Set against the backdrop of a stunning visual landscape, the film Warcraft has sparked a significant controversy within the global gaming community. Although the film’s revenue in the North American market and some other countries hasn’t been particularly high, it has achieved considerable success in the Chinese market, generating substantial box office returns of hundreds of millions of USD.
According to calculations from Hollywood Reporter, the film has grossed approximately 430.1 million USD globally. More than half of this revenue has come from the Chinese market, and experts analyze that the popularity of World of Warcraft in this market has made it a significant contributor to the film’s overall earnings.
The impressive revenue of 430 million USD, after deducting costs for distribution, marketing, and production expenses of around 160 million USD, leaves Warcraft with a loss of approximately… 15 million USD.
Many analysts may be surprised by why the film is incurring such a significant loss despite its high earnings. The simple answer is that while the revenue from the Chinese market (220.8 million USD) is substantial, the costs associated with marketing Warcraft in this region are also quite high.
Numerous advertising campaigns and promotional events have been conducted in the country to promote Warcraft in the months leading up to the film’s release. These expenses also play a significant role in the overall revenue equation for Warcraft.
On top of that, the film’s disappointing performance in the North American market is a significant factor contributing to Warcraft’s struggle to achieve high revenue. Estimates indicate that the film only grossed about 46.6 (over 10%) million USD when released in the U.S., a figure that is relatively low compared to other blockbuster films, especially those in the Fantasy genre like The Lord of the Rings or The Hobbit.
Given this situation, some analysts have suggested that if Legendary Pictures intends to continue producing sequels, they should consider targeting markets with potential and interest in Warcraft, such as China. A Warcraft film infused with Asian elements could help the franchise tap into this potential market better, and of course, the current revenue dilemma would also need to be resolved.
