Slimebeast on 29 May 2008
| Fuzzmosis said: Also Slimebeast, are you honestly saying that when people make 0 return on investment, they secure a future investment for the same ROI? That would fall under the realm of fiscal irresponsibility towards their investors and if it were a known practice would piss of the chart reading stock holders. We're greedy like that. When your ROI on a 2 year project is higher in a .05% annual interest rate bank account and all. |
If you mean the C&C3-example, yes. Note that I set the budget to $15 mill for the sequel versus the $20 mill revenue, implying that EA thereby seeks a profit margin on the next game.
It's pretty safe to say that in the case of games, even if the profit was zero, the chances/potential for a sequel is very very high (of course with the economical parameters tweaked in hope to reap some profits from the sequel instead). Especially when the publisher is tightly linked to the developer. There are many arguments that support this claim.
