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VGuserXX said:

Individual titles do best when targetted at a specific demographic -- which is the crux of the problem with the Wii.  Who cares that a Wii game costs $5 million to develop, compared to a HD cost of $20 million, when the $20 million investment nets you 9 million unit sales on the two HD titles, and the $5 million nets 1.5 million unit sales on the Wii title, and at a lesser revenue per unit, to boot?  Each dollar spent on the HD consoles, in this example, nets 1.5x as much revenue (actually more like 2.0x, because the of the revenue per unit difference).

"Every dollar spent on successful, demographically targetted games performs better.  Plain and simple."

"EDIT: By the way, the shovelware titles bring the Wii development average way down.  The cost of making games, like the ones Reggie wants, is probably closer to half what the HD version costs."

Even if that's true than games that sell close to the amount of Xbox360 titles are not profitable as the 13$ to make games goes to 26$ and Xbox360 games cost only 10$ more to buy. Moreover no thrid parties on the Xbox 360 or PS3 have sold 9 million copies. Only sequels to established franchises are selling on those systems. Exactly the types of games Nintendo wants on Wii systems. In fact Mario and Sonic at the Olympic games has more sales than All 360 games but 3. Guitar Hero sells more copies on the Wii than on HD systems. A lot of the hard core titles that sell alot are made by Activision selling Call of Duty reshashes and Microsoft with Halo and Gears of War.

 

http://vgchartz.com/worldtotals.php?name=&console=Wii&publisher=&genre=&minSales=0&results=50&sort=Total

http://vgchartz.com/worldtotals.php?name=&console=X360&publisher=&genre=&minSales=0&results=50&sort=Total

VGuserXX, it took me a sec to realize you were quoting me (the italics), because you cut-and-pasted, rather than used the quote mechanism. =)

In any case, I think you misread my post.  HD development is the cost to develop on BOTH HD platforms, not just one.  $20 million makes both a PS3 AND a 360 version of a game, because those two platforms are so similar.  Thus, "Wii" is one platform, from the 3rd party perspective, and "HD" (meaning both the others) is the "other" platform.  You have to COMBINE the PS3 and 360 SKU sales of a game to get the relative development cost to revenue.