PROPERTIES LIKE FACEBOOK AND MYSPACE don’t just have to deal with issues like user attrition from “social network fatigue” or inventory monetization challenges. According to Bobby Kotick, CEO of Activision, they also face a growing threat from an unlikely source — massively multiplayer online (MMO) games. Speaking at the Morgan Stanley Technology Conference on Tuesday, Kotick said that MMO games like World of Warcraft are a unique blend of “a social network with an entertainment experience,” and they’re drawing in users and their wallets by the millions–with advertisers eager to follow.
World of Warcraft recently surpassed the 10 million subscriber mark in January, making it the most popular MMO worldwide. Kotick said that players spend an average of 3.5 hours per day with the game–with particularly rabid fans clocking in 6 hours. “It’s replacing TV and other activities for a certain type of audience,” Kotick said, even eclipsing time spent congregating on social networks.