DonFerrari on 12 December 2016
naruball said:
I could be 100% wrong about this, but they way I interpret it is, Sony funds certain projects (like Tearaway) that are not guaranteed hits (like Uncharted or God of War are), hoping that these games will turn a profit. Most of them (rougly 6/10 if Yoshida is to be believed) don't turn a profit, but some of them do. Little Big Planet must have been such a title. Thankfully for Sony it was a good investment.
I have serious doubts that Sony funds projects knowing full well that they will flop. In the case of the Last Guardian, I think they saw no reason pulling the plug after spending so much money on it. They would have received backlash even from people with zero interest in the game.
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I don't think they go out of their way to fund floppers, but what Yoshida said is more on the line of risk and benefits... from 10 games 4 turns profit and 6 don't.. and from the 4 likely 2 only pay themselves while the other 2 will generate enough money to cover for the 6 loses and still will have money in the bank. That is probably a way they manage their risk on trying to get a new game to rise to the position of profitter.