Blizzard Has Banked $26 Million From WoW Authenticators

Mike Kayatta

Minister of Secrets
Aug 2, 2011
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Blizzard Has Banked $26 Million From WoW Authenticators



World of Warcraft might be down 800,000 players, but that hasn't stopped Blizzard from raking in a tidy profit in other ways from those who've stayed.

Despite widely reported subscription losses, World of Warcraft is still making Blizzard a silly amount of money. Between the card game, in-game microtransactions, apparel, plush toys, books, and assorted collectables, Blizzard's most popular IP isn't going to be dipping into the red anytime soon. It seems it's even been profiting heavily on optional account security in the form of Battle.net Authenticators, a small device that helps protect your level 85 shaman from those noisome twelve-year-old hackers sporting a grisly penchant for shady Craigslist dealings. These little gizmos cost $6.50 a pop, and have already made Blizzard an enviable $26 million bucks.

The authenticator works thusly: you buy a little WoW-skinned keychain from the Blizzard store, then press a button on its end each time you want to log on. A small screen on one side shows a specially generated code, meaning you suddenly have a second, nearly infallible layer of protection for your account. Character hacking has become so rampant in the game that upward of 40% of WoW players now use one of these nifty devices to protect themselves.

Normally, gamers might get a bit uppity about having to pay extra to secure their accounts, but in this case, there's a legitimate additional cost for Blizzard to make this available. And seeing as how they've already managed to bag $26 million smackers by offering it, this seems like an easy win-win. With database hacking in vogue right now, it makes me wonder if we'll see similar devices for other services soon.

Source: Geek.com [http://www.geek.com/articles/games/blizzard-has-made-26-million-just-from-battle-net-authenticators-20111230/]

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Rad Party God

Party like it's 2010!
Feb 23, 2010
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I'd definitively buy one of these if I owned more than 2 high level characters, plus it makes you look a bit more silly important.
 

VIVIsectVI

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Nov 9, 2006
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Except they have to cover the shipping of the authenticators like the one pictured, and the iPhone/Android authenticators are free. Blizzard banking $26,000,000 from authenticators is an absolute joke.
 

drkchmst

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Mar 28, 2010
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VIVIsectVI said:
Except they have to cover the shipping of the authenticators like the one pictured, and the iPhone/Android authenticators are free. Blizzard banking $26,000,000 from authenticators is an absolute joke.
thank you for bringing up the iphone/droid free authenticators. I used to use the one on droid but >.> when I upgraded my OS the app kind of got wiped and I had to go through a lot of trouble to get it removed from my account so I could access it again.
 

Staskala

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Sep 28, 2010
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Revenue != profit
The VASCO DIGIPASS GO 6 (IIRC the WoW authenticator is either the same or a slightly modified model) costs around 20$ if you buy one on its own. There is no bulk discount big enough to make Blizzard turn a profit here considering they're also shipping it for free.
 

Treblaine

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Jul 25, 2008
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It's chicken feed compared to the subscription fee.

From the 800k 10 million remaining subscribers they'll rake in about $140 million well over $1 billion per annum.
 

Eri

The Light of Dawn
Feb 21, 2009
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Treblaine said:
It's chicken feed compared to the subscription fee.

From the 800k subscribers they'll rake in about $140 million.
800k? What are you talking about? They have 10 million subscribers.
 

Reaper195

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Jul 5, 2009
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Mike Kayatta said:
Normally, gamers might get a bit uppity about having to pay extra to secure their accounts,
I don't know why....I have no problem paying taxes since as far as I can tell, I'm paying the cops to come to my aid when some dude tries to steal shit from my house. And considering these things are six bucks...that's like, what...four chocolate bars?
 

davidsoc

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Mar 8, 2011
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interesting as the amount of money they make is...the amount of their player base that actually uses one, or owns one (of any kind) is very minimal. I read an article somewhere (dont recall where) recently that stated only about 40% of their subscriber base has one. I find it odd that with the amount of nefarious stuff going on with online gaming accounts and what not how few people actually use one. Especially considering you can get a free app for one.

Suffice it to say the amount of "illegal" business that goes on with this particular product (account hacks, sponsored players violating terms, gold buying and selling...etc) there is a very lacksidasical attitude for people with a lot of investment.

As to the amount of money that Blizzard makes, they have the most popular, and the most modeled game in the genrre (arguments about whether is it the best, and any other opinions withheld) of course they make a ton....how much money have they made off purely virtual items (pay for mounts, pay for pets...)? I would hope that for all the secondary stuff (anything besides owning the software, and subscription fees) that their authenticator revenue would be the biggests (even with the free apps).
 

teebeeohh

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Jun 17, 2009
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i would be really interesting how expansive hacked accounts have been for blizz in the past(customer support/people leaving) and whether or not they made a net win with the security.
Because i don't believe in blizz doing stuff out of the goodness of their hearts.
 

Baldr

The Noble
Jan 6, 2010
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VIVIsectVI said:
Except they have to cover the shipping of the authenticators like the one pictured, and the iPhone/Android authenticators are free. Blizzard banking $26,000,000 from authenticators is an absolute joke.
They are not making on the money on the authenticators per say, they are making money by not having to deal with hacking and restoring accounts on such a wide scale anymore.

I lost my physical authenticator. I thought it would be a hassle. Only took a 3 minute phone call Blizzard Billing to get it removed.
 

Vrach

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Jun 17, 2010
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I should bookmark this for the next time someone tells me MMO companies sell authenticators at a loss...

Not that I'm complaining, there's a free alternative for cell phones and such, but still hate whenever I see that claim. Still think it'd be fair to include those things with the game tbh, yeah, it might cost them to make them, but it saves them a hell of a lot of money (by relieving the load on customer service), so it's not like they need to earn more from them. Besides, those things break down and the free authenticator within the box would probably earn them some extra sales in the long run when people start feeling they actually need one.
 

Baldr

The Noble
Jan 6, 2010
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Requiring email address as Battle.net accounts was probably a dumb move. Although it makes the service easier and more flexible when it comes to dealing with customers. It pretty much gave access to a ton of accounts to gold sellers and hackers, who had bought(or bought information from) legitimate wow related sites like(supposedly) allakhazam and thottbot for example. This gave them a huge database of email address of people who played wow. They no longer needed to phish for a username, all they needed was crack the passwords. That why there was such a huge amount of compromised accounts after the transition.
 

TehMadness

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Jul 2, 2009
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More power to 'em. I have an authenticator, and I've had it since my account got hacked waaay back when. Bought one; never looked back. I prefer it to the app version, 'cos although it costs me money, it's far harder to lose. Like any decent PC gamer, I realise that I'm usually one piece of equipment throwing a tantrum away from losing so much data. This is why I prefer physical disks to downloads now.

And why the hell is anyone complaining that Blizzard's intentions weren't purely altruistic? Sure, they're gonna make money on 'em; they cost money to make and I'm not gonna grudge them a little bit of cash for it. Yeah, I might pay a subscription fee for it, but I'm really not gonna sweat about losing £8 for a physical object that keeps my account safe.

You're just LOOKING for stuff to complain about now. WoW-hate is so 2009.
 

TehMadness

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Jul 2, 2009
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Notthatbright said:
I wonder how soon will see them for Diablo 3 accounts.
"Your shit's not secure at all! Buy this lock!"
FTFY.

Most of the problem comes from the users themselves. Protecting your account on your end is actually quite hard. No porn isn't something I could live with.
 

Raika

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Jul 31, 2011
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I still have my old one. It's on my keyring right next to my authenticators for Star Wars: The Old Republic and Final Fantasy XIV. I like having those things for some reason.