HappySqurriel on 02 June 2008
| Machina-AX said: Wonder what game projects were axed. |
As a guess I would suspect that the games were incomplete, and the ammount of money they had already put into development was greater than the revenues they could expect if the games were completed ...
Basically, imagine a HD game (as an example) where you have put $20 Million into development so far and it will take $10 to $20 Million more to complete the game; the game can realistically expect sales of 250,000 to 750,000 units and you only receive $15 per copy sold. The best case for this game is that you will only lose about as much money as you have already invested into this game, the worst case is that you will lose dramatically more; at this point it makes sense to cancel the project.
