Brilliant Sean Mastrom's blog entry

[ItsaMii]

Squilliam said:

ItsaMii said:

Squilliam said:

Fine if you don't like my quick and dirty analysis how bout a more thourough database.

302 games in the database The number of games in the American database to prevent repeats. ( Conservative assumption because the games not included would have sold poorly anyway, the bias from this assumption further supports my point.)

142,000,000 games sold.

60 games comprise the top 20% (rounding down)

42 million sellers + 18 non million sellers. (94.6+14.8 = 109.4 million games sold comprise the top 20%)

The top 20% of games have therefore sold 77% of the total.

Therefore my assertion that 20% of games make 80% of revenue holds true.

Furthermore it is also well known that the top selling games hold their prices higher for longer and that most games sell in the first few weeks after the release (front loaded) These two factors further support my statement that 20% of games make 80% of the revenue.

Now consider that software development is a fixed cost once the game is released to the public with very little in terms of variable costs. So you see my assertion that 80% of profit goes to 20% of games is probably wrong, its closer to 90% actually. Since only about a 3rd of games actually break even.

This is typical of creative industries. Bookes/Movies/Games/Music all share the model where the lions share of actual profits go to very few endeavers. This would be an atypical model for other industries. This is not to say that profit cannot be found in smaller niches, what im saying is that most of the "total" profit goes to very few works.

The same would hold true of the software market on the Wii or PS3 or DS or PSP.

 

 

 

 

 

 

 

 

I give up dude. I hate being arrogant, I hate telling others that they are not worth my time. You are really testing my patience, so I will give just one advice: cool your head down, reread your posts and try checking your arguments at least 3 times before you post. So here it goes:

THE DATABASE IS FULL OF NON RELEASED GAMES AND DUPLICATES. that is why Bayonetta, Blue Dragon 2 and Halo wasrs got 0 sales on all territories.

It doesn't matter if its got duplicates. Theres always going to be an element of fudge when using Vgchartz numbers because there are flaws in the database. It also doesn't matter if its 20% of games making 70% of the revenue, my assertion that a few games make the majority of profit still stands.

 

 

It doesn`t matter if you are wrong or not. I am the stupid one for trying to argue you for so long. If you wanna do something that is at least slightly accurate, then:

1) go to gamefaqs and click on 360
2) start on A and go all the way to #
3) take out every downloadable or non released game
4) sometimes the same game has different names (japanese or european version)
5) games with faqs are always released (reviews or codes are not 100%)
6) check the data section if you are not sure

After all that you can try again and make some ridiculous clains about revenue and profits. 60 games out of 200 is not a big deal like 60 out of 300/400.

Also profits and revenues are not associated like you think. Namco made a pretty buck with Idol Master (around 100k units on retail) DLC. Even without DLC, the game could still be profitable considering low costs. The profits are nowhere near GTA 4, but if they made even 1 million in profits they were a lot more effective than Take2. And those 90 million Take2 made did not cancel their losses on their previous quarter.