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JEMC said:

With a smaller market, what will happen is that either publishers invest less in the games, opting for either less games but as big as they are now (AAAs) or as many games but with smaller budgets (so worse graphics and/or smaller worlds, maybe even shorter). Whatever the choice they make, we lose.

You're just imagining the worst cases.

Lets say, for sake of example, we went from 260mill last gen to 200 mill this gen with PS4 80-100, XB1 50-70, and Wii U 30-50.

Last Gen: 260 million

PosGamePlatformYearGenrePublisherNorth AmericaEuropeJapanRest of WorldGlobal
1 Call of Duty: Modern Warfare 3 X360 2011 Shooter Activision 8.73 4.12 0.13 1.28 14.25
4 Call of Duty: Modern Warfare 3 PS3 2011 Shooter Activision 5.38 5.52 0.49 1.49 12.88
25 Call of Duty: Modern Warfare 3 PC 2011 Shooter Activision 0.38 0.93 0.00 0.32 1.63
39 Call of Duty: Modern Warfare 3 Wii 2011 Shooter Activision 0.48 0.18 0.00 0.07 0.73

 (despite most marketshare)

29.49 million LTD an attach rate of about 11%

On a smaller market of 200, COD has less consumers to tailer for and can make the game itself better.

For a market of 200 million, all it would need was a 22% attach rate to meet the sales of a market 30% bigger than it.



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