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FishyJoe said:
Bodhesatva said:

That's a strawman, Kasz. I never said they sold exclusively on graphics/tech; even in the case of Epic, I said they "partly or largely" sell on graphics/tech. This isn't black and white. We all have our priorities. Some people, like me, place very little emphasis on graphics and much more on gameplay; others place some emphasis on gameplay, some on I/O, and some on graphics; some put a large emphasis on graphics or "immersion," and less emphasis on gameplay and I/O.

I largely agree with Sullla, by the way. I think there are missed opportunities on the Wii; I just think the situation a lot less obvious than "put all your AAA games on the Wii and you will see the sales!"

One other thing to consider is that a game that costs 20 million to produce on the 360 and sells 5 million copies makes more money than a game that costs 10 million to produce on the Wii and sells 5 million copies. Therefore, the AAA games that sell 5-10 million (like Gears or CoD4) are particularly profitable on the PS3/360. This is one of the things discouraging blockbuster development on the Wii.

 


Huh? How is this possible?

 


 Because more money is made per game sold.

Each 360 game costs 60 dollars. Of the 10 additional dollars per game, about 4-5 of it goes to publishers (2-3 goes to MS/Sony, as their royalty fees are higher. Another 2-3 goes to retailers, who get a larger share of the profits).

So if publishers are making 4-5 dollars more per game, that's an additional 4-5 million dollars per 1 million copies sold. The more a game sells, the more additional revenue is accrued from the increased cost of each copy. At 5 million copies, you're at 20-25 million additional revenue; at CoD4-level sales of 10 million, you're at 40-50 million additional revenue that simply would not exist if it were a Wii game.

In short, a game that sells 10 million copies would need to cost ~40 million less to develop to make more money on the Wii; that's a conservative estimate.  As such, it's reasonable to assume that the giant, AAA games like CoD, Assassin's Creed, Gears of War and Halo make more money on the PS3/360 than they do on the Wii.



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