SneakersSO
Member
It is in a user acquisition phase, but the budget spent to acquire 1 new user is quite high. There is a scale point they have internally, but those figures have always been pretty unrealistic, given how the last couple of years went on growth.I figured it was considered in a user acquisition phase and worth dumping money into. That's interesting that it's possibly viewed like you describe in the company.
I laid out in an earlier post that this ATVI deal ultimately solves 2 immediate issues they are having while trying to float these insane budgets along - they needed a platform they could grow on that wouldn't force them to take a 30% cut for integrating into their userbase (Battle.Net), and it would be an immediate and sustained revenue boost for the division itself, which has had a major hit due to whole title sales falling out from under them entirely.
So far, the big gambles they have made to grow a user out of naturally advantageous platforms/storefronts for them include their efforts to push more users into xCloud, and expanding the Xbox app to be a GP app and start having them ship with new-gen Smart TVs. Battle.Net will just keep them afloat while they hope some of their other bets for explosive growth payoff.