Seneque on 25 November 2008
I think it has been posted and discussed already 2 or 3 times.
The study claims that only 20% of the games are profitable. But it doesn't say how much profitable.
When a game flop, it can only lose its development cost, while when a game succeed, it can get it back multiple times.
Imagine a company has 5 games that needs to sell 200k each to break even. 4 of them flop completely - 0 copy sold - whereas one is a frank success and sells 1 million. That makes a 20% success rate. And yet, the company itself does not post a lost ( 5 * 200k = 1 million).
