| Viper1 said: Overhead, production, taxes, etc....are the same costs regardless of the consoles your studio supports. Minimizing the learning curve factor appears to be one of the goals of the console. Utilizing standards well established on the PC and current HD consoles ensures developers will ease into development rather quickly. Also the fact that a lot of the growing pains of the early days of the HD consoles has passed. Hardware upgrade costs, establishing a larger art department, and other one time costs to enable HD development have already been undertaken so the existence of another HD capable console won't have the same initial financial impact as 2005/2006 did. Mulitconsole ownership is at best 15% of the market. You apply the 15% to your projected individual console sales milestones to get your cannibalized sales data. But you have more to fear from other console titles of the same genre than you do from multiconsole ownership. |
Im no accountant but from my understanding of internal accounting, overhead simply means costs that cannot be directly trace to a product/product line. Companies do however assign these overheads to product/product lines using some methods like ABC for the purpose of measuring consumption patterns which in turns influence decisions such as whether to invest in a new product. Rent will be the same for all products but other overheads like electricity, admin, sales, & market costs will certainly increase if a café version is developed and you can attribute these additional overhead costs to a specific product line as I have explained above. So again, we don’t know these costs and therefore you cannot pass on your calculation using random figures as fact to support your opinion. 10,000 sales only to break even, cummon you got to be more realistic than that.
You do however have a point with regards to the established HD development methods, processes, infrastructure. Well will see next year wont we.
Can you provide me with a source with that 15% figure.
