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Forums - Nintendo - High Voltage CEO mocks notion of selling less than a million is a flop.

LordTheNightKnight said:
Seece said:

"There are like ten games a year that sell over a million units."

LOL a bit more than that I think ...


He wasn't giving an official number. He was just discussing the rarity.


10 / 70, kinda wide off the mark. He makes it sound like 1/100



 

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darkknightkryta said:
Viper1 said:

Simple math formula can show you.   Game X has 100 people working on it.  The average salary of those 100 people is $75,000 (this was as of 2010) and they work on the game for 4 years.   100 x $75,000 = $7.5 million.  $7.5 million x 4 years = $30 million.

Now that is incredibly broad and doesn't even touch in minor factors that can increase or decrease this cost but it should give you a better idea how one game can cost so much more to develop than another game.  

I had actually forgotten God of War's dev time was longer and accounts for the extra mony, but as your math showed, there's no reason for God of War 3 to have cost more than 40 million with its 4 year dev time (I'm guessing that that 4 years).  Yet it's bloated to 55 million, and they were under budget.

My example was just that...an example.  Unless you know the total years of development and average number of people that worked on it annually, you can't make any assumptions.  And as I said, it doesn't take into account things like fees for major script doctors, engine license fees, music licenses, studio overhead costs, etc....  And finally, many production 'budgets' also include the marketing budget.  



The rEVOLution is not being televised

Doobie_wop said:

To be fair, I've seen you make accusations that HD games need to sell heaps of copies to survive, mainly because your under the assumption that they all cost $20 million dollars to develop. This trend needs to die as much the Wii flop trend, because they are both innacurate and yet they are continously repeated. 


Um, that's a counterargument, not a "to be fair" argument. That phrase means giving criticism, and then giving something positive or extenuating in response. That seems like nitpicking, but I just get annoyed at that phrase thrown all over the place when it doesn't fit.

And about the only games I remember explicityly claiming needing to sell loads were from developers themselves saying a game needed to sell a lot.

Though I have claimed there are some games that can sell a million and not make money, and perhaps I misunderstood how common it is, but that doesn't mean making loads of games cost that much is a good idea.



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

Seece said:
LordTheNightKnight said:
Seece said:

"There are like ten games a year that sell over a million units."

LOL a bit more than that I think ...


He wasn't giving an official number. He was just discussing the rarity.


10 / 70, kinda wide off the mark. He makes it sound like 1/100


We don't know the full context of the comment. He was discussing the Wii, for one thing, so he might have meant that number, or he might have meant all releases in a year.

Plus with the total game releases, even 70 million sellers a year can be less than 1% of the games made a year.



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

Who didn't know this, especially for Wii/DS/PSP games?




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"Calling such a believe "preposterous""


Way to work the spell check there Destructoid!!



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

When I talked to High Voltage at PAX I asked if he was dissapointed that Conduit got so close but  didn't reach 500k. He said that Conduit made more then enough profit and that it didn't need to sell a million copies to be successful. He talked awhile about how even if Conduit 2 sold fewer copies then Conduit did it would probably still turn them a healthy profit.

Besides look at High Voltages past liscensed titles, they didn't do much better then Conduit. I think to see their own creation selling almost as well if not better then their liscensed titles is really worth the effort.



-JC7

"In God We Trust - In Games We Play " - Joel Reimer

 

The arbitrary "1 million sales" figure has mostly been promoted by people when they were trying to argue that a game for a HD console that sold a million copies but bankrupted the developer was successful while a game for the Wii that only sold 500,000 copies but received a sequel and was the most successful game for that developer ever was a failure.

Many publishers and developers (EA for example) effectively claimed that HD console games cost 2 to 4 times as much to develop as similar Wii games; and by similar they don't necessarily mean just that the genre is similar, but the scope and size of the project is similar as well. For many moderately big budget games on the HD consoles 1 Million sales (across all platforms including the PC) would only represent a small fraction of their development costs, and for many moderately small budget games on the Wii 1 million sales would represent several times their development costs.



Viper1 said:
LordTheNightKnight said:
Viper1 said:

Good to hear Eric state what most of us already knew to be true.


This also relates to the lack of budget disclosure. Movie budgets are usually public, so it's easy to see such things. Video game companies seem to want to make games like movies, save for being more public about how games are made and for how much.

The movie industry is so much more mature as a business.  The video game industry may one day get their but it's not looking like it wants to move in that direction any time soon.

 

darkknightkryta said:

I'm still a bit curious on how a game can cost more than 20 million to make.  I mean Uncharted 2 (Atleast the first game anyways) had a 20 million dollar budget.  Yet God of War 3 had a 55 million dollar budget.  What did they do in God of War that cost them 30 million more? (Note God of War games have always had 50 million plus budgets.)


Simple math formula can show you.   Game X has 100 people working on it.  The average salary of those 100 people is $75,000 (this was as of 2010) and they work on the game for 4 years.   100 x $75,000 = $7.5 million.  $7.5 million x 4 years = $30 million.

Now that is incredibly broad and doesn't even touch in minor factors that can increase or decrease this cost but it should give you a better idea how one game can cost so much more to develop than another game.  


Unfortunately, your math is quite a bit off.  Average cost per employee wouldn't be anywhere near $75,000.  Even if the average salary is that, which seems awfully low for average salary, the fully loaded cost per employee is going be at least double that, so $150,000 per employee, which doubles your $30 MM.



I don't agree with this one bit. I think that games should be judged unto their own performance, and not relative to one another.

(I think I've got the topic for my next thread )



 

Here lies the dearly departed Nintendomination Thread.