Western Publishers are struggling

[vlad321]

outlawauron said:

BengaBenga said:
While we are in a recession, the game industry is experiencing enotmous growth. I think YoY the total revenue is up 20%.

The HD development model is clearly unsustainable. If an average game will only break even at 1 million copies (let alone see a significant ROI) there's something terribly wrong with the industry.

Sure the Assassins Creeds, Gears and GTA's will earn a nice sum of money, but even something like Prince of Persia looks like it's going to make a loss. Despite it will likely end up selling a million.

Most Japanese devs have focused on DS, are increasing their Wii development and are having less HD games. For some reason Western devs are unwilling or unable to shift their focus to Nintendo's consoles.

I think you grossly overestimate the cost of HD games.

 

I don't see how some can be selling so many games yet still have such low profits. Where is all the money going then?