| ph4nt said: I see too many people use this argument. Yes Wii games are 1/3 the cost of HD games supposedly, but that doesn't mean 1 million Wii sales = 3 million HD sales. The difference only applies to the breakeven amount. A company needs to sell 1/3 the units to break even, but after that it's all profit.
Say A game costs' 100,000 to make on Wii, 300,000 on HD consoles For simplicity 1 unit = 1$ If the wii unit sells 1 million and the HD sells 3 million.
Total profit for wii = 900,000, HD = 2,700,000. See the difference? |
I see a difference, but not in profit. The return on investment is the same 1000% on both products, one is simply riskier than the other, and therefore will either net you more if your number comes up or cost you more if it doesn't.
Invest $300,000 in three Wii games and diversify your product line to further mitigate risk, so a pricey bomb won't sink your company like Factor 5 or Free Radical. If they all pay off, you made just as much money as the HD game. If two bomb, you still made money instead of going extinct.
Of course, if you're big enough, you can diversify across multiple HD and Wii titles. Nice, if you have the capital.
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