of three plans. The

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<v Speaker 1>month to month plan, where you're just paying for each

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<v Speaker 1>month of service as you're playing, was fifteen dollars every month.

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<v Speaker 1>A three month package would knock that down to being

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<v Speaker 1>equivalent to about fourteen dollars per month, and if you

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<v Speaker 1>committed to six months of a package it would be

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<v Speaker 1>it would even out to more like thirteen dollars per month.

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<v Speaker 1>So you know, you buy in bulk and you save money.

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<v Speaker 1>I guess. The game was a huge hit, and so

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<v Speaker 1>every month those subscriptions were rolling in as additional revenue.

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<v Speaker 1>But it was also clear that Blizzard would need to

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<v Speaker 1>keep adding or content to keep the players engaged or

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<v Speaker 1>else they were likely to become bored and disenchanted and

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<v Speaker 1>walk away once their subscription lapsed, and that's where those

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<v Speaker 1>expansions came in. The first one, the Burning Crusade, launched

0:13:13.920 --> 0:13:16.520
<v Speaker 1>three years after the base game it launched in two

0:13:16.520 --> 0:13:19.800
<v Speaker 1>thousand seven. Blizzard had announced it way back in October

0:13:19.800 --> 0:13:23.240
<v Speaker 1>two thousand five and intended to launch it earlier, but

0:13:23.760 --> 0:13:26.040
<v Speaker 1>as is the case with Blizzard, they wanted to make

0:13:26.080 --> 0:13:28.680
<v Speaker 1>sure that the expansion was absolutely as good as it

0:13:28.720 --> 0:13:31.520
<v Speaker 1>could be before they pushed it out the door, so

0:13:31.600 --> 0:13:34.440
<v Speaker 1>they delayed its launch in order to make sure that

0:13:34.520 --> 0:13:36.840
<v Speaker 1>it was right. This is one of those things about

0:13:36.840 --> 0:13:41.000
<v Speaker 1>Blizzard that becomes like a an ongoing thing with that company.

0:13:41.040 --> 0:13:43.760
<v Speaker 1>They frequently would delay launches in order to try and

0:13:43.800 --> 0:13:47.640
<v Speaker 1>get something just right, and I think more often than

0:13:47.720 --> 0:13:52.560
<v Speaker 1>not that ended up benefiting the company, because while it

0:13:52.720 --> 0:13:55.200
<v Speaker 1>is frustrating to see a launch date get pushed back,

0:13:55.520 --> 0:13:58.680
<v Speaker 1>it's way more frustrated to get a broken game and

0:13:58.760 --> 0:14:01.400
<v Speaker 1>have to wait for something to get patch so it's playable.

0:14:02.360 --> 0:14:05.959
<v Speaker 1>The expansion, The Burning Crusade, sold two point four million

0:14:06.000 --> 0:14:08.680
<v Speaker 1>copies in the first twenty four hours. Not keep in

0:14:08.720 --> 0:14:11.880
<v Speaker 1>mind the original game sold four hundred thousand copies in

0:14:11.920 --> 0:14:15.440
<v Speaker 1>the first month. This expansion sold two point four million

0:14:15.520 --> 0:14:19.680
<v Speaker 1>copies in twenty four hours. It broke PC game sale

0:14:19.720 --> 0:14:23.240
<v Speaker 1>records back in uh those days, so it was the

0:14:23.320 --> 0:14:27.320
<v Speaker 1>fastest selling PC game at that time. Now, like the

0:14:27.320 --> 0:14:29.640
<v Speaker 1>base game, players would have to cough up some dough

0:14:29.720 --> 0:14:32.800
<v Speaker 1>to buy this expansion pack like thirty bucks, and then

0:14:32.800 --> 0:14:35.360
<v Speaker 1>they would also then have to maintain their subscription to

0:14:35.400 --> 0:14:39.200
<v Speaker 1>continue playing the game. In two thousand and eleven, Blizzard

0:14:39.360 --> 0:14:42.440
<v Speaker 1>chose to roll in all the content from the Burning

0:14:42.440 --> 0:14:45.560
<v Speaker 1>Crusade into the base game, so if you went and

0:14:45.600 --> 0:14:48.800
<v Speaker 1>bought World of Warcraft from two thousand eleven on, the

0:14:48.840 --> 0:14:51.480
<v Speaker 1>Burning Crusade was included with it, you wouldn't have to

0:14:51.480 --> 0:14:54.200
<v Speaker 1>go out and purchase the expansion pack, and this would

0:14:54.200 --> 0:14:55.920
<v Speaker 1>be the start of a trend that the company would

0:14:55.920 --> 0:14:59.200
<v Speaker 1>follow over time, leading up to the present practice where

0:14:59.360 --> 0:15:03.400
<v Speaker 1>the base game includes all of the previous expansion packs

0:15:03.440 --> 0:15:06.720
<v Speaker 1>except for whatever is the most recent one, and that

0:15:06.760 --> 0:15:09.240
<v Speaker 1>one you would have to purchase to get access to that,

0:15:09.280 --> 0:15:12.080
<v Speaker 1>but everything else would already be included in the base game.

0:15:12.520 --> 0:15:15.040
<v Speaker 1>In two thousand eighteen, the company also made the base

0:15:15.080 --> 0:15:17.560
<v Speaker 1>game free to all players, so you don't even have

0:15:17.640 --> 0:15:20.120
<v Speaker 1>to buy World of Warcraft anymore. You can play the

0:15:20.160 --> 0:15:23.200
<v Speaker 1>game for free, or at least you can get access

0:15:23.240 --> 0:15:24.640
<v Speaker 1>to the game for free, but you have to pay

0:15:24.720 --> 0:15:27.440
<v Speaker 1>for the monthly subscription so that you can actually continue

0:15:27.480 --> 0:15:29.200
<v Speaker 1>to play the game. So if you wanted to play

0:15:29.240 --> 0:15:31.080
<v Speaker 1>World of Warcraft right now, you would not have to

0:15:31.160 --> 0:15:34.760
<v Speaker 1>buy the base game. You would just have to pay

0:15:34.800 --> 0:15:36.760
<v Speaker 1>for the monthly subscription to be able to do so.

0:15:37.040 --> 0:15:40.520
<v Speaker 1>Blizzard also let players advance up to level twenty without

0:15:40.520 --> 0:15:43.600
<v Speaker 1>having to subscribe to the game, giving players a taste,

0:15:43.640 --> 0:15:46.600
<v Speaker 1>maybe just enough to get hooked before the players would

0:15:46.640 --> 0:15:48.960
<v Speaker 1>hit a level cap that they could not go beyond

0:15:49.040 --> 0:15:53.720
<v Speaker 1>without subscribing to the full game. Another thing Blizzard introduced

0:15:53.760 --> 0:15:58.160
<v Speaker 1>in World of Warcraft were micro transactions, which really got

0:15:58.200 --> 0:16:01.400
<v Speaker 1>started back in two thousand nine. The company allowed players

0:16:01.400 --> 0:16:05.000
<v Speaker 1>to spend real world money, you know, cash money, to

0:16:05.120 --> 0:16:09.240
<v Speaker 1>buy in game pets for their characters, and the pets

0:16:09.240 --> 0:16:12.640
<v Speaker 1>were cosmetic additions that meant that they didn't change the

0:16:12.720 --> 0:16:15.520
<v Speaker 1>game play at all. They didn't give advantages to players.

0:16:15.800 --> 0:16:18.880
<v Speaker 1>They're just sort of cute additions to the game. And

0:16:18.920 --> 0:16:21.000
<v Speaker 1>this was when a player could opt to have a

0:16:21.160 --> 0:16:26.120
<v Speaker 1>Pandaran monk with a Pandaran is sort of an anthropomorphic panda.

0:16:26.320 --> 0:16:28.320
<v Speaker 1>You could have that as a pet, which is a

0:16:28.320 --> 0:16:31.760
<v Speaker 1>bit weird because later on, in another expansion, The Mists

0:16:31.760 --> 0:16:37.080
<v Speaker 1>of Pandaria, you could play as a Pandaran. Yikes. Later on,

0:16:37.200 --> 0:16:41.480
<v Speaker 1>Blizzard would introduce many other potential micro transactions, and the

0:16:41.520 --> 0:16:46.360
<v Speaker 1>company didn't do this, you know, universally. Uh, some in

0:16:46.560 --> 0:16:50.080
<v Speaker 1>game items were only sold in certain markets, such as Asia.

0:16:50.320 --> 0:16:55.240
<v Speaker 1>Asia had consumables in World of Warcraft that they could purchase,

0:16:55.400 --> 0:16:58.680
<v Speaker 1>but in other markets that was not an option. So

0:16:59.800 --> 0:17:03.440
<v Speaker 1>it Blizzard was kind of weighing out where these strategies

0:17:03.480 --> 0:17:07.840
<v Speaker 1>would work best, and uh, you know, maximizing that revenue

0:17:08.240 --> 0:17:11.440
<v Speaker 1>the expansion packs and micro transactions would become an enormous

0:17:11.560 --> 0:17:14.879
<v Speaker 1>sea change in the world of video games. Developing games

0:17:15.400 --> 0:17:18.400
<v Speaker 1>is expensive. One estimate for the cost of developing World

0:17:18.400 --> 0:17:21.320
<v Speaker 1>of Warcraft, the base game of World of Warcraft was

0:17:21.320 --> 0:17:25.919
<v Speaker 1>around sixty five million dollars to develop that game, and

0:17:25.960 --> 0:17:29.600
<v Speaker 1>of course, businesses exist in order to create profits, so

0:17:29.960 --> 0:17:32.520
<v Speaker 1>business owners are always interested in finding new ways to

0:17:32.520 --> 0:17:35.919
<v Speaker 1>generate streams of revenue. When it's done well, then it

0:17:35.960 --> 0:17:40.480
<v Speaker 1>can enhance the experience of a game, and players typically

0:17:40.480 --> 0:17:42.720
<v Speaker 1>are are happy to get more of what they love.

0:17:43.400 --> 0:17:45.879
<v Speaker 1>When it's done poorly, it creates a sense that you

0:17:45.920 --> 0:17:49.479
<v Speaker 1>have to pay to win the game, and that players

0:17:49.520 --> 0:17:51.960
<v Speaker 1>who have more cash to burn end up with an

0:17:52.040 --> 0:17:55.760
<v Speaker 1>unfair advantage over everyone else who might really be into

0:17:55.800 --> 0:17:58.480
<v Speaker 1>the game, but they might not have the spare change

0:17:58.520 --> 0:18:01.520
<v Speaker 1>to buy all the do Dads and nick next. Interestingly,

0:18:02.119 --> 0:18:05.080
<v Speaker 1>this tied back to an idea that the original Diablo

0:18:05.160 --> 0:18:07.919
<v Speaker 1>team had if you remember from my previous episodes, and

0:18:08.000 --> 0:18:11.440
<v Speaker 1>that concept players would end up buying a physical CD

0:18:11.680 --> 0:18:14.440
<v Speaker 1>that would contain in game items that they could use

0:18:14.480 --> 0:18:17.719
<v Speaker 1>to enhance their characters, like weapons and armor and that

0:18:17.800 --> 0:18:22.119
<v Speaker 1>kind of stuff. This was early enough that delivering stuff

0:18:22.160 --> 0:18:26.320
<v Speaker 1>digitally online wasn't as popular as using physical media. People

0:18:26.520 --> 0:18:29.360
<v Speaker 1>still went out and bought CDs, and some people still do,

0:18:29.440 --> 0:18:34.840
<v Speaker 1>but it's increasingly rare and now it's almost all digital delivery. Well. Ultimately,

0:18:35.160 --> 0:18:38.280
<v Speaker 1>the Diablo team did not pursue that strategy, which was

0:18:38.320 --> 0:18:41.560
<v Speaker 1>probably for the best, since the rampant cheating in that

0:18:41.640 --> 0:18:45.960
<v Speaker 1>game would have made that additional material moot Anyway. Recently,

0:18:46.359 --> 0:18:51.000
<v Speaker 1>Blizzard Entertainment released World of Warcraft Classic, which updates many

0:18:51.040 --> 0:18:54.119
<v Speaker 1>things about the original game, but brings back the game

0:18:54.160 --> 0:18:57.119
<v Speaker 1>world and the quests the players could find if they

0:18:57.119 --> 0:18:59.560
<v Speaker 1>had logged in way back in two thousand four when

0:18:59.560 --> 0:19:03.439
<v Speaker 1>the game for launched. The version of World Warcraft UH

0:19:03.640 --> 0:19:07.560
<v Speaker 1>is now running parallel to, but but separate from, the

0:19:07.640 --> 0:19:11.440
<v Speaker 1>ongoing official World of Warcraft game that has evolved over

0:19:11.440 --> 0:19:13.880
<v Speaker 1>the course of all those expansion sets. So now you've

0:19:13.920 --> 0:19:16.600
<v Speaker 1>got two flavors of World of Warcraft. You've got the

0:19:16.600 --> 0:19:19.439
<v Speaker 1>one that has evolved over the time since two thousand

0:19:19.440 --> 0:19:21.800
<v Speaker 1>four with all those expansion packs, and you have World

0:19:21.840 --> 0:19:25.400
<v Speaker 1>of Warcraft Classic. That is the way the game came

0:19:25.440 --> 0:19:29.359
<v Speaker 1>out originally, with some enhancements thrown in, and it's a

0:19:29.400 --> 0:19:31.960
<v Speaker 1>nod to those loyal fans of the series who missed

0:19:32.000 --> 0:19:34.520
<v Speaker 1>the good old days of the original World of Warcraft.

0:19:35.000 --> 0:19:37.640
<v Speaker 1>The games subscription fees and the number of active players

0:19:37.680 --> 0:19:40.159
<v Speaker 1>means that a rough estimate of the revenue generated by

0:19:40.160 --> 0:19:43.960
<v Speaker 1>this game is at its peak around a billion dollars

0:19:43.960 --> 0:19:48.840
<v Speaker 1>per year, which is crazy. Uh. That number has fluctuated

0:19:48.880 --> 0:19:52.320
<v Speaker 1>over time. It peaked at twelve million, and it went

0:19:52.320 --> 0:19:56.720
<v Speaker 1>into decline afterward, but it's still an incredibly popular M

0:19:56.880 --> 0:20:01.440
<v Speaker 1>M O RPG and still a healthy moneymaker for Blizzard.

0:20:01.920 --> 0:20:04.360
<v Speaker 1>All right. So that's our basic rundown on World of Warcraft.

0:20:04.400 --> 0:20:07.040
<v Speaker 1>And of course we could spend a lot more time

0:20:07.119 --> 0:20:09.879
<v Speaker 1>going over all of the details, but instead I'm going

0:20:09.920 --> 0:20:12.280
<v Speaker 1>to take a quick break and then get back to

0:20:12.400 --> 0:20:15.119
<v Speaker 1>what was happening to the company in general over the

0:20:15.200 --> 0:20:19.480
<v Speaker 1>last decade or so. So let's take a quick break.

0:20:27.000 --> 0:20:30.760
<v Speaker 1>The enormous early success of World of Warcraft had a

0:20:31.000 --> 0:20:34.959
<v Speaker 1>downside because it meant that projects like StarCraft two and

0:20:35.119 --> 0:20:39.800
<v Speaker 1>Diablo three would actually receive less attention so that Blizzard

0:20:39.840 --> 0:20:45.160
<v Speaker 1>could cater to the Wow community World of Warcraft community. Then,

0:20:45.520 --> 0:20:48.280
<v Speaker 1>if you listen to my last episode, you know that

0:20:48.760 --> 0:20:53.120
<v Speaker 1>two major camps from Blizzard North that was the team

0:20:53.160 --> 0:20:57.800
<v Speaker 1>responsible for creating Diablo and Diablo two. Two camps had

0:20:57.880 --> 0:21:01.160
<v Speaker 1>split off from Blizzard North to form new video game

0:21:01.200 --> 0:21:05.240
<v Speaker 1>development studios, and that left the Blizzard North team severely

0:21:05.400 --> 0:21:09.600
<v Speaker 1>understaffed and without key leadership. Diablo three, as a result,

0:21:09.720 --> 0:21:13.879
<v Speaker 1>was floundering in development. The art design was stuck at

0:21:13.960 --> 0:21:17.240
<v Speaker 1>least a generation behind, the team was having trouble creating

0:21:17.280 --> 0:21:21.080
<v Speaker 1>a good game, and Blizzards new owner Vivendi was still

0:21:21.119 --> 0:21:24.600
<v Speaker 1>kind of a scary shadow over the whole company. So ultimately,

0:21:25.040 --> 0:21:28.840
<v Speaker 1>the leaders at Blizzards South decided that to make games

0:21:29.000 --> 0:21:32.439
<v Speaker 1>up to the standards of Blizzard, they needed to be

0:21:32.480 --> 0:21:35.320
<v Speaker 1>able to oversee the whole process that and they couldn't

0:21:35.320 --> 0:21:38.840
<v Speaker 1>really do that from southern California for a team that

0:21:39.000 --> 0:21:43.560
<v Speaker 1>was located in the Bay Area in northern California. This

0:21:43.640 --> 0:21:46.679
<v Speaker 1>is exactly the kind of thing that Blizzard North was

0:21:46.840 --> 0:21:50.600
<v Speaker 1>trying to protect itself from in its early days. And

0:21:50.680 --> 0:21:54.280
<v Speaker 1>so with all those considerations, Blizzard South decided to shut

0:21:54.480 --> 0:21:59.000
<v Speaker 1>down Blizzard North, and that was the branch that had

0:21:59.040 --> 0:22:02.800
<v Speaker 1>formerly been known as on Door. So Blizzard South offered

0:22:03.040 --> 0:22:06.000
<v Speaker 1>jobs to the team's up at Blizzard North. They said,

0:22:06.080 --> 0:22:08.679
<v Speaker 1>you can still work for Blizzard, but to do it,

0:22:08.720 --> 0:22:12.000
<v Speaker 1>you're gonna have to move down to southern California. So

0:22:12.080 --> 0:22:15.359
<v Speaker 1>some people, but not everybody, took them up on that offer.

0:22:16.080 --> 0:22:18.800
<v Speaker 1>So that meant that it would almost be an entirely

0:22:18.880 --> 0:22:22.640
<v Speaker 1>new team working on Diablo three, and as part of that,

0:22:23.160 --> 0:22:26.480
<v Speaker 1>they decided to start over from scratch, so that's set

0:22:26.520 --> 0:22:30.960
<v Speaker 1>that project back considerably. In October two thousand five, Blizzard

0:22:31.040 --> 0:22:34.879
<v Speaker 1>hosted the first blizz Con in Anaheim, California. This was

0:22:34.920 --> 0:22:38.520
<v Speaker 1>a convention for fans of the company's games, so attendees

0:22:38.600 --> 0:22:42.200
<v Speaker 1>got early looks at games and development, including StarCraft Ghost,

0:22:42.480 --> 0:22:45.560
<v Speaker 1>which would ultimately be canceled, so some people got a

0:22:45.640 --> 0:22:48.199
<v Speaker 1>chance to kind of get some hands on time with

0:22:48.280 --> 0:22:52.000
<v Speaker 1>early builds of games that just never came out. They

0:22:52.040 --> 0:22:56.240
<v Speaker 1>attended presentations that were given by Blizzard employees about the

0:22:56.280 --> 0:22:58.719
<v Speaker 1>games and the lore around the games, the art design,

0:22:58.800 --> 0:23:01.520
<v Speaker 1>all that kind of stuff, and the company would hold

0:23:01.560 --> 0:23:05.639
<v Speaker 1>another one in two thousand seven. So between two thousand

0:23:05.600 --> 0:23:07.400
<v Speaker 1>and five and two thousand seven was the year. Two

0:23:07.400 --> 0:23:09.600
<v Speaker 1>thousand and six. There was no blizz Con that year,

0:23:09.680 --> 0:23:12.280
<v Speaker 1>but from two thousand seven onward it would become an

0:23:12.320 --> 0:23:16.320
<v Speaker 1>annual event. It became so popular and so useful that

0:23:16.600 --> 0:23:20.240
<v Speaker 1>eventually Blizzard decided that in two thousand nine it wouldn't

0:23:20.280 --> 0:23:23.000
<v Speaker 1>go to E three anymore. It didn't need to because

0:23:23.119 --> 0:23:26.560
<v Speaker 1>it had its own promotional event with a very engaged

0:23:26.800 --> 0:23:30.719
<v Speaker 1>group of of users. The community of Blizzard was really

0:23:30.800 --> 0:23:34.240
<v Speaker 1>passionate about this, so why would they go to E

0:23:34.440 --> 0:23:37.840
<v Speaker 1>three where they would just be another company competing for

0:23:37.920 --> 0:23:42.160
<v Speaker 1>attention from press and retailers. And we've seen other companies

0:23:42.200 --> 0:23:45.720
<v Speaker 1>follow blizzards lead, and many of them now hold their

0:23:45.720 --> 0:23:49.240
<v Speaker 1>own events and either they also attend E three or

0:23:49.280 --> 0:23:52.240
<v Speaker 1>they skip E three entirely. Uh. Their events tend to

0:23:52.240 --> 0:23:55.480
<v Speaker 1>be a little less elaborate than blizz Con tends to be,

0:23:56.160 --> 0:23:59.119
<v Speaker 1>so they don't tend to be full on conferences the

0:23:59.119 --> 0:24:02.920
<v Speaker 1>way blizz Con is, but they are similar in effect,

0:24:02.960 --> 0:24:06.280
<v Speaker 1>and that it's a company holding its own event on

0:24:06.359 --> 0:24:09.320
<v Speaker 1>its own terms instead of sticking with the three. In

0:24:09.359 --> 0:24:13.480
<v Speaker 1>two thousand six, the year without a blizz Con, Blizzard

0:24:13.520 --> 0:24:16.520
<v Speaker 1>made another big announcement. The studio revealed that it had

0:24:16.760 --> 0:24:21.880
<v Speaker 1>entered into a project with the movie studio Legendary Pictures

0:24:21.920 --> 0:24:26.040
<v Speaker 1>for the purposes of developing a Warcraft motion picture. Now,

0:24:26.080 --> 0:24:29.280
<v Speaker 1>the original plan was to script and shoot a movie

0:24:29.359 --> 0:24:33.480
<v Speaker 1>in time for a two thousand nine release, and this

0:24:33.760 --> 0:24:37.080
<v Speaker 1>whole move to doing a film wasn't that surprising because

0:24:37.119 --> 0:24:40.040
<v Speaker 1>since two thousand Blizzard had been publishing novels that were

0:24:40.080 --> 0:24:43.760
<v Speaker 1>set in the Warcraft universe, and they were also exploring

0:24:44.040 --> 0:24:47.880
<v Speaker 1>opportunities and other media like comic books. So the original

0:24:47.920 --> 0:24:51.760
<v Speaker 1>plan was that Sam Ramy, who had just recently finished

0:24:51.760 --> 0:24:54.760
<v Speaker 1>directing Spider Man two, to come over and direct the

0:24:54.760 --> 0:24:59.560
<v Speaker 1>Warcraft movie. However, like some other Blizzard projects, this one

0:24:59.680 --> 0:25:02.680
<v Speaker 1>hit more than a few snags in development and would

0:25:02.680 --> 0:25:06.280
<v Speaker 1>not launch in two thousand nine. There were issues with

0:25:06.320 --> 0:25:08.680
<v Speaker 1>the script and there was a real struggle to turn

0:25:08.720 --> 0:25:12.920
<v Speaker 1>the film into something other than just another generic fantasy epic.

0:25:13.400 --> 0:25:15.399
<v Speaker 1>The Lord of the Rings films had set a pretty

0:25:15.480 --> 0:25:17.760
<v Speaker 1>high bar, and there was a real danger of being

0:25:17.840 --> 0:25:21.320
<v Speaker 1>viewed as sort of a copycat of that franchise. So

0:25:21.400 --> 0:25:24.520
<v Speaker 1>as time went on, Sam Raimi would leave the project

0:25:24.640 --> 0:25:28.280
<v Speaker 1>to pursue other opportunities, and Duncan Jones, the son of

0:25:28.359 --> 0:25:32.200
<v Speaker 1>David Bowie, signed on to direct the Warcraft movie. Jones

0:25:32.200 --> 0:25:35.399
<v Speaker 1>worked with Blizzard to create a new script, reportedly because

0:25:35.600 --> 0:25:39.320
<v Speaker 1>he felt that the initial draft fell into the cliche

0:25:39.600 --> 0:25:43.000
<v Speaker 1>of humans are the good guys Orcs are the bad guys,

0:25:43.160 --> 0:25:46.760
<v Speaker 1>and they fight. He wanted there to be more ambiguity

0:25:47.160 --> 0:25:50.960
<v Speaker 1>in the story and for both sides to have motivations

0:25:51.000 --> 0:25:54.320
<v Speaker 1>that the audience could get behind. Actually, ultimately some critics

0:25:54.320 --> 0:25:58.080
<v Speaker 1>would say that the Orcs got a much deeper presentation

0:25:58.119 --> 0:26:01.200
<v Speaker 1>than the humans did, and so almost aired on the

0:26:01.240 --> 0:26:05.080
<v Speaker 1>flip side of what Jones was concerned about. Now, all

0:26:05.119 --> 0:26:08.959
<v Speaker 1>of this meant that the movies released was delayed multiple times.

0:26:09.080 --> 0:26:11.639
<v Speaker 1>It missed the initial plan to premiere in two thousand nine,

0:26:11.920 --> 0:26:14.520
<v Speaker 1>it missed another date in two thousand and eleven, and

0:26:14.680 --> 0:26:17.639
<v Speaker 1>Blizzard remained tight lipped about the film for a good

0:26:17.720 --> 0:26:20.240
<v Speaker 1>long while. Like after they announced it, they didn't really

0:26:20.280 --> 0:26:23.600
<v Speaker 1>talk about it so much. But while progress was slow

0:26:23.960 --> 0:26:27.920
<v Speaker 1>and intermittent, it was at least happening, and in two

0:26:27.920 --> 0:26:32.320
<v Speaker 1>thousand sixteen, the movie was finally ready for audiences, a

0:26:32.480 --> 0:26:36.439
<v Speaker 1>decade after it's been announced, and a hundred sixty million

0:26:36.480 --> 0:26:42.040
<v Speaker 1>dollars reportedly for the budget. It's global box office got

0:26:42.720 --> 0:26:45.760
<v Speaker 1>a little close to half a billion dollars, but it

0:26:45.840 --> 0:26:49.200
<v Speaker 1>was still largely viewed as a commercial failure. It actually

0:26:49.200 --> 0:26:52.800
<v Speaker 1>made less than fifty million dollars in the United States. Now,

0:26:52.840 --> 0:26:55.919
<v Speaker 1>I cannot comment on the quality of the movie because

0:26:56.640 --> 0:26:59.479
<v Speaker 1>I never saw it, But on rotten Tomatoes it has

0:26:59.520 --> 0:27:04.440
<v Speaker 1>a twenty eight percent approval rating, meaning it's a rotten film.

0:27:04.480 --> 0:27:08.000
<v Speaker 1>But just a quick reminder for you guys, on rotten

0:27:08.000 --> 0:27:11.040
<v Speaker 1>Tomatoes does not mean that the movie is way worse

0:27:11.040 --> 0:27:14.240
<v Speaker 1>than say, a different movie that got a forty percent rating,

0:27:14.400 --> 0:27:17.760
<v Speaker 1>because the percentage doesn't actually tell you how good or

0:27:17.880 --> 0:27:21.440
<v Speaker 1>bad a film is. Rather, it tells you the percentage

0:27:21.480 --> 0:27:26.119
<v Speaker 1>of critics who gave the film either a positive or

0:27:26.119 --> 0:27:29.639
<v Speaker 1>a negative review. And these are critics that Rotten Tomatoes

0:27:29.680 --> 0:27:33.400
<v Speaker 1>recognizes as legitimate critics, So it's not all critics, it's

0:27:33.400 --> 0:27:36.480
<v Speaker 1>a selection of them, And it's really more like saying

0:27:36.720 --> 0:27:40.120
<v Speaker 1>around thirty of the critics who reviewed the film gave

0:27:40.160 --> 0:27:44.879
<v Speaker 1>it a mediocre to positive response, but it doesn't necessarily

0:27:44.920 --> 0:27:48.160
<v Speaker 1>mean that the movie is objectively better or worse than

0:27:48.200 --> 0:27:51.359
<v Speaker 1>other movies that have similar scores, or even scores that

0:27:51.400 --> 0:27:54.199
<v Speaker 1>are slightly higher slightly lower. Also, I should add that

0:27:54.600 --> 0:27:57.800
<v Speaker 1>the audience score for the film is much higher at

0:27:57.840 --> 0:28:02.080
<v Speaker 1>seventy six percent. So the critics weren't thrilled with it,

0:28:02.320 --> 0:28:05.920
<v Speaker 1>but you know, audiences seemed to be more positive about

0:28:05.960 --> 0:28:10.359
<v Speaker 1>the whole thing. Now, considering Blizzard Entertainment's reputation for highly

0:28:10.440 --> 0:28:14.040
<v Speaker 1>produced cut scenes and video games, some of which featured

0:28:14.040 --> 0:28:17.200
<v Speaker 1>animation that could easily rival that of the c g

0:28:17.359 --> 0:28:20.200
<v Speaker 1>I you found in feature films, I'm sure this came

0:28:20.240 --> 0:28:23.560
<v Speaker 1>as a major disappointment to the company. It's still exceeded

0:28:23.680 --> 0:28:28.800
<v Speaker 1>the performance of most other video game film adaptations, but

0:28:28.920 --> 0:28:32.520
<v Speaker 1>that bar wasn't set terribly high to begin with. I mean,

0:28:33.240 --> 0:28:36.000
<v Speaker 1>just watch the Super Mario Brothers movie, so maybe that

0:28:36.080 --> 0:28:40.240
<v Speaker 1>wasn't such a stretch goal. The critical consensus was that

0:28:40.320 --> 0:28:43.160
<v Speaker 1>the movie was just too deeply mired in mythology that

0:28:43.240 --> 0:28:47.040
<v Speaker 1>might be familiar to hardcore warcraft players but not to

0:28:47.080 --> 0:28:49.880
<v Speaker 1>anyone else, and so there are entire sequences that were

0:28:49.920 --> 0:28:53.400
<v Speaker 1>inscrutable and absurd to someone just viewing the material. For

0:28:53.400 --> 0:28:56.720
<v Speaker 1>the first time. While Duncan Jones expressed a desire to

0:28:56.760 --> 0:29:00.280
<v Speaker 1>continue the storyline in two thousand eighteen, he we did

0:29:00.280 --> 0:29:04.800
<v Speaker 1>that such a possibility was at best unlikely. Okay, so

0:29:04.880 --> 0:29:07.600
<v Speaker 1>let's rewind again to two thousand seven, and you may

0:29:07.640 --> 0:29:11.560
<v Speaker 1>wonder why I'm not talking about other games that Blizzard

0:29:11.600 --> 0:29:15.080
<v Speaker 1>was making right now. That's because Blizzard was really dedicating

0:29:15.280 --> 0:29:18.440
<v Speaker 1>the vast majority of its focus on World of Warcraft,

0:29:18.680 --> 0:29:21.320
<v Speaker 1>which again makes sense when you realize how that game

0:29:21.320 --> 0:29:24.400
<v Speaker 1>was responsible for the financial performance of the company overall.

0:29:25.160 --> 0:29:27.840
<v Speaker 1>So two thousand seven would be a really big year

0:29:27.880 --> 0:29:30.800
<v Speaker 1>for Blizzard. Part of that was because they launched the

0:29:30.800 --> 0:29:35.040
<v Speaker 1>Burning Crusade, which was the World of Warcraft first expansion

0:29:35.040 --> 0:29:38.440
<v Speaker 1>pack that year. Another reason was that the World of

0:29:38.480 --> 0:29:43.960
<v Speaker 1>Warcraft game would hit eight point five million subscribers, big milestone.

0:29:44.240 --> 0:29:48.080
<v Speaker 1>Blizzard also announced that StarCraft two would officially become a

0:29:48.200 --> 0:29:51.000
<v Speaker 1>thing in two thousand seven, and they did that during

0:29:51.080 --> 0:29:55.520
<v Speaker 1>their third Worldwide Invitational event, as an event that takes

0:29:55.520 --> 0:30:00.160
<v Speaker 1>place in South Korea, where StarCraft competition is huge. But

0:30:00.200 --> 0:30:04.280
<v Speaker 1>above all of that was another big corporate move outside

0:30:04.280 --> 0:30:08.840
<v Speaker 1>of Blizzards direct control. So Vivendi, the parent company, announced

0:30:08.880 --> 0:30:11.360
<v Speaker 1>that it was going into a merger deal with the

0:30:11.440 --> 0:30:15.000
<v Speaker 1>video game company Activision, and that would happen towards the

0:30:15.160 --> 0:30:17.680
<v Speaker 1>end of two thousand seven when they announced this. The

0:30:17.720 --> 0:30:21.240
<v Speaker 1>actual acquisition happened into two thousand eight. So Activision and

0:30:21.360 --> 0:30:25.880
<v Speaker 1>Vivindi Games, the division of Vindy that was all about games. Obviously,

0:30:26.360 --> 0:30:28.440
<v Speaker 1>they would come together and they would form a new

0:30:28.720 --> 0:30:32.880
<v Speaker 1>kind of parent company, publishing company really, and it was

0:30:32.920 --> 0:30:37.880
<v Speaker 1>going to be called Activision Blizzard, non Activision Vivendi Activision Blizzard.

0:30:37.920 --> 0:30:41.920
<v Speaker 1>That's how much clout Blizzard had. They could demand that

0:30:42.000 --> 0:30:45.520
<v Speaker 1>their name would get equal billing with Activision. So this

0:30:45.560 --> 0:30:48.680
<v Speaker 1>new company would still trade on the Nasdaq Stock Exchange

0:30:48.760 --> 0:30:52.640
<v Speaker 1>under the Activision ticker of a t v I, and

0:30:52.680 --> 0:30:56.160
<v Speaker 1>the merger would make Activision Blizzard the world's largest video

0:30:56.240 --> 0:31:00.560
<v Speaker 1>game publisher. Activision was writing high at that time from

0:31:00.600 --> 0:31:04.320
<v Speaker 1>the release of Call of Duty for Modern Warfare. Vivendi

0:31:04.400 --> 0:31:07.960
<v Speaker 1>Games was enjoying the tremendous financial success of World of Warcraft,

0:31:08.480 --> 0:31:11.560
<v Speaker 1>and the company, Vivendi Games had a value of eight

0:31:11.560 --> 0:31:15.720
<v Speaker 1>point one billion dollars at that time, and according to

0:31:16.360 --> 0:31:19.040
<v Speaker 1>UH a lot of sources, they would contribute about one

0:31:19.080 --> 0:31:22.840
<v Speaker 1>point seven billion dollars towards this acquisition deal. So when

0:31:22.880 --> 0:31:27.080
<v Speaker 1>you lump that cash offering along with the value of

0:31:27.080 --> 0:31:30.840
<v Speaker 1>the company, that comes up to nine point eight billion dollars.

0:31:30.840 --> 0:31:33.280
<v Speaker 1>That's a lot of cheddar right there, A princely some

0:31:33.520 --> 0:31:38.120
<v Speaker 1>if ever there was one. In return, Vivendi would get

0:31:38.160 --> 0:31:43.320
<v Speaker 1>a fifty two steak in Activision Blizzard. Activisions CEO, a

0:31:43.320 --> 0:31:47.240
<v Speaker 1>guy named Bobby Kodik would head up the new company,

0:31:47.280 --> 0:31:49.840
<v Speaker 1>and the two companies completed the acquisition. As I said

0:31:49.880 --> 0:31:52.320
<v Speaker 1>in two thousand eight, now skipping ahead a bit just

0:31:52.360 --> 0:31:55.160
<v Speaker 1>to stick with this particular part of the story. About

0:31:55.240 --> 0:31:58.640
<v Speaker 1>six years later, Codek would lead an investment group to

0:31:58.680 --> 0:32:02.840
<v Speaker 1>purchase most of the fifty of the ownership from the Vindy,

0:32:03.480 --> 0:32:06.080
<v Speaker 1>and they did it with an offer of eight point

0:32:06.160 --> 0:32:10.680
<v Speaker 1>two billion dollars. Now, remember Vivendi Games when it went

0:32:10.760 --> 0:32:14.520
<v Speaker 1>into this acquisition was worth eight point one So they

0:32:14.560 --> 0:32:16.960
<v Speaker 1>offer eight point two billion dollars and buy back most

0:32:17.160 --> 0:32:20.320
<v Speaker 1>of that steak. The Vendi would still hold on to

0:32:20.400 --> 0:32:23.840
<v Speaker 1>a little bit more of its ownership of Activision Blizzard,

0:32:24.160 --> 0:32:27.959
<v Speaker 1>but it did divest itself of those shares in two

0:32:28.400 --> 0:32:31.840
<v Speaker 1>future transactions. One happened in two thousand fourteen and one

0:32:31.880 --> 0:32:35.800
<v Speaker 1>for two thousand sixteen, and together they accounted for about

0:32:35.840 --> 0:32:40.200
<v Speaker 1>two billion dollars combined um, which I realized I just

0:32:40.280 --> 0:32:43.360
<v Speaker 1>said in a redundant and repetitive way. I just want

0:32:43.360 --> 0:32:47.960
<v Speaker 1>to reiterate that, as Brendan Sinclair of Games Industry dot

0:32:48.000 --> 0:32:50.960
<v Speaker 1>Biz would observe, that would mean that the Vendi itself

0:32:50.960 --> 0:32:55.040
<v Speaker 1>would effectively hand over nine point eight billion dollars that

0:32:55.080 --> 0:32:57.200
<v Speaker 1>would be the value of the company and the cash

0:32:57.280 --> 0:33:00.600
<v Speaker 1>they paid during the acquisition, and in return ten years

0:33:00.680 --> 0:33:04.920
<v Speaker 1>later it would net ten point one five billion dollars.

0:33:04.960 --> 0:33:08.200
<v Speaker 1>That's a net gain of around three hundred fifty million bucks,

0:33:08.440 --> 0:33:10.960
<v Speaker 1>which is a princely sum, but it represents just a

0:33:11.040 --> 0:33:14.360
<v Speaker 1>three point five percent gain in value over a decade,

0:33:14.640 --> 0:33:18.400
<v Speaker 1>Whereas if you had just purchased shares in the company

0:33:18.520 --> 0:33:21.400
<v Speaker 1>back when the acquisition happened and sat on them and

0:33:21.440 --> 0:33:24.520
<v Speaker 1>then sold them when Vivendi sold off the final shares,

0:33:24.960 --> 0:33:27.320
<v Speaker 1>you would have seen a return of three hundred sixties

0:33:27.360 --> 0:33:30.440
<v Speaker 1>seven percent. So not a great move on Vivindy's part.

0:33:31.120 --> 0:33:34.160
<v Speaker 1>They made this decision, by the way, because the company, Vivendi,

0:33:34.840 --> 0:33:38.320
<v Speaker 1>was in thirteen billion dollars of debt around that time,

0:33:38.400 --> 0:33:42.480
<v Speaker 1>so they needed to be able to sell off assets

0:33:42.520 --> 0:33:45.720
<v Speaker 1>in order to settle some of that debt. Now, granted,

0:33:46.320 --> 0:33:50.120
<v Speaker 1>none of that is really a concern for Blizzard the

0:33:50.200 --> 0:33:55.000
<v Speaker 1>video game development company. It was more of a questionable

0:33:55.120 --> 0:33:58.920
<v Speaker 1>mark on Blizzards parent company and the decisions of its

0:33:59.120 --> 0:34:03.080
<v Speaker 1>executive team, up being Vindi Games. As for Blizzard, the

0:34:03.160 --> 0:34:05.440
<v Speaker 1>company was able to operate almost as if it were

0:34:05.720 --> 0:34:10.320
<v Speaker 1>an independent studio even under this merger because the revenue

0:34:10.440 --> 0:34:17.319
<v Speaker 1>was bringing in made it an incredibly valuable asset, so

0:34:17.520 --> 0:34:19.759
<v Speaker 1>it just made sense not to mess with it too much.

0:34:20.040 --> 0:34:23.840
<v Speaker 1>So while Activision Blizzard would publish the games, Blizzard the

0:34:23.880 --> 0:34:28.600
<v Speaker 1>development company, because it's a different thing, would otherwise operate

0:34:28.719 --> 0:34:31.239
<v Speaker 1>without too much interference from anyone higher up on the chain,

0:34:31.320 --> 0:34:33.600
<v Speaker 1>at least for the time being, because Blizzard had that

0:34:33.719 --> 0:34:37.759
<v Speaker 1>much clout. In two thousand and eight, it was more Warcraft,

0:34:38.120 --> 0:34:41.160
<v Speaker 1>with music from the game's becoming tracks on iTunes and

0:34:41.200 --> 0:34:44.880
<v Speaker 1>the second expansion for Wow, that being Wrath of the

0:34:44.960 --> 0:34:47.719
<v Speaker 1>lich King that launched at the end of two thousand eight,

0:34:47.960 --> 0:34:51.680
<v Speaker 1>and like its predecessor, the expansion pack broke PC sales

0:34:51.719 --> 0:34:54.960
<v Speaker 1>records for most copies sold within twenty four hours, and

0:34:55.000 --> 0:34:58.600
<v Speaker 1>around that time, while hit a subscription base of eleven

0:34:58.760 --> 0:35:03.480
<v Speaker 1>million players almost at its peak. Blizzard would not release

0:35:03.560 --> 0:35:08.319
<v Speaker 1>another title until and that's when StarCraft two Wings of

0:35:08.360 --> 0:35:13.040
<v Speaker 1>Liberty finally came out, twelve years after the original title

0:35:13.040 --> 0:35:16.919
<v Speaker 1>had published way back in now. Along with the game,

0:35:17.280 --> 0:35:22.480
<v Speaker 1>Blizzard released an updated version of its battle Net service. Eventually,

0:35:23.160 --> 0:35:25.799
<v Speaker 1>Blizzard would update battle nets so that it was sort

0:35:25.840 --> 0:35:29.120
<v Speaker 1>of a universal log in for all Blizzard games, including

0:35:29.200 --> 0:35:33.640
<v Speaker 1>World of Warcraft. Eager gamers Zurg rushed the stores to

0:35:33.680 --> 0:35:36.640
<v Speaker 1>get their copies of StarCraft two. Oh and you know what,

0:35:36.760 --> 0:35:39.400
<v Speaker 1>I never even talked about the Zurg rush and the

0:35:39.400 --> 0:35:42.200
<v Speaker 1>previous episode, but I guess I should because it's a

0:35:42.280 --> 0:35:45.480
<v Speaker 1>meme that goes beyond the games itself. So here we go.

0:35:45.840 --> 0:35:49.240
<v Speaker 1>So in the StarCraft games, one of the three faction

0:35:49.600 --> 0:35:52.680
<v Speaker 1>or races that you can control as a player are

0:35:52.800 --> 0:35:56.600
<v Speaker 1>an insectoid race called the Zerg z e r G.

0:35:57.400 --> 0:35:59.760
<v Speaker 1>An early unit that you can produce with the Zurg

0:36:00.000 --> 0:36:03.799
<v Speaker 1>are these zurg Lings, which are not terribly powerful, but

0:36:03.920 --> 0:36:06.840
<v Speaker 1>if you're fast, if you're really a fast player, you

0:36:06.880 --> 0:36:09.160
<v Speaker 1>can produce a whole bunch of them early on in

0:36:09.200 --> 0:36:12.600
<v Speaker 1>the game. So there's a tactic that was really developed

0:36:12.600 --> 0:36:16.440
<v Speaker 1>in South Korea where StarCraft is a popular sport, and

0:36:16.640 --> 0:36:19.200
<v Speaker 1>that tactic is to produce as many Zurglings as you

0:36:19.239 --> 0:36:22.280
<v Speaker 1>possibly can early in the game, and then you send

0:36:22.320 --> 0:36:25.920
<v Speaker 1>them to overwhelm and wipe out an opponent while your

0:36:25.960 --> 0:36:28.920
<v Speaker 1>opponent is still just getting set up. It's called a

0:36:29.040 --> 0:36:33.080
<v Speaker 1>zerg rush. Also in the lore is that Korean players

0:36:33.120 --> 0:36:36.600
<v Speaker 1>who use this tactic would end up responding to opponents.

0:36:36.640 --> 0:36:38.960
<v Speaker 1>Their opponents would cry out an alarm, they say, oh

0:36:38.960 --> 0:36:42.360
<v Speaker 1>my god, zurg rush, and the South Koreans would respond

0:36:42.360 --> 0:36:45.400
<v Speaker 1>with key ki ki k e k e k e.

0:36:45.719 --> 0:36:49.320
<v Speaker 1>That's similar to how you would write l O l

0:36:49.360 --> 0:36:51.319
<v Speaker 1>O l L, you know, laugh out loud, over and

0:36:51.320 --> 0:36:54.640
<v Speaker 1>over lola la la uh. And it was meant to

0:36:54.680 --> 0:36:58.360
<v Speaker 1>convey a kind of mischievous chuckle. The meme got popular

0:36:58.480 --> 0:37:00.759
<v Speaker 1>enough for Google to use it in an Easter egg

0:37:00.760 --> 0:37:03.160
<v Speaker 1>in two thousand twelve. And if you search the term

0:37:03.400 --> 0:37:06.680
<v Speaker 1>zerg rush and Google to get a little playable game

0:37:06.680 --> 0:37:09.680
<v Speaker 1>in which lower case oh letters start to come out

0:37:09.719 --> 0:37:13.920
<v Speaker 1>and destroy all your search results. It's adorable anyway. The

0:37:14.000 --> 0:37:17.680
<v Speaker 1>general reception was that StarCraft two was more than worth

0:37:17.719 --> 0:37:22.279
<v Speaker 1>the weight it delivered upon its promise. The game was

0:37:22.320 --> 0:37:24.880
<v Speaker 1>set just a few years after the events of the

0:37:25.000 --> 0:37:29.040
<v Speaker 1>StarCraft brood War expansion packs, So even though the actual

0:37:29.080 --> 0:37:32.839
<v Speaker 1>game came out twelve years later, it was set four

0:37:32.920 --> 0:37:36.000
<v Speaker 1>years later. It would be followed by three expansion packs

0:37:36.040 --> 0:37:38.239
<v Speaker 1>of its own, the first two of which gave more

0:37:38.280 --> 0:37:41.000
<v Speaker 1>in depth treatment to one of the three factions in

0:37:41.000 --> 0:37:43.319
<v Speaker 1>the game. The Human faction was actually taken care of

0:37:43.360 --> 0:37:46.239
<v Speaker 1>in the initial release of the base game, which, you know.

0:37:47.160 --> 0:37:50.000
<v Speaker 1>Typical critics loved the game. They said it was one

0:37:50.000 --> 0:37:53.719
<v Speaker 1>of the best RTS titles for the PC. Ever. Now,

0:37:53.719 --> 0:37:55.680
<v Speaker 1>when we come back, I'm going to catch you up

0:37:55.719 --> 0:37:59.560
<v Speaker 1>on what's been going on since StarCraft two with Blizzard Entertainment.

0:37:59.600 --> 0:38:10.239
<v Speaker 1>But first let's take another quick break. StarCraft two debuted

0:38:10.239 --> 0:38:14.760
<v Speaker 1>in mid Blizzard Entertainment put out another expansion for World

0:38:14.800 --> 0:38:18.520
<v Speaker 1>of Warcraft in eleven, but otherwise no new titles in

0:38:19.400 --> 0:38:23.600
<v Speaker 1>Blizzard published Diablo three to great anticipation, and once again

0:38:23.640 --> 0:38:25.920
<v Speaker 1>the company saw one of its titles break records for

0:38:25.960 --> 0:38:29.239
<v Speaker 1>the most copies sold within twenty four hours. Now, as

0:38:29.280 --> 0:38:33.320
<v Speaker 1>I mentioned earlier, this version of Diablo three was different

0:38:33.400 --> 0:38:37.200
<v Speaker 1>from what the creators of Diablo had originally intended. The

0:38:37.280 --> 0:38:40.840
<v Speaker 1>leaders behind the Diablo franchise had not been part of

0:38:40.880 --> 0:38:44.480
<v Speaker 1>Blizzard since two thousand three, when they all left in

0:38:44.680 --> 0:38:48.680
<v Speaker 1>mass and UH and Blizzard North, the studio that had

0:38:48.719 --> 0:38:52.759
<v Speaker 1>actually developed Diablo and Diablo two ceased to exist in

0:38:52.800 --> 0:38:55.680
<v Speaker 1>two thousand five. So the team that built Diablo three

0:38:55.719 --> 0:38:58.399
<v Speaker 1>included some folks who were famous for working on other

0:38:58.560 --> 0:39:02.439
<v Speaker 1>big games for different companies. For example, Leonard Boyarski, who

0:39:02.440 --> 0:39:05.440
<v Speaker 1>worked as a head designer on the game, had been

0:39:05.440 --> 0:39:08.320
<v Speaker 1>one of the original creators for the game series Fallout.

0:39:08.680 --> 0:39:11.240
<v Speaker 1>And there was also j Wilson, who worked on titles

0:39:11.280 --> 0:39:14.279
<v Speaker 1>like Company of Heroes and Warhammer for d K, and

0:39:14.440 --> 0:39:18.120
<v Speaker 1>he served as the lead designer for Diablo three. In

0:39:18.120 --> 0:39:20.640
<v Speaker 1>some ways, the game was very similar to previous versions

0:39:20.640 --> 0:39:24.600
<v Speaker 1>of Diablo. It had an emphasis on loot to boost

0:39:24.640 --> 0:39:28.359
<v Speaker 1>a player's abilities and stats. It used an overhead view

0:39:28.400 --> 0:39:30.880
<v Speaker 1>that was similar to the isometric view that Diablo and

0:39:30.960 --> 0:39:34.920
<v Speaker 1>Diablo two used. It also had some new things like

0:39:34.960 --> 0:39:39.280
<v Speaker 1>destructible environments where you could have certain effects that actually

0:39:39.280 --> 0:39:41.799
<v Speaker 1>would affect the environment you were in. That was new.

0:39:42.080 --> 0:39:45.160
<v Speaker 1>All the other environments and Diablo and Diablo two, although

0:39:45.160 --> 0:39:48.440
<v Speaker 1>they were randomly generated, were largely static, so that was

0:39:48.520 --> 0:39:51.520
<v Speaker 1>kind of cool. Um this was done. It was made

0:39:51.520 --> 0:39:53.600
<v Speaker 1>possible by the fact that Blizzard was using its own

0:39:53.600 --> 0:39:56.440
<v Speaker 1>proprietary engine that had been built out of a previously

0:39:56.600 --> 0:39:59.840
<v Speaker 1>established game engine. One thing that Diablo three had that

0:40:00.080 --> 0:40:04.080
<v Speaker 1>did not excite people too much was a requirement for

0:40:04.120 --> 0:40:06.560
<v Speaker 1>all gamers, which was, if you want to play the game,

0:40:06.920 --> 0:40:11.200
<v Speaker 1>you had to have a persistent online connection. Even if

0:40:11.200 --> 0:40:15.000
<v Speaker 1>you were only playing as a single player. So you're

0:40:15.000 --> 0:40:18.480
<v Speaker 1>playing a single player game, the game exists on your computer,

0:40:18.880 --> 0:40:22.799
<v Speaker 1>you still had to have a persistent Internet connection to

0:40:23.120 --> 0:40:28.280
<v Speaker 1>Blizzards servers. UH. This was a DRM feature. DRM stands

0:40:28.320 --> 0:40:31.239
<v Speaker 1>for Digital Rights Management. It was meant to ensure that

0:40:31.280 --> 0:40:34.000
<v Speaker 1>the people who were playing the game, we're using authorized

0:40:34.040 --> 0:40:36.239
<v Speaker 1>copies of the game, because Blizzard had seen many of

0:40:36.239 --> 0:40:40.520
<v Speaker 1>its titles pirated. StarCraft two in particular, had a huge

0:40:40.560 --> 0:40:44.160
<v Speaker 1>problem with people pirating the game. So this was a

0:40:44.160 --> 0:40:46.800
<v Speaker 1>way to make sure that the people who were playing

0:40:46.800 --> 0:40:50.120
<v Speaker 1>the game were doing so on authorized copies and they

0:40:50.160 --> 0:40:54.320
<v Speaker 1>had purchased the game. The online requirement left some critics

0:40:54.360 --> 0:40:58.560
<v Speaker 1>and some players unhappy. UH. Server issues during high demand

0:40:58.840 --> 0:41:00.960
<v Speaker 1>made this worse. I mean, if a server goes down,

0:41:01.400 --> 0:41:04.640
<v Speaker 1>you cannot verify that your copy is legitimate. You could

0:41:04.640 --> 0:41:07.960
<v Speaker 1>have gone out and bought a game, spent money supporting

0:41:08.280 --> 0:41:11.359
<v Speaker 1>the video game company, brought it home and found out

0:41:11.400 --> 0:41:15.200
<v Speaker 1>you can't play it because their authentication server is down.

0:41:16.040 --> 0:41:19.400
<v Speaker 1>That's not great. That is an example of how legitimate

0:41:19.440 --> 0:41:22.520
<v Speaker 1>players can feel like they're being punished for playing by

0:41:22.520 --> 0:41:25.240
<v Speaker 1>the rules when they say, Hey, if I had broken

0:41:25.280 --> 0:41:27.160
<v Speaker 1>the rules and I had found a way to get

0:41:27.200 --> 0:41:29.680
<v Speaker 1>around this, I could actually play the game I I

0:41:29.840 --> 0:41:33.319
<v Speaker 1>paid for, So why are you punishing me? Which is

0:41:33.320 --> 0:41:36.600
<v Speaker 1>a pretty legit argument if you ask me. Um, It's

0:41:36.640 --> 0:41:38.719
<v Speaker 1>it's not easy to explain to a player why they

0:41:38.760 --> 0:41:41.320
<v Speaker 1>can't enjoy a single player experience on a game they've

0:41:41.320 --> 0:41:44.160
<v Speaker 1>purchased and installed on their computer just because their internet

0:41:44.160 --> 0:41:48.120
<v Speaker 1>connection goes down or a server goes offline. So that

0:41:48.239 --> 0:41:51.120
<v Speaker 1>was a kind of black mark against Diablo three. Now,

0:41:51.160 --> 0:41:53.799
<v Speaker 1>since Diablo three, we've seen lots of other games used

0:41:53.840 --> 0:41:57.920
<v Speaker 1>this same method of DRN and I don't think gamers

0:41:58.000 --> 0:42:00.680
<v Speaker 1>are any happier about this. A lot of them have

0:42:00.920 --> 0:42:03.360
<v Speaker 1>sort of become used to it, just because it's become

0:42:03.600 --> 0:42:07.120
<v Speaker 1>kind of a common uh strategy among a lot of

0:42:07.160 --> 0:42:10.880
<v Speaker 1>different game developers. Now between two thousand and twelve and

0:42:10.920 --> 0:42:15.000
<v Speaker 1>two thousand fourteen, Blizzard released expansion packs for StarCraft two

0:42:15.040 --> 0:42:17.439
<v Speaker 1>and World of Warcraft, as well as a console version

0:42:17.440 --> 0:42:20.359
<v Speaker 1>of Diabo three, but that was it. There were no

0:42:21.160 --> 0:42:24.080
<v Speaker 1>other new games coming out in two thousand twelve to

0:42:24.120 --> 0:42:27.719
<v Speaker 1>two thousand fourteen, But in two thousand fourteen, Blizzard would

0:42:27.760 --> 0:42:30.239
<v Speaker 1>actually release a brand new game. Now, granted, it was

0:42:30.280 --> 0:42:31.920
<v Speaker 1>a brand new game that was still tied to the

0:42:31.920 --> 0:42:35.560
<v Speaker 1>Warcraft universe, so it wasn't totally original i p. But

0:42:35.719 --> 0:42:39.680
<v Speaker 1>the game was called Hearthstone, still an incredibly popular game.

0:42:40.200 --> 0:42:43.120
<v Speaker 1>This is a digital card games similar to physical trading

0:42:43.160 --> 0:42:46.440
<v Speaker 1>card games like Magic the Gathering. So in Hearthstone, you

0:42:46.480 --> 0:42:48.640
<v Speaker 1>are a player who's building a deck of cards. It

0:42:48.680 --> 0:42:52.279
<v Speaker 1>contains various units and abilities, and you're using it in

0:42:52.320 --> 0:42:54.799
<v Speaker 1>an effort to take down opponents who have their own

0:42:54.840 --> 0:42:57.680
<v Speaker 1>deck of cards, and your opponents might be computer controlled

0:42:58.000 --> 0:43:01.399
<v Speaker 1>or there might be other human players. More importantly, it's

0:43:01.400 --> 0:43:04.960
<v Speaker 1>a game that's absolutely married to the concept of micro transactions.

0:43:05.400 --> 0:43:08.880
<v Speaker 1>Now you can play the game without making in game purchases,

0:43:09.520 --> 0:43:12.520
<v Speaker 1>but the fastest way to augment a deck is to

0:43:12.680 --> 0:43:16.040
<v Speaker 1>buy packs of virtual cards, so it's like buying a

0:43:16.280 --> 0:43:18.960
<v Speaker 1>booster pack, and then you can construct a deck of

0:43:19.040 --> 0:43:22.680
<v Speaker 1>thirty cards that best matches your playing style. You can't

0:43:22.719 --> 0:43:25.440
<v Speaker 1>guarantee that you're going to have any particular card in

0:43:25.560 --> 0:43:28.439
<v Speaker 1>your hand when you start off, but you can create

0:43:28.440 --> 0:43:31.160
<v Speaker 1>a deck that's more likely to be useful at various

0:43:31.200 --> 0:43:33.920
<v Speaker 1>stages of a match. The game is free to play,

0:43:34.120 --> 0:43:36.600
<v Speaker 1>so you can play Hearthstone without ever spending a dime

0:43:36.640 --> 0:43:38.560
<v Speaker 1>on it if you want to. But if you're going

0:43:38.600 --> 0:43:42.600
<v Speaker 1>up against other players who are purchasing booster packs, that

0:43:42.680 --> 0:43:44.680
<v Speaker 1>might prove to be a challenge because your odds of

0:43:45.239 --> 0:43:48.399
<v Speaker 1>getting a card you might really need uh in order

0:43:48.440 --> 0:43:51.319
<v Speaker 1>to build a good deck are low, and it takes

0:43:51.360 --> 0:43:54.600
<v Speaker 1>a lot more time to earn booster packs than it

0:43:54.640 --> 0:43:57.920
<v Speaker 1>does to just buy them out right. Blizzards released a

0:43:57.920 --> 0:44:00.399
<v Speaker 1>lot of new cards for the games several times since

0:44:00.440 --> 0:44:04.240
<v Speaker 1>it has introduced Hearthstone, and in November two thousand nineteen,

0:44:04.600 --> 0:44:08.320
<v Speaker 1>the company announced not only an expansion for the game,

0:44:08.600 --> 0:44:12.920
<v Speaker 1>but also a new game mode within Hearthstone called Battlegrounds,

0:44:13.239 --> 0:44:16.120
<v Speaker 1>which is what is called an auto battler. And I

0:44:16.160 --> 0:44:18.920
<v Speaker 1>had to actually look this up because I had no

0:44:18.960 --> 0:44:22.320
<v Speaker 1>idea what an auto battler was. I play video games,

0:44:22.360 --> 0:44:25.239
<v Speaker 1>but I had not come across this term. So in

0:44:25.280 --> 0:44:28.720
<v Speaker 1>an Auto Battler. There is a board upon which players

0:44:28.760 --> 0:44:32.080
<v Speaker 1>can place pieces, and it's kind of like a chess

0:44:32.120 --> 0:44:34.319
<v Speaker 1>game you but you can actually figure out where you're

0:44:34.320 --> 0:44:37.520
<v Speaker 1>going to put each piece, and the pieces they select

0:44:37.800 --> 0:44:42.160
<v Speaker 1>and the positions that they take determine their side's strengths

0:44:42.160 --> 0:44:45.799
<v Speaker 1>and weaknesses, and their opponent does the same thing on

0:44:45.880 --> 0:44:50.840
<v Speaker 1>their side. Then they get matched up together and the

0:44:50.920 --> 0:44:55.319
<v Speaker 1>conflict automatically resolves, So players are not directing anything at

0:44:55.360 --> 0:44:57.919
<v Speaker 1>that point. They've already made all their choices based upon

0:44:58.000 --> 0:45:00.760
<v Speaker 1>the pieces they've picked and the position as they've chosen,

0:45:01.160 --> 0:45:04.239
<v Speaker 1>and the computer system determines which side wins based on

0:45:04.280 --> 0:45:07.120
<v Speaker 1>the criteria, and it all sounds like a type of game.

0:45:07.160 --> 0:45:11.239
<v Speaker 1>I'd be really really terrible at As for Hearthstone, it

0:45:11.320 --> 0:45:13.680
<v Speaker 1>has been in the news recently as of the recording

0:45:13.719 --> 0:45:17.640
<v Speaker 1>of this podcast due to some political controversies and Blizzards

0:45:17.680 --> 0:45:20.840
<v Speaker 1>response to them. So in October two thousand nineteen, a

0:45:20.880 --> 0:45:25.560
<v Speaker 1>professional Hearthstone player express support for Hong Kong protesters, who

0:45:25.640 --> 0:45:29.080
<v Speaker 1>as of this recording are still protesting against the Chinese

0:45:29.080 --> 0:45:31.920
<v Speaker 1>government for reasons that are far too complicated to get

0:45:31.960 --> 0:45:36.680
<v Speaker 1>into in this podcast, but are very important. Blizzard banned

0:45:36.800 --> 0:45:40.600
<v Speaker 1>the player who supported Hong Kong from the tournament that

0:45:40.680 --> 0:45:44.040
<v Speaker 1>the player was participating in and banned them from all

0:45:44.160 --> 0:45:47.360
<v Speaker 1>future tournaments, and essentially you said you don't get to

0:45:47.400 --> 0:45:50.600
<v Speaker 1>earn any money off of Hearthstone anymore. And they cited

0:45:50.640 --> 0:45:53.880
<v Speaker 1>a rule that said players are not allowed to do

0:45:53.960 --> 0:45:57.600
<v Speaker 1>anything that would bring the game or Blizzard into disrepute

0:45:58.800 --> 0:46:01.120
<v Speaker 1>or to hurt their public imag in some way. But

0:46:01.160 --> 0:46:03.640
<v Speaker 1>that really opens up an entire can of worms, because

0:46:03.640 --> 0:46:06.320
<v Speaker 1>a lot of people suggested that it made Blizzard appear

0:46:06.480 --> 0:46:11.080
<v Speaker 1>to be complicit with the actions and philosophy of the

0:46:11.160 --> 0:46:14.440
<v Speaker 1>Chinese government, which if you've listened to my episode about

0:46:14.760 --> 0:46:18.560
<v Speaker 1>why is everything made in China, you'll understand that's not

0:46:18.640 --> 0:46:21.960
<v Speaker 1>necessarily a great thing. And after a lot of criticism,

0:46:22.040 --> 0:46:25.320
<v Speaker 1>the company walked back some of the penalties it placed

0:46:25.360 --> 0:46:28.839
<v Speaker 1>on this professional gamer. They reduced those penalties, but they

0:46:28.840 --> 0:46:32.000
<v Speaker 1>didn't remove them entirely. And the situation was made more

0:46:32.040 --> 0:46:35.480
<v Speaker 1>complicated by the fact that the Chinese government Tencent, owns

0:46:35.520 --> 0:46:39.040
<v Speaker 1>a stake in Activision Blizzard. So this led to a

0:46:39.040 --> 0:46:42.200
<v Speaker 1>big discussion about how more and more companies are at

0:46:42.239 --> 0:46:46.560
<v Speaker 1>least becoming partly dependent upon Chinese companies, and that Chinese

0:46:46.560 --> 0:46:50.680
<v Speaker 1>companies by and large are state backed entities or even

0:46:50.760 --> 0:46:54.760
<v Speaker 1>state owned entities, which means that the Chinese government itself

0:46:55.200 --> 0:46:59.520
<v Speaker 1>has influence over those companies. And so you could argue

0:46:59.640 --> 0:47:03.800
<v Speaker 1>that through these Chinese companies, the Chinese government is exerting

0:47:03.840 --> 0:47:07.360
<v Speaker 1>political influence on companies that are in other parts of

0:47:07.400 --> 0:47:10.560
<v Speaker 1>the world. UH, and that appears to be what happened

0:47:10.560 --> 0:47:14.600
<v Speaker 1>in this case. So it's still a situation that's unfolding

0:47:14.640 --> 0:47:17.799
<v Speaker 1>as of the recording of this episode. UH. And it's

0:47:17.840 --> 0:47:21.160
<v Speaker 1>something that has extended far beyond just Blizzard. There's been

0:47:21.160 --> 0:47:24.640
<v Speaker 1>a lot of discussion about this for other types of companies,

0:47:24.719 --> 0:47:28.319
<v Speaker 1>largely media companies. Let's get back to the timeline. In

0:47:28.360 --> 0:47:31.680
<v Speaker 1>two thousand fifteen, Blizzard released Heroes of the Storm, which

0:47:31.760 --> 0:47:35.960
<v Speaker 1>was a multiplayer online battle arena game or mobile UH.

0:47:36.040 --> 0:47:39.360
<v Speaker 1>This game features characters from various Blizzard titles and pits

0:47:39.400 --> 0:47:42.440
<v Speaker 1>players in an arena in which teams try to establish

0:47:42.440 --> 0:47:45.840
<v Speaker 1>control over the playing area. So generally speaking, with a

0:47:45.920 --> 0:47:49.360
<v Speaker 1>mobile UH, typically you play as part of a team

0:47:49.560 --> 0:47:52.480
<v Speaker 1>and you have a goal of protecting your team and

0:47:52.520 --> 0:47:55.839
<v Speaker 1>your little home base while you battle for control of

0:47:55.880 --> 0:47:58.720
<v Speaker 1>the playing board, and your ultimate goal is to defeat

0:47:58.719 --> 0:48:04.279
<v Speaker 1>the opposing team by either completely exhausting their resources by

0:48:04.360 --> 0:48:07.799
<v Speaker 1>killing off all of their their units, or by invading

0:48:07.840 --> 0:48:09.680
<v Speaker 1>their side of the board and taking it over and

0:48:09.719 --> 0:48:11.920
<v Speaker 1>making sure that they don't have control over any part

0:48:11.960 --> 0:48:14.799
<v Speaker 1>of the board. There are various ways of getting to

0:48:14.840 --> 0:48:18.040
<v Speaker 1>a win scenario, so this game kind of marries strategy

0:48:18.120 --> 0:48:21.759
<v Speaker 1>with action. In two thousand and sixteen, Blizzard released the

0:48:21.840 --> 0:48:24.960
<v Speaker 1>team based shooter Overwatch, and this game has lots of

0:48:25.000 --> 0:48:28.640
<v Speaker 1>different modes of play, ranging from stuff like zone offense

0:48:28.760 --> 0:48:33.360
<v Speaker 1>or defense games or escort missions and other types of games.

0:48:33.560 --> 0:48:35.880
<v Speaker 1>But it's all in the style of a first person

0:48:35.880 --> 0:48:39.120
<v Speaker 1>shooter with a you know, team based first person shooter.

0:48:39.480 --> 0:48:42.440
<v Speaker 1>So players take on the roles of one of several characters.

0:48:42.480 --> 0:48:45.239
<v Speaker 1>I think there's up to thirty now. Each of those

0:48:45.280 --> 0:48:48.440
<v Speaker 1>characters have their own strengths and weaknesses and abilities, and

0:48:48.520 --> 0:48:51.239
<v Speaker 1>play is really fast paced and a good team, like

0:48:51.280 --> 0:48:54.200
<v Speaker 1>a team that actually knows each other's strengths, they can

0:48:54.239 --> 0:48:59.280
<v Speaker 1>really coordinate to be incredibly effective. Watching a team where

0:48:59.560 --> 0:49:01.040
<v Speaker 1>they really you know each other and they know how

0:49:01.040 --> 0:49:05.440
<v Speaker 1>to communicate, watching them play this game is insane. Um.

0:49:05.719 --> 0:49:09.480
<v Speaker 1>I've played the game casually online with people I didn't know,

0:49:10.120 --> 0:49:14.160
<v Speaker 1>and we are obviously nowhere close to as effective because

0:49:14.200 --> 0:49:17.760
<v Speaker 1>we don't have that level of communication and familiarity. Also,

0:49:18.120 --> 0:49:20.360
<v Speaker 1>I found out that I am most useful as a

0:49:20.400 --> 0:49:24.440
<v Speaker 1>support class character, like someone who gives healing boosts and stuff,

0:49:24.480 --> 0:49:27.120
<v Speaker 1>because it turns out people can move faster than I

0:49:27.160 --> 0:49:30.680
<v Speaker 1>can see, and so if I land a shot on someone,

0:49:30.760 --> 0:49:34.080
<v Speaker 1>it's almost always by accident. So I'm really impressed by

0:49:34.080 --> 0:49:36.440
<v Speaker 1>people who are really good at this game. Over time,

0:49:36.440 --> 0:49:40.000
<v Speaker 1>Blizzard has released updates to Overwatch with new characters. It

0:49:40.040 --> 0:49:42.080
<v Speaker 1>didn't start off with thirty, but that's how many it

0:49:42.120 --> 0:49:45.760
<v Speaker 1>has now, and the company has reported that since its release,

0:49:45.840 --> 0:49:49.239
<v Speaker 1>the game has earned a billion dollars in revenue with

0:49:49.280 --> 0:49:52.799
<v Speaker 1>more than fifty million players. And like many other Blizzard games,

0:49:52.800 --> 0:49:57.040
<v Speaker 1>this one also has micro transactions, which players can purchase lootboxes.

0:49:57.719 --> 0:50:01.480
<v Speaker 1>Opening up a lootbox gives you a chance to win

0:50:01.600 --> 0:50:04.759
<v Speaker 1>certain types of items. You will get items in every

0:50:04.960 --> 0:50:07.840
<v Speaker 1>loot box you open. It might not be the ones

0:50:07.880 --> 0:50:10.800
<v Speaker 1>you want, but you'll get something, and they have different

0:50:10.880 --> 0:50:13.759
<v Speaker 1>levels of rarity, so some you might just get a

0:50:13.800 --> 0:50:19.560
<v Speaker 1>bunch of common pieces of of cosmetic stuff like that's

0:50:19.600 --> 0:50:22.520
<v Speaker 1>not meant to influence the actual gameplay. You're not supposed

0:50:22.520 --> 0:50:24.480
<v Speaker 1>to get any advantages, like you're not gonna be able

0:50:24.480 --> 0:50:27.920
<v Speaker 1>to jump higher or move faster or anything. You'll look different,

0:50:28.120 --> 0:50:30.360
<v Speaker 1>or you might have a different catchphrase you can say

0:50:30.560 --> 0:50:33.200
<v Speaker 1>in the game, or a different pose you might make

0:50:33.239 --> 0:50:37.400
<v Speaker 1>before after a match, but otherwise it's not supposed to

0:50:37.400 --> 0:50:40.520
<v Speaker 1>really affect gameplay. So the idea is that, yeah, it's

0:50:40.520 --> 0:50:42.719
<v Speaker 1>a way to make money, but you could play the

0:50:42.760 --> 0:50:44.880
<v Speaker 1>game without ever buying a lootbox and it's not going

0:50:44.920 --> 0:50:49.600
<v Speaker 1>to change the actual gameplay. However, lootboxes in general are

0:50:49.680 --> 0:50:53.040
<v Speaker 1>now a controversial topic. A lot of governments around the

0:50:53.040 --> 0:50:57.080
<v Speaker 1>world are investigating as to whether or not they constitute gambling,

0:50:57.520 --> 0:51:00.440
<v Speaker 1>since you cannot guarantee you're going to get a particular

0:51:00.440 --> 0:51:03.319
<v Speaker 1>item when you purchase the lootbox. But these are things

0:51:03.360 --> 0:51:06.799
<v Speaker 1>that are obviously of monetary value, or else they would

0:51:06.800 --> 0:51:11.040
<v Speaker 1>not be able to sell lootboxes. It's um something that

0:51:11.080 --> 0:51:13.440
<v Speaker 1>has not yet been resolved, so we'll have to revisit

0:51:13.480 --> 0:51:17.080
<v Speaker 1>that concept in the future. During blizz Con twenty nineteen,

0:51:17.600 --> 0:51:20.400
<v Speaker 1>Blizzard announced that it was working on the sequel to

0:51:20.440 --> 0:51:24.360
<v Speaker 1>Overwatch Overwatch two, and that it would allow players to

0:51:24.400 --> 0:51:26.799
<v Speaker 1>port over the stuff they've unlocked from the first game,

0:51:26.840 --> 0:51:29.400
<v Speaker 1>which is good because if you spend a lot of

0:51:29.440 --> 0:51:33.239
<v Speaker 1>time and or money unlocking your favorite costumes for your

0:51:33.239 --> 0:51:36.160
<v Speaker 1>favorite characters, you'd probably be a little ticked off if

0:51:36.200 --> 0:51:40.000
<v Speaker 1>that didn't transfer over to the sequel. Other upcoming Blizzard

0:51:40.080 --> 0:51:44.120
<v Speaker 1>games include Diablo Immortal, which was it is a Diablo

0:51:44.239 --> 0:51:48.239
<v Speaker 1>game based for mobile devices like smartphones. When they announced

0:51:48.239 --> 0:51:52.319
<v Speaker 1>that at blizz Con a while back, um it did

0:51:52.320 --> 0:51:56.879
<v Speaker 1>not get a good reception. Fans really unhappy because they

0:51:56.960 --> 0:52:01.040
<v Speaker 1>really wanted a full blown Diablo see quell and look

0:52:01.080 --> 0:52:02.759
<v Speaker 1>like they were going to have to settle for a

0:52:03.400 --> 0:52:07.160
<v Speaker 1>what they viewed as a watered down experience for mobile. However,

0:52:07.160 --> 0:52:09.560
<v Speaker 1>in blizz Con twenty nineteen, the company did announce the

0:52:09.680 --> 0:52:14.960
<v Speaker 1>Diablo four, the the actual full PC sequel to Diablo

0:52:15.080 --> 0:52:19.759
<v Speaker 1>three uh, and that got a slightly better response. Some

0:52:19.840 --> 0:52:23.120
<v Speaker 1>other little notes. In two thousand eighteen, Michael Mooreheim, one

0:52:23.120 --> 0:52:26.600
<v Speaker 1>of the three original founders of the company, announced that

0:52:26.640 --> 0:52:29.080
<v Speaker 1>he was leaving Lizzard, although he would remain on as

0:52:29.080 --> 0:52:31.920
<v Speaker 1>sort of an advisory role. He had been serving as

0:52:31.960 --> 0:52:36.279
<v Speaker 1>president for you know, a couple of decades, and Jay

0:52:36.360 --> 0:52:38.839
<v Speaker 1>Alan Brack, who had been with the company since two

0:52:38.880 --> 0:52:41.920
<v Speaker 1>thousand six and who had served as the executive producer

0:52:42.000 --> 0:52:44.640
<v Speaker 1>of World of Warcraft, would take over as the president

0:52:45.120 --> 0:52:48.720
<v Speaker 1>of the company the following summer. In two thousand nineteen,

0:52:48.880 --> 0:52:53.920
<v Speaker 1>Frank Pierce, the third original co founder, announced that he

0:52:54.000 --> 0:52:57.919
<v Speaker 1>was retiring and would leave Blizzard as well. Now you

0:52:58.000 --> 0:53:00.239
<v Speaker 1>might remember from a previous episode I mentioned and that

0:53:00.320 --> 0:53:03.560
<v Speaker 1>Alan Adham had left in the mid two thousand's he

0:53:03.640 --> 0:53:08.160
<v Speaker 1>wanted to pursue a career in in finance. He had

0:53:08.320 --> 0:53:11.360
<v Speaker 1>been totally burnt out on the process of developing games

0:53:11.360 --> 0:53:13.799
<v Speaker 1>and he needed to kind of step away. Well, he

0:53:13.840 --> 0:53:17.239
<v Speaker 1>actually returned to Blizzard in two thousand and sixteen, so

0:53:17.280 --> 0:53:20.440
<v Speaker 1>he still serves as a senior vice president at Blizzard Entertainment.

0:53:20.440 --> 0:53:23.160
<v Speaker 1>So while he was the first of the original founders

0:53:23.200 --> 0:53:26.120
<v Speaker 1>to leave, he's now the last one to still be

0:53:26.239 --> 0:53:29.480
<v Speaker 1>there because he came back in sixteen. He's also the

0:53:29.480 --> 0:53:32.319
<v Speaker 1>founder that Pierce and Moreheim both credited with being the

0:53:32.360 --> 0:53:36.440
<v Speaker 1>actual force that brought the company together. So I just

0:53:36.520 --> 0:53:39.400
<v Speaker 1>find it interesting that he returned not long before the

0:53:39.400 --> 0:53:42.799
<v Speaker 1>other two co founders decided to step away. Now, over

0:53:42.800 --> 0:53:45.839
<v Speaker 1>the last year or so, the company has been at

0:53:45.880 --> 0:53:48.480
<v Speaker 1>the center of criticism not just because of the Hong

0:53:48.560 --> 0:53:52.440
<v Speaker 1>Kong controversy, but also because they cut jobs while they

0:53:52.440 --> 0:53:57.040
<v Speaker 1>were also posting record profits, which that seemed weird to people.

0:53:57.600 --> 0:54:00.680
<v Speaker 1>There's been a concern that Activision is pushing a more

0:54:00.719 --> 0:54:05.520
<v Speaker 1>aggressive approach to managing costs and maximizing profits at the

0:54:05.560 --> 0:54:08.239
<v Speaker 1>expense of the quality of the games. You know, this

0:54:08.320 --> 0:54:11.840
<v Speaker 1>is tough for a company that really established a reputation

0:54:11.880 --> 0:54:14.239
<v Speaker 1>of making sure a game is absolutely the best it

0:54:14.239 --> 0:54:17.800
<v Speaker 1>can be before it launches, So that's been an issue

0:54:17.840 --> 0:54:21.240
<v Speaker 1>for Blizzard recently as well. That being said, there's still

0:54:21.280 --> 0:54:24.920
<v Speaker 1>an enormous amount of anticipation for Blizzard games. That their

0:54:25.000 --> 0:54:28.960
<v Speaker 1>games tend to be really well received by critics and

0:54:29.040 --> 0:54:33.040
<v Speaker 1>by fans alike. It's not a guarantee in every case, obviously,

0:54:33.520 --> 0:54:38.040
<v Speaker 1>but they've got a really strong track record, so they're

0:54:38.080 --> 0:54:42.600
<v Speaker 1>still weathering some pretty rough criticisms, and the Activision connection

0:54:42.719 --> 0:54:46.040
<v Speaker 1>remains something that a lot of fans are very leery about.

0:54:46.719 --> 0:54:49.560
<v Speaker 1>But I expect that we're gonna continue to see a

0:54:49.560 --> 0:54:54.440
<v Speaker 1>lot of passionate support and anticipation around their games, and

0:54:54.640 --> 0:54:58.000
<v Speaker 1>blizz Con every year is a testament to that because

0:54:58.360 --> 0:55:01.719
<v Speaker 1>it sells out within half an hour of tickets going

0:55:01.920 --> 0:55:05.560
<v Speaker 1>on sale. So I believe that it happens every year

0:55:05.560 --> 0:55:08.359
<v Speaker 1>in Anaheim, California. I have never been. I know I've

0:55:08.360 --> 0:55:11.600
<v Speaker 1>got friends who go there or have gone there pretty

0:55:11.680 --> 0:55:14.160
<v Speaker 1>much every year. One of these years, I'm gonna have

0:55:14.160 --> 0:55:17.920
<v Speaker 1>to try and get my way over there. But you know, hey, Blizzard,

0:55:17.960 --> 0:55:20.200
<v Speaker 1>if you ever want meet out there, let me know.

0:55:20.640 --> 0:55:24.400
<v Speaker 1>Otherwise I'll just have to take some vacation time. Not

0:55:24.520 --> 0:55:27.560
<v Speaker 1>that I am above that. I'd be happy to, but

0:55:27.560 --> 0:55:30.160
<v Speaker 1>if I can get there forming order, I'll just come

0:55:30.200 --> 0:55:33.160
<v Speaker 1>out there, you know. So that wraps up this episode

0:55:33.360 --> 0:55:37.719
<v Speaker 1>of text Stuff, this exhaustive look at Blizzard. It was

0:55:37.800 --> 0:55:40.719
<v Speaker 1>fun to take a deeper look at this company and

0:55:40.760 --> 0:55:43.759
<v Speaker 1>to really look at some of the things that drove

0:55:43.920 --> 0:55:47.920
<v Speaker 1>the decisions behind making those games, as well as some

0:55:48.040 --> 0:55:50.600
<v Speaker 1>of the stories, like the controversies behind them that I

0:55:50.640 --> 0:55:53.879
<v Speaker 1>wasn't really familiar with before I started researching this. If

0:55:53.920 --> 0:55:56.480
<v Speaker 1>you guys have suggestions for future episodes of tech Stuff,

0:55:56.480 --> 0:55:58.920
<v Speaker 1>send me an email the addresses tech Stuff at how

0:55:59.000 --> 0:56:01.360
<v Speaker 1>stuff works dot com or drop me a line on

0:56:01.400 --> 0:56:03.560
<v Speaker 1>Facebook or Twitter. Hand over both of those is tech

0:56:03.600 --> 0:56:07.600
<v Speaker 1>Stuff hs W. Don't forget we have our website tech

0:56:07.680 --> 0:56:11.360
<v Speaker 1>Stuff Podcast dot com that has our archive of every

0:56:11.440 --> 0:56:15.479
<v Speaker 1>episode text Stuff has ever recorded, and you can also

0:56:15.600 --> 0:56:18.320
<v Speaker 1>find a link to our online store, where every purchase

0:56:18.360 --> 0:56:20.719
<v Speaker 1>you make goes to help the show. We greatly appreciate it,

0:56:21.120 --> 0:56:28.840
<v Speaker 1>and I'll talk to you again really soon. Text Stuff

0:56:28.880 --> 0:56:31.200
<v Speaker 1>is a production of I Heart Radio's How Stuff Works.

0:56:31.360 --> 0:56:34.160
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0:56:34.280 --> 0:56:37.520
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