My guess is unlike film studios that are really stuck with a model that goes through theatrical distribution and takes a signification amount of the profit away
You guess? You guess wrong. The vast majority of box office ticket sales goes to the film studios, not the theaters. You ever wonder why popcorn and hot dogs are so damn expensive...that's the theater's bread and butter.
Secondly, in what shape or form are the movies for Starcraft II a linear narrative that would make any sense outside of the context of the game.
Raynor: (slurring with tumbler of wiskey in hand) Let's gear up to go fight this major battle!
*end scene*
Raynor: (grimy and slightly beat up) Well, that battle sure was epic!
Yeah, sounds fucking phenomenal.
Thirdly, hour or hour and a half of cinematics in Starcraft II? More like 30 or 40 minutes. For that you think you can justify a $20-$30 price point compared to a 90 minute film? I didn't pay that much to go see Avatar, on the IMax, in 3D.
Holy fuck, my douchebag meter just broke. Fucking delusional. Please, do go forward with this plan so that it can fail dismally and perhaps Activision will replace you with a human being who has a soul and half a brain.