| naznatips said: Squilliam your points are all valid, but you are completely ignoring hugely negative quarterly profit reports for 3rd parties and higher developments costs (which of course cause the former). So yeah, it's great that the games average 850k, but when you are STILL in the red, there are some major problems... |
For the 850k figure, much of the profit for those releases won't be seen until the financial reports for this year. This is a marked improvement over the results from Q1 the previous year.
I don't think development costs are the whole story here. To complete the picture you have to take into account Marketing/Testing/Publishing costs. Its been stated previously that the Wii required as much if not more advertising as the HD consoles by an Ubisoft executive due to the "More fragmented userbase"
Theres a reason why people are saying that the "Wii 3rd party games would have sold more had they been advertised more" Its because the marketing costs are hellishly expensive especially when you consider the cost to develop on it. If an HD game costs $15M do develop 5M to test/publish and $10M to market and that brings us to our typical given $30M figure. If a Wii game costs $6M to develop $4M to test/publish and another $10M to market the cost is actually quite similar @ $20M given the similar marketing effort. This is likely why a lot of Wii games don't recieve a significant marketing push, though the same can be said of many of the HD console games.
Tease.
