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I completely agree with the op. Back then a lot of games have just as large budgets as games do now. Not Uncharted budget, but large budgets. Most games were also exclusive to the PS2, so they didn't sell between multiple consoles. There were also far more rental locations around back then. Now, most of Blockbuster is closed down as well as several other locations before this generation launched, such as Hollywood video, Movie Gallery, etc. In addition to all that, this gen not only gains money off the first sale, but also DLC, and a lot of sales come from digital, which has no resale and larger profits going towards the publisher.

It's nothing more than mismanagement of money between the publishers. It's always the same larger publishers that bitch and complain that the sales they're making are never enough.

Square Enix is one such developer. We know how bad this company is mismanaged. Games that one company might put out in a few years take an entire generation for this developer. They release sequels to the same game and reuse assets, $60+ worth of DLC, yet they're still losing money on it? Really? You're selling in the millions for other games like Hitman Absolution, Sleeping Dogs, and Tomb Raider, again a lot of DLC for each game, yet all of these games have lost money to the point you're almost bankrupt. What the hell is going on with that company? Stop estimating that every game is going to sell five million per console and maybe your company will make some fucking money.  Ever since this generation Square Enix has been making some stupid decisions across the board.