pezus said:
HappySqurriel said:
pezus said:
HappySqurriel said:
Define "good one"?
From my understanding, most bundled software produces far less per-unit revenue for third party publishers than a retail sale and they enter into these contracts because the high volume more than makes up for the reduced revenue. I don't know the figures from this contract but I wouldn't be surprised if Ubisoft was earning $5 or $10 per unit rather than the $20+ they probably get at retail.
In other words, while a game like Assassin's Creed may break even on development costs with 250,000 to 500,000 games sold digitally (where they cut out the retailer) or with 500,000 to 1,000,000 sales at retail, they probably require far more sales to break even on bundled software.
Beyond that, they won't be able to bundle all of the software they produce and the more software that is bundled the lower of sales they can expect from bundled software.
The core problem for publishers with the PS-Vita still stands, it is selling at a rate below 5 million units per year which means it doesn't have the userbase to support the budgets of PS-Vita games. It needs to maintain roughly double its sales to become a viable platform for strong support.
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Good = 1m in sales, 700k-800k of that in ~two months
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If they spent $10 Million on development, $10 million on marketing, and earn $10.00 per bundled game is 1 million sales when most of them are bundled really good? It may be good in comparison to the 250,000 sales at $20 per unit you would have received if it wasn't bundled, but in general it is pretty awful; and certainly wouldn't be a strong argument for spending another $10 million on development with an additional $10 million on marketing for another PS-Vita game.
In general, games for the Nintendo DS cost (about) 1/2 to 1/4 to develop than a similar game for the 3DS or PSP does, and games for the 3DS or PSP cost about 1/2 to 1/4 to develop than a similar game for the PS-Vita does; while 1 million sales for a DS game may be fantastic it is probably pretty mediocre for the 3DS or PSP, and it is pretty bad for the PS-Vita. This progressively increasing cost on higher detailed graphics is the main reason why studios were going bankrupt after million+ selling games on the HD consoles last generation, while 500,000+ sales for a Wii game typically meant there would be (many) sequels.
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What do you think they expected for the game? It was rushed together in around a year or less if I recall correctly. Don't you think Sony paid them up front for the bundle? I'm also pretty sure Sony handled most of the marketing, so why would Ubisoft not be pleased? They've even said so themselves.
Where are you getting the 1/2-1/4 for 3DS development vs. Vita? I've seen nothing that hints at that.
Yeah, 500k+ sales for Wii 3rd party games certainly ensured continued 3rd party support...no
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It was said long ago that Vita dev costs were closer to that of the PSP than the PS3.
http://www.shacknews.com/article/69209/vita-development-costs-closer-psp
http://www.industrygamers.com/news/playstation-vita-dev-costs-closer-to-psp/
http://www.gamespot.com/forums/topic/28762216/playstation-vita-development-costs-closer-to-psp-than-ps3
3DS dev costs are said to be similar to that of the Wii or 3x that of the DS.
http://www.nintendoworldreport.com/news/23494
http://www.ign.com/articles/2010/11/22/3ds-to-triple-ds-development-costs
http://www.siliconera.com/2010/06/22/3ds-development-costs-may-approach-wii-levels/
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