| Final-Fan said: 1. But ... if you were initially speculating, where the hell did you get those extremely specific numbers? 2. So, yes. OK, it's not a bad thing. 3. I don't understand this. Do you mean you subtracted FIRST (instead of third) party stuff from the total market size? If not, I'm afraid I do not understand your methodology or its rationale at all. 4. That's true, but it still seems wrong to make definite claims about relative profit without at least attempting to compensate for that aspect of things. In particular, when you just DID attempt to factor into your findings claims that doing production, warehousing, distribution etc. over a shorter period of time instead of prolonged as with "legged" games results in massive savings, it strikes me as frankly dishonest to completely IGNORE savings that go the other way, just because it's impossible to know with certainty the degree of difference it makes. |
1/2. From memory, but I was mistaken / I cannot find where I saw it. I saw a recent VGC article quoting pachter about the average sale price on the titles and that price was higher than what I remember but its more concrete.
3. I subtracted hardware bundles where 3rd parties couldn't be competitive. So Wii Sports / Wii Sports resort and WIi play are unique bundles and not counted, however Wii Fit is inclusive given the fact that Wii Fit competitors have been reasonably successful. This leaves the Wii ahead slightly but on the balance of downloadable games I figure that it would even out roughly. This isn't accurate as the total software sold/would have been sold, its my trying to look at how the third party publishers might read the market.
4.Its simply easier to deal with the variable costs than the fixed costs. Things like packaging, royalties, distribution, retailer margins etc are very well defined costs. You can easily get a source for those. However fixed costs are not easy to quantify and a lot of it depends on interpretation. Does a Wii game also have to pay for the 5 cancelled projects the production house has on hold because they rushed to follow trends and always fell behind the 8-ball for instance?
Its not that I want to deliberately ignore the production cost side of things. I just cannot think of how to include such a complicated aspect in what ought to be a rather shallow analysis of the market. I would like to be able to. We don't really have a good understanding as to what is really going on behind the scenes in places like Take 2 where they registered a loss even when they released one of the biggest games of the generation.
Tease.











