Activision Blizzard has a $500 million war chest in order to make Bungie's Destiny its next multi-billion dollar franchise, the CEO Bobby Kotick revealed during the Milken conference in Los Angeles last week.

The figure, since confirmed to Reuters by an Activision Spokesperson, is said to include not only the cost of development but also marketing, packaging, infrastructure support, royalties and other costs.

Activision Blizzard and Bungie agreed a 10-year deal back in 2010, giving the publisher worldwide distribution rights and a say in the game's development as a franchise.

"If you're making a $500 million bet you can't take that chance with someone else's IP," Activision CEO told the Milken conference. "The stakes for us are getting bigger."

Approximately 16 million units of Destiny would need to be sold in order to break even on the first title, analysts have said. This is a figure which Sterne Agee analyst Arvind Bhatia believes will be "tough but it could post a big surprise".

Bhatia predicts worldwide sales of approximately eight million units, which for a new IP would be a very respectable start from which to build a major franchise.

Destiny launches September 9 for PS4, PS3, Xbox One and Xbox 360.

Source: Reuters