Sega talks about their actual state. Core games at risk

[Rpruett]

Kasz216 said:

Rpruett said:
It's a new generation with bigger risks, bigger rewards. Some companies and developers are going to bite the bullet. Some won't be able to stand the test of time.

Some will pass with flying colors. I'm sorry but Sega hasn't made that many wonderful games (Recently) as far as I'm concerned.


Some companies are going to go out of business but to act like the whole industry needs to downscale and de-grade in graphics is absolutely hysterical and stupid. Only the developers who cannot develop quality HD caliber games need to downscale.


Plenty of other studios are doing just fine. (Rockstar, Blizzard, Valve, Guerilla, Naughty Dog, Bungie, Insomniac, Epic, to name a few).



The jump into HD is/was/has been expensive no doubt about it. This is true for Cable TV, Movie Production, Etc. Although it's moving forward not backwards. The further this progresses the cheaper everything involved with it, becomes.

The bigger rewards don't match up with the bigger risks however.

Hence record revenue...

yet almost nobody making a profit.

 

This is definitely because of the high cost of HD development.  A cost which as time presses onward will continue to decrease.  This is a transitionary period for video games. The upgrade to HD is not cheap but given some time it will definitely get cheaper. 

For companies that cannot produce quality HD games,  they will either go out of business, get gobbled up by other larger developers who can sustain or will have to produce cheaper games.  (PSN/XBL or Wii games potentially).

Downloadable games will gain popularity.  Games like Flower, Flow, Pixel Junk Monsters/Eden,  Castle Crashers, Braid, etc.  These games are cheap to create and easy to reclaim profit on. 

 

This is how the market will grow.  More casual games / downloadable games / additional content  which will sustain the HD development of larger games.  Until HD costs drop (And they will).