Bodhesatva said: takeru51 said: I thought I read (from Reggie Fils-Aime, so it could be biased) that it was somewhere in the range of 500,000-1,000,000 sales required to break even on the bigger titles. |
This would be for an exclusive title. I'm talking about games on 360/PS3, and whether simply making these games de facto 360 exclusives would be a good choice. My analysis says: no. And as others have pointed out, Europe is a whole different bag of cards. Absolutely, that should be factored in, and furthers cements the PS3 as a legitimate multi-platform option. |
Most studios agree that multiplatform is a good policy for making money. It's an official EA policy, I believe, to put their games on as many platforms as make financial sense. They have many other policies that don't necessarily lend themselves to high quality games, such as releasing many of their franchises every single year or every other year regardless of whether they're ready. Look at the NFS franchise: they're racing games that have significant framerate problems. I hate that, but it's good enough for the average gamer.
There is, however, a more significant problem in the gaming industry right now. A lot of decent-selling games aren't making a profit, and not enough games sell well. EA believes that consumers have rejected the $60 price point and that something needs to be done. Developers have been complaining about the PS3's poor sales, and other devs have suggested that both MS and Sony need to release $199 machines.
The availability of a $199 machine, the devs hope, will increase their sales by increasing the installed base. The problem is that more of the people purchasing a system for $199 are likely to buy bargain games, or buy fewer full priced games. They're less likely to use the system as much overall -- a more expensive system will preclude the less hardcore spenders. It would preclude most of the people who'd like to have a game system to play with sometimes.
The problems are game cost and game price. The games cost too much to develop, and they're priced too high for normal consumers to purchase as many as the industry would like to sell. This is definitely something that needs to be resolved. I think the first step will be for MS, Sony and Nintendo to take smaller royalties. This is especially important for Sony and Microsoft, who have very high priced games and larger royalties. It will make generating a profit harder for them, but they need to meet the publishers half way.