Jereel Hunter said:
Bear in mind one thing - even if a game has 35-40% of it's sales on the PS3, doesn't nessecarily mean it was worth porting. Why you say? Lets use some basic numbers Lets say a game costs $20m to develop., and sells 1m copies (600k on 360, 400k on PS3) If it was to release on 360 alone, it would not sell 600k, it would likely pick up half of the PS3's sales, since a large number of gamers have both systems but will buy multiplats for their PS3. so 1m copies split, or 800k on just the 360 is how the dev may look at things. Now, that $20m budget shrinks to $17 or $18m developing for just one platform, and simultaneously allows them to create a more polished game on that smaller budget, since it can be focused on one system. Also, factor in that MS charges less licensing fees for their games, which means those extra 200k sales are at a higher profit margin than 200k sales on a PS3. in short, in a scenario like this, you get: Multiplat - $20 dev budget - $50m sales - (Dev takes say... 40% of that all told after publishing and licensing fees) - dev about breaks even 360 Exclusive - $17-18m budget - $40m - (Dev takes about 43% all told after publishing and licensing fees) = 17.2m - dev about breaks even - not including any incentives for making the game exclusive But the issue is more than that. Not only can the numbers be similar, but there's less overhead. a company can maintain smaller development teams which means less money lost on flops/cancelled projects. It reduces overall administrative costs, which for a company the size of activision can really add up. Note: none of these numbers are real, just an example of how multiplats(I don't know the exact figures) are not nessecarily more profitable, just because they sell more copies. |
I think in assuming that if there was no PS3 version of say Prototype the 360 sales would rise by 50% of the potential PS3 sales you're being a tad over optimistic. I suspect that 360/PS3 owners are in the minority for one thing, and I suspect that 360/PS3 owners tend to buy multiplats on 360 unless there is some specific reason not to.
As a result I would really only anticipate a much more modest, perhaps 5% to 10% bump to 360 sales max.
I agree that in the right circumstances developing for one console is more cost effective, but two things I see many people forgetting are:
1) brand positioning. Activision, EA, etc. are seen as multiplatform companies for the most part, and I think it would be a major sea change to shift that now.
2) profits are very important but if you want to be a large company you need revenue too. And focusing on profits while reducing revenue (as dropping PS3 platform would certainly do) would result in Activision potentially being slightly more profitable but effectively smaller as a company.
I think this route really only favours smaller, focused developers such as Bungie, Insomniac, Epic, Sucker Punch, etc. I could only see Activision pulling the plug if PS3 truly died and fell way behind as a platform, and I don't think that's going to happen. The next 12 months - June 2009 to June 2010 - are likely to see far too many high profile titles on PS3, both exclusive and otherwise (one of the biggest ironically supplied by Activision themselves) for this to happen.
EDIT: the only link I could find with a search is the following regarding multiple console ownership:
http://www.gamasutra.com/php-bin/news_index.php?story=18107
However, it does strongly imply that probably only a fraction, perhaps as low as sub 1%, of gamers have both consoles (they assume only around 3% with more than 1 and I suspect there are more 360/Wii & PS3/Wii combinations than PS3/360 combinations out there). So as I say I think your approach is fine but the percentage of additional sales you're applying is probably off a bit.
Try to be reasonable... its easier than you think...