Forums - Gaming Discussion - Can someone explain this to me? Industry Crash related

Ever since the financials for Capcom were released and they called the sales of RE6 a dissappointment (sold almost 5M) I'm actually quite worried. When I first came to this site games that sold 5M were considered a huge success...now to see that those numbers are considered a failure...is troubling to say the least. Is the industry headed towards another crash? is there anyway to rectify this problem? I know the costs for this gen were considerably higher than the PS2XboxGCN gen but I just attributed that to the upgrade of going from SD to HD...and I hoped with Sony and Microsoft coming out with consoles that were more along the lines of PCs that dev teams would be able to manage their costs much better since the hardware wouldn't be so complicated again but that doesn't seem to be the case....The future seems very dark for gaming and Im not sure how it's come this point. How can it be fixed?



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Do the opposite of what Square Enix is doing.

 Nintendopie  Was obviously right and I was obviously wrong. I will forever be a lesser being than them. (6/16/13)

A game company must have the deepest commitment, the most serious mind. This one a long time have I watched. All his life has he looked away... to the future, to the horizon. Never his mind on where he was. Hmm? What he was doing. Hmph. Top graphics. Heh. Big budget. Heh. A successful game company craves not these things. He is reckless

Mobiles.. You will see more and more games from big publishers going mobile to fund their more expenisve games..

http://i60.tinypic.com/ev146p_th.jpghttp://i50.tinypic.com/1553y14.jpghttp://oi56.tinypic.com/2v16t81.jpghttp://oi39.tinypic.com/5eg9y1.jpg

Face the future.. Gamecenter ID: nikkom_nl (oh no he didn't!!)

NiKKoM said:
Mobiles.. You will see more and more games from big publishers going mobile to fund their more expenisve games..


But why fund a more expensive game if it makes no profit? I think the OP is referring to the AAA games turning a profit themselves.

 

OP: I think this next gen you will see less innovation as development costs rise, seeing as how one game bombs and your company could be out of business.

So companies will go with the safe games like sequels, Call of Duty-esqe shooters, etc.

It's debatable how much development costs will rise, but with this current business model, i forsee less game for 60-70$ and more being left out for DLC, companies blocking used game usage to try to recoup the costs. Very unfriendly for consumer.

 

If the next gen doesn't start off with a bang, much like the Wii U, expect a panic mode to hit publishers, then who knows what will happen.



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Booyah said:

If the next gen doesn't start off with a bang, much like the Wii U, expect a panic mode to hit publishers, then who knows what will happen.

I knows what will happen, most publishers will continue making cross-gen multiplats until 8th gen takes off. Even more Japanese publishers may retreat to 3DS.



When they say it was disappointing with "only" 5M sales, I don't think that means it didn't make a profit. These games don't exist in a bubble and I think that some of their larger franchises (like RE6) are expected to pick up the slack of the losses they've incurred building less successful titles.

I think the same is likely true of Tomb Raider, and Square-Enix; they expected the profit from the game to help cover the losses of their MMO development.

the_dengle said:
Booyah said:

If the next gen doesn't start off with a bang, much like the Wii U, expect a panic mode to hit publishers, then who knows what will happen.

I knows what will happen, most publishers will continue making cross-gen multiplats until 8th gen takes off. Even more Japanese publishers may retreat to 3DS.

Which might cause 8th gen to never take off if almost all games are cross-gen, or slow the adoption rate even more.



Scoobes said:
When they say it was disappointing with "only" 5M sales, I don't think that means it didn't make a profit. These games don't exist in a bubble and I think that some of their larger franchises (like RE6) are expected to pick up the slack of the losses they've incurred building less successful titles.

I think the same is likely true of Tomb Raider, and Square-Enix; they expected the profit from the game to help cover the losses of their MMO development.


If we only knew what the games cost to develop, but its mostly speculation at this point.

 

Potentially if the expected RE6 to sell 7 million copies, then they could have budgeted 300 million after marketing and what not, which 5 million would be breaking even. I doubt that is what was spent on RE6 but I bet it was pretty high cost if 5 million is dissapointing.

 

I think this speaks more to the general state of the games industry where 5 million sold is considered dissapointing for a AAA title. It would probably be easier to understand if development costs were released instead of mostly speculation.



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Scoobes said:
When they say it was disappointing with "only" 5M sales, I don't think that means it didn't make a profit. These games don't exist in a bubble and I think that some of their larger franchises (like RE6) are expected to pick up the slack of the losses they've incurred building less successful titles.

I think the same is likely true of Tomb Raider, and Square-Enix; they expected the profit from the game to help cover the losses of their MMO development.

That's probably the best explanation.

Also there's the fact that development now takes more time than before so they can't launch as many games each year as they did before. That means that each game has to make them win more money than before to get the same results.



 

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