Inadvertently, platform holders.
Well, somewhat inadvertently.
Inadvertently, platform holders.
Well, somewhat inadvertently.
Veknoid_Outcast said:
Without full access to game budgets, we can't know for sure either way. In the absence of hard data to support either side, we're left with circumstantial evidence like that investor report. Maybe it doesn't disprove the claim, but has anyone, anywhere, proven it? After catching EA, Activision, WB, et al. with their pants down, I'm going to remain skeptical. |
Let's just consider sony Shu saying from every 10 games they release 6 have loss, 2 break even and the 2 sucessfull pay for the other 6 and give profit.
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
http://gamrconnect.vgchartz.com/post.php?id=8808363
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"
http://gamrconnect.vgchartz.com/post.php?id=9008994
Azzanation: "PS5 wouldn't sold out at launch without scalpers."
Gemmol31 said: I feel that videogame companies, should price games properly, and if they do not, we as customers should demand better and not buy those games. There are very few companies who are giving us way more than other companies for $59.99, while some take advantage and give us lowest amount of content for $59.99. I remember when the first TitanFall come out and people really argue back with me saying the price justify the content, when you paying 60 for way less content than what Call of Duty was giving, which not only gave more maps at the time, but also had a story mode, while the first Titanfall did not have a story mode, and had less maps, but still charge $59.99.......I said at that time, the game should of been $24.99 to $29.99 the most. People on every gaming website who only have a sony or xbox system, just like to get taken advantage of, as long as it have graphics they do not mind companies ripping them off, when you suppose to buy a game for gameplay. If graphics so important, just watch more Pixar films. |
There are plenty of games that take more than 200h to finish, and it isn't necessary that a lot of them do it. Also a lot games that take a long time haven't had much more dev time or cost than shorter ones, as their development can be simple for the added time.
VideoGameAccountant said:
That's a problem with budgets more than anything. These companies can make games cheaper. They can focus less on graphics which would likely save on time and money, but they refuse. The major publishers want this because it keeps competition out (since smaller firms can't make games as big and with the pretty graphics). As myself and others said, they can increase the price if they want. Also, the whole story of "games are too expensive" is a farce. Go look at their financials. They are raking in money. The whole "we need microtransactions because games are expensive" is putting lipstick on a pig. |
Could be a problem on budget, except there is a market that likes the graphic investment you seem to abhoor.
Teeqoz said:
The original post just said it was too low, which led to publishers pursuing other ways of increasing revenue. None of the companies are in it just to break even and then have some lunch money left over. You take a rather big risk every time you publish a big game, so you should expect a decent return on your money. We have data on inflation adjusted game prices, do you have numbers on the added earnings for digital sales? I know they benefit the big three, as they are the platform holders, but I was under the impression that most of the added margin from moving from retail to digital didn't benefit the publishers for this exact reason. And once again, I'm not saying microtransactions are absolutely necessary. That their increased prevalence, along with other attemps to find new revenue streams, are in part caused by lower inflation adjusted game prices coupled with higher game prices though, is something I don't doubt. We both agree that it's a problem. I'm just offering a solution other than to trust the good of EA's heart. As for how you keep quoting EA's statement about Battlefront 2, consider their statement. It's not in relation to recouping the game's development budget. It's about their overall financials. Now, if we don't believe stopping microtransactions impact EA's earnings at all, then we also paradoxically think that EA make no money from microtransactions. Because that's a rather unlikely situation, this leads us to conclude that what EA actually meant was that the lost earnings from a short break in microtransactions for that single title wouldn't impact their total earnings for the entire year all that much. Do you, after all, think EA would say the same thing if laws were passed preventing EA from including microtransactions in any game? That it would have no impact on earnings? Of course it would. That's why that argument doesn't hold up to scrutiny. |
Yep, Microtransactions and lootboxes make no money, but for some reason publishers keep including it =]
Your point just show that companies can make contigency planning to keep their bottomline.
Ka-pi96 said:
Is there actually evidence to suggest that game sales overall are becoming more frontloaded? Or just physical game sales? It makes sense to me that digital sales would be less frontloaded than physical, given that physical copies will eventually stop being produced, they're much more attractive as impulse purchases, and of course there are some pretty good digital sales later on in a games life. It could perhaps be that with a greater shift to digital it appears games are more frontloaded, but that's more because later buyers are much more likely to go digital than they were previously. Besides, Gran Turismo Sport is a very recent example of a game that initally underperformed, had some price drops and then its sales picked up. |
On the front loaded... considering the day one is preloaded it's quite possible that it does make it even more frontloaded (on the profit).
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
http://gamrconnect.vgchartz.com/post.php?id=8808363
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"
http://gamrconnect.vgchartz.com/post.php?id=9008994
Azzanation: "PS5 wouldn't sold out at launch without scalpers."
DonFerrari said:
Could be a problem on budget, except there is a market that likes the graphic investment you seem to abhoor.
|
Except its a small segment of the market. Always has been. You can look back at the history of games and see that's the case. The most successful game of this decade, Minecraft, looks like an N64 game. The reason for the big budgets is to wall off against competition. My point is that increasing the price really isn't the solution. It's scaling back games so that you can turn a decent profit from selling the game. A great example, funny enough, is comparing these smaller Japanese studios to the studios EA absorbed. You have Dead Space 3 which sold a couple million not making it's money back due to a bloated budget and marketing. Conversely, you look at Platinum and they can still stay in business despite selling less. They don't have these outrageous budgets and marketing. Maybe not a perfect example sure, but my point is that you can resolve the issue of profitability in games without raising the price or charging customers out the ass for extra junk. Just change the budget and marketing. However, big publishers don't want to do that so that's how we are in this hellscape.
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Market is the real price decider.
The reality is that the price for a AAA game at launch in the US is less than $59.99. Many of us are buying at Best Buy for 20% off, bringing the price down to $47.99. They also offer a $10 preorder bonus on some games, bringing it down to a net of $37.99 in those cases. Others buy at Amazon, which offers good preorder discounts as well.
All things considered, I'd bet that the average price paid at launch for the standard edition of a AAA game is about $49.99.
They say Microsoft decided on that price when they released the Xbox 360 in 2005.
But actually it was a communion with all the large third parties that settled, and continue to maintain the industry standard at that price.
It used to be 59,99 prior to 1997. But in order to be more competitive, Sony dropped the price of all PS games to 49,99, and the rest of the industry just followed. The reasoning back then was that, CDs were so cheap to manufacture, the 59,99 price tag was unjustified.
The reason given for the increase in 2005 was the starting of the "HD era", as touted by Microsoft. Development costs for games were going to increase too much and they did, so the price had to be higher. I don't think that came from Microsoft actually, but the third parties. They were the ones that demanded it, and likely are the ones keeping it at that level.
Well its MS, Sony, and Nintendo. I don't believe its possible to release a game for more than $59.99 on those platforms.
UNLESS its some sort of special edition that includes bonus content like DLC. But even then a standard $59.99 version always exists when that happens.
Recently Completed:
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You could thank cod:mw2 for beginning that trend. It used to be 50 bucks before then, if I remember correctly.
No offense to modern warfare 2, it's a solid game.
Bet with Intrinsic:
The Switch will outsell 3DS (based on VGchartz numbers), according to me, while Intrinsic thinks the opposite will hold true. One month avatar control for the loser's avatar.
SKMBlake said: Actually 60$ is way to low for AAA games, that's why all the lootboxes crap are common now |
Loot boxes exist because the potential profit from some users can be huge, some users might spend hundreds of dollars on loot boxes.
EA launches games for $60, but they also have a tendency to drop the prices low and fairly quickly. I mean you can buy most EA for $5-10 just a year after release or play them for a few bucks via services like EA/Origin Access. Why? Loot boxes and DLC help subsidize these games.
I think $60 is a sweet spot. Its not too expensive for the average consumer. Big budget games can also be profitable at that price is they sell many units. Its a balance, publishers/developers need to create a budget that matches potential sales.
Recently Completed:
River City: Rival Showdown for 3DS (3/5) - River City: Tokyo Rumble for 3DS (4/5) - Zelda: BotW for Wii U (5/5) - Zelda: BotW for Switch (5/5) - Zelda: Link's Awakening for Switch (4/5) - Rage 2 for X1X (4/5) - Rage for 360 (3/5) - Streets of Rage 4 for X1/PC (4/5) - Gears 5 for X1X (5/5) - Mortal Kombat 11 for X1X (5/5) - Doom 64 for N64 (emulator) (3/5) - Crackdown 3 for X1S/X1X (4/5) - Infinity Blade III - for iPad 4 (3/5) - Infinity Blade II - for iPad 4 (4/5) - Infinity Blade - for iPad 4 (4/5) - Wolfenstein: The Old Blood for X1 (3/5) - Assassin's Creed: Origins for X1 (3/5) - Uncharted: Lost Legacy for PS4 (4/5) - EA UFC 3 for X1 (4/5) - Doom for X1 (4/5) - Titanfall 2 for X1 (4/5) - Super Mario 3D World for Wii U (4/5) - South Park: The Stick of Truth for X1 BC (4/5) - Call of Duty: WWII for X1 (4/5) -Wolfenstein II for X1 - (4/5) - Dead or Alive: Dimensions for 3DS (4/5) - Marvel vs Capcom: Infinite for X1 (3/5) - Halo Wars 2 for X1/PC (4/5) - Halo Wars: DE for X1 (4/5) - Tekken 7 for X1 (4/5) - Injustice 2 for X1 (4/5) - Yakuza 5 for PS3 (3/5) - Battlefield 1 (Campaign) for X1 (3/5) - Assassin's Creed: Syndicate for X1 (4/5) - Call of Duty: Infinite Warfare for X1 (4/5) - Call of Duty: MW Remastered for X1 (4/5) - Donkey Kong Country Returns for 3DS (4/5) - Forza Horizon 3 for X1 (5/5)
People always ignore what I say :(
Maybe I'm too condescending.. I'm sorry about that, it's not intentional.
Gonna try to be nicer :)