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Forums - Nintendo Discussion - Reggie, the Million games profit and a unfortunate declaration to NYT

Mr Khan said:

Somebody screwed up, certainly. Why else would we be seeing a sequel to No More Heroes in its 400k-selling glory?

 

Or Kororinpa: Marble Mania. It already has a sequel despite only just over 100k sales between Japan and the US.



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Reggie speaks the truth.



Unless Nintendo is taking some serious licensing fees from devs, this has to be inaccurate.

After retail and licensing, a new Wii game brings about $30 to the publisher (who often provide the funding/budget for the dev) Of that, maybe $10 per copy is attributed to manufacturing and advertising. If the publisher funded the game for development, they don't give the developer even a dollar more until they recoup their investment plus make a decent profit. After that, the devs will be given a royalty per copy sold.

So, back on point, the investor (publisher) makes $20/copy. Wii games cost between 5-10 mil to make.
So 500K units * $20/unit = $10 mil. Thus, 500k units need to sell in order for an investor to make back their money.

Now, with an independent dev, they fund and publish their games themselves. Thus, they never have to split profits with anything beyond development/manufacturing/advertisement costs. This is why indie game development is much more appealing (plus getting to keep your IP).

To further the example here, I fund my dev team's current project, Broken Attitude Studios. When all is said and done and the game is released, I'll have invested 50K-100k. We will be selling the game for around $10-$15/copy. So in order for me to recoup my profit, our game needs to sell 5k-10k units. Anything beyond that goes towards funding for our next project.



OK folks. What we have here is an indirect quote. Which means we have a paraphrasing -- and not a retelling -- of what Reggie said.

Given the context and other knowledge (including how badly reporters can mangle things based upon 15 years of personal experience), the reference to "big budget" (aka AAA) titles and the inference of worldwide (and not American/North American) sales was completely missed.

Finally, given that Reggie's title was completely messed up (unless he has been demoted and no one knows about it), you have to wonder about the accuracy of some of the other statements.

Unfortunately, this will be used to talk about how bad the Wii "fails" -- even though the second part of the statement -- "which is less than other consoles" will be completely ignored.


Mike from Morgantown

(There are only 25 2M WW sellers for the Xbox 360 and 11 for the PS3, compared to 20 2M WW sellers for the Wii -- and 47 1M WW sellers (Source: VGC)).



      


I am Mario.


I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble.

Wii Friend Code: 1624 6601 1126 1492

NNID: Mike_INTV

TWRoO said:
NJ5 said:
@TWRoO: I prefer this one:

http://www.globalresearch.ca/index.php?context=va&aid=12754

Nice.
And the neat thing is, that's only in American terms... although the American is generally used here now, in old UK terms 1 billion meant 1 million million rather than 1 thousand million, wheras 1 trillion means. 1 million million million. Which is "exa" or 1 X 10^18

So in American/British

1,000,000 (Mega)  =  1 million  =  1,000,000 (Mega)

1,000,000,000 (Giga)  =  1 billion  =  1,000,000,000,000 (Tera)

1,000,000,000,000 (Tera) = 1 trillion = 1,000,000,000,000,000,000 (Exa)

Well that's the long scale used in many non-english speaking countries.

http://en.wikipedia.org/wiki/Long_and_short_scales (I like wiki )



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Only trolls would believe this. NMH2,Korinpa(sp?) & the fact that any company makes games for the Wii proves this is a false statement.

There is no debate here. Neogaf have people making the same stupid arguments.

Or maybe some of you think Suda51 is stupid & wants to throw away more money since NMH didn't lose him enough.



Any reasonable person would know that either Reggie misspoke, or the reporter really messed things up.  Didn't stop Kotaku editor and Nintendo troll Luke Plunkett from being all over the story though!

So, How Many Copies Does A Wii Game Need To Sell To Make Money?

Nintendo are making money off the Wii. We know. But if you're not Nintendo, and you're planning on releasing a Wii game (or re-releasing a PS2 game), how many do you need to sell?

Nintendo of America's Reggie Fils-Aime has a fair idea. Speaking in broad terms, he reckons the average Wii game needs to sell a million copies to start turning a profit. Sounds easy, except...not many Wii games have sold a million copies.

In fact, of the 486 games currently on the system (according to the New York Times), only 16 have sold one million or more units (and that's according to the NPD Group). And of those 16, 9 are Nintendo titles.

Meaning only seven games published by a third party have sold a million or more units. That's...not many. Sure, Reggie was speaking in averages (so some games that have sold under a million may have cost little to develop, offsetting that), but still. Averages go the other way, too.

Goes to show, the Wii isn't the automatic money-printer you may think it is!

Oh. Unless you're Nintendo.

Video Game Makers Challenged by the Next Wave of Media [NY Times]

Source



Wow, the fallout from this is going to be echoing around the online journal blags for weeks and weeks.

Here's waiting for the correction.



Star Scream said:
Reggie speaks the truth.

 

If all of what Reggie was purported to have said is true, I cannot see why anyone would make games -- especially for the higher-threshold PS3 and Xbox 360.

 

Mike from Morgantown

 

And no, I think there is a misstatement/misinterpretation here somewhere.



      


I am Mario.


I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble.

Wii Friend Code: 1624 6601 1126 1492

NNID: Mike_INTV

Lostplanet22 said:
NJ5 said:
Lostplanet22 said:
After 1000's of comments like 'Wii games don't need to sell much to make a profit' the man from Nintendo say this. Must be a slap in the face for some.

Yes let's turn off our brains and make conclusions based on this quote being accurate...

 

 

I love the spin <3. It is only sad that you had to be so mean with saying I turned my brains off, I hope you can be more mature nex time :).

Anyway be assured I don't believe Reggie aswell especially after this:

 

Just go on with your happy crusade of saying PS3/X360 games need to sell a lot of copies to make a profit, if being an annoyance for the majority of the members on this site makes you feel good I am fine with it :).

 

Looking at the sale of those games featured -- Shaun White, Wii Music, Animal Crossing -- shows that Reggie might have been right. Rememebr, Wii Music has outsold LittleBigPlanet.

 

Mike from Morgantown



      


I am Mario.


I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble.

Wii Friend Code: 1624 6601 1126 1492

NNID: Mike_INTV