SaviorX said:
"Namco Bandai Holdings President Takeo Takasu said rising development costs for next-generation games mean companies need to sell at least 500,000 copies in order to make a profit. Mr. Takasu said graphics for PS3 games can cost nearly $9 million to create — more than double the price tag for Wii titles."
"It was estimated in 2005 that only 80 games a year make a profit. Development costs in the next generation are set to rise from $3 -$6 million per title to $6-$10 million, with some cases surpassing $20 million. Licensed games, such as Madden NFL or James Bond titles, generate about 23% more revenue than original content."
"Game development on the seventh generation consoles typically requires a budget of around $10 million or more and according to IDC analyst Billy Pidgeon. "You might be able to weather one title coming in at 500,000 in sales," he said. "But two or three failures like that and even big publishers are going to be hurting." David Jones, who's worked on some of the industry's iconic titles such as Grand Theft Auto and Crackdown said he'd struggle to make an online game with a budget less than $20 million."
"Ubisoft boss Yves Guillemot has predicted game budgets will rise to an average of USD 60 million in the future. Games for Xbox 360 and PS3 cost between USD 20 million and USD 30 million to make. Leading on from this, an Ubisoft executive gave a breakdown of the company's average development costs per game - with a DS title costing between 500,000 to 1,000,000 euros ($785,000-$1.57m), PS3/Xbox 360/PC titles averaging 12 million to 18 million euros ($18.8m-$28.2m) to create for all 3 SKUs, and a Wii game expected to cost 5 million to 6 million euros ($7.8-$9m) to develop."
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