On The Verge of A Gaming Crash? Without Nintendo....

[Shanobi]

De85 said:

Shanobi said:
What part of this do you not understand?

"Analysts predict that some other publishers will need to clear 1 million units to get in the black--and start making about $1 per game sold."

Also, Google. Seriously. I gave you the companies, how hard is it?

 

Publishers =/= developers.  The question being discussed was how much the developers make, you know, the people who do the programming and designing.  According to your own article they get 45%

 

As for your Reuter's article, I have a few things to say. Quoted below.

Guillemot said the company's casual games business was "extremely profitable" and helped to finance the initially costly development of games for next-generation consoles -- Sony's (6758.T) PlayStation3 and Microsoft's (MSFT.O) Xbox 360.

Good find on that, I was previously unaware of any dev who had actually said that.  Note though that while he said that this occurred in the past (most likely before they brought any HD games to market, but after their last gen games stopped selling), there is no indication that casual funding of HD projects is the status quo at Ubisoft, or anywhere else. Hd development costs have come down in the past two years, and nobody can rationally argue that game like Assassin's Creed and Rainbow Six: Vegas haven't made loads of money for them.

 

 

 

Oh sure, you can even see in their financial statements that Rainbow Six and Assasin's Creed brought in nice profits for them. 

 

I think the problem is, that for every 1 HD game that makes a profit, you're looking at around 8-9 games that lose money. It's no secret that Rockstar, for example, has lost money on nearly every game that hasn't bore the "GTA" title.

 

There was an article posted on here recently that discussed how, I believe it was, only 1 in every 10 "next gen" games make a profit. Heck, just look at the charts here. Look at the high profile games on 360/PS3 that have stellar sales. Now as yourself, where are the other games? 

'Cause there have been a LOT of games released, and most of them fell right off the map. Outside of the largely hyped games, you have the rest. And they've lost tons of money. Companies have to hope that the hype games can bring in enough money to offset the losses of the other titles that aren't making it.

We all agree that the industry is imploding right now, right? I mean, we can see studios folding, developers merging, publishers closing studios, dropping I.P.'s.

Thing clearly aren't going well for the business end of the industry, and I think we can all agree on that.