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Forums - Sony - Why Isn't Sony Taking Advantage of Being In The Lead?

VanceIX on 15 June 2014
KingdomHeartsFan said:
VanceIX said:
KingdomHeartsFan said:
VanceIX said:
Bigger publishers like SE, EA, and Activision no longer care about catering exclusively to Sony.

In previous gens, since the hardware was so different, it made sense for publishers to develop exclusively for the PS2, especially since it had such an insane lead.

Now, a game can easily be ported to the Xbox One or vice-versa due to near identical architecture, so you're losing massive money by keeping a game exclusive.

I realise they no longer care, which is why Sony has to be the ones that go to them and offer the deal.  They wouldn't be losing money since Sony would be paying for the lost sales they would have had on the X1.

Let's assume FFXV would sell 2 million on Xbox, which by itself is probably going to end up being a conservative guess. Let's also assume that the game is 59.99.

That's 120,000,000 that SE would be losing by not putting it on the Xbox One. That's 120,000,000 that SE won't have made to help make their next title.

SE already does enough by making titles like KH 2.5 remix exclusive for Sony. They don't need to hemorrhage money to stay in Sony's favor. It's bad for the company and gamers. 

SE doesn't make $60 off each game sold, I remember a thread a while ago making a chart of how much of the $60 the developers actually get, it was around $7.

They need to recoup losses for development, so their overall profit is lower (but still not $7). In that case, it's even worse staying exclusive. $120,000,000 would go a mile towards cover advertising costs for the game and overall development costs. $120,000,000 in revenue > $3,000,000 in revenue. 



                                                                                                               You're Gonna Carry That Weight.

Xbox One - PS4 - Wii U - PC

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Never on 15 June 2014

Desperate measures are best suited to consoles that aren't doing well.



MoHasanie on 15 June 2014

They can't afford to buy anything. Have you not seen how bad Sony is doing right now?



    

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vivster on 15 June 2014

They should be able to score something with Platinum or Insomniac, the current biggest whores of the gaming industry. They'll do anything for the highest bidder.



If you demand respect or gratitude for your volunteer work, you're doing volunteering wrong.

Lawlight on 15 June 2014

The publisher gets $45 out of the $60. Sony needs at least $100M to get FFXV to be exclusive. No console manufacturer will pay that kind of money for 1 game.



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VanceIX on 15 June 2014
flint said:
VanceIX said:
KingdomHeartsFan said:
VanceIX said:
Bigger publishers like SE, EA, and Activision no longer care about catering exclusively to Sony.

In previous gens, since the hardware was so different, it made sense for publishers to develop exclusively for the PS2, especially since it had such an insane lead.

Now, a game can easily be ported to the Xbox One or vice-versa due to near identical architecture, so you're losing massive money by keeping a game exclusive.

I realise they no longer care, which is why Sony has to be the ones that go to them and offer the deal.  They wouldn't be losing money since Sony would be paying for the lost sales they would have had on the X1.

Let's assume FFXV would sell 2 million on Xbox, which by itself is probably going to end up being a conservative guess. Let's also assume that the game is 59.99.

That's $120,000,000 that SE would be losing by not putting it on the Xbox One. That's $120,000,000 that SE won't have made to help make their next title.

SE already does enough by making titles like KH 2.5 remix exclusive for Sony. They don't need to hemorrhage money to stay in Sony's favor. It's bad for the company and gamers. 

Unless Sony has a spare $120,00,000 lying aroung (they don't), they would be wise to let SE do its own thing.

That is far more money than they would get from 2 million in sales you are taking zero other factors into account as, for a hard copy, the store, microsoft, production, and so on all taking their cut from the $60 on the store shelf. They would simply do whatever made the most money, with the current gen the difficulty yo port over is far lower so the money offered needs to be higher and higher as both install bases grow but it is knowhere near this high.

Edit: That's right person above somewher $7 dollar, so that's $14 will a few mill taken off to port it over and a nice friend discount, a cool $10 mill seems like a safe deal to make

"Friend discout"? What's that? Sony and SE aren't friends. They're corporations.

And in the digital era, where 30% of your sales can be digital, SE will be seeing a lot more than just $14 million in profit from FFXV on the Xbox One. 

SE made over $76 million in profit in 2012 over FFXIII-2 and Deus Ex. Around 40-50% of those were from FFXIII-2 alone, and it sold a lot less than FFXIII (and Final Fantasy XV will almost certainly sell much more).

That's around $20-30 million from just 1.5 million games sold. 



                                                                                                               You're Gonna Carry That Weight.

Xbox One - PS4 - Wii U - PC

pokoko on 15 June 2014
KingdomHeartsFan said:

SE doesn't make $60 off each game sold, I remember a thread a while ago making a chart of how much of the $60 the developers actually get, it was around $7.

As publisher, they'll get closer to $30 in return.

Really, it simply isn't worth the price.  Better they spend money on projects where they own the IP.



KingdomHeartsFan on 15 June 2014
pokoko said:
KingdomHeartsFan said:

SE doesn't make $60 off each game sold, I remember a thread a while ago making a chart of how much of the $60 the developers actually get, it was around $7.

As publisher, they'll get closer to $30 in return.

Really, it simply isn't worth the price.  Better they spend money on projects where they own the IP.

Ah didn't think of that.



gergroy on 15 June 2014

You do realize that even though sony is in the lead, out of the three console makers sony, by far, has the least amount of money to throw around at publishers.



flint on 15 June 2014
VanceIX said:
flint said:
VanceIX said:
KingdomHeartsFan said:
VanceIX said:
Bigger publishers like SE, EA, and Activision no longer care about catering exclusively to Sony.

In previous gens, since the hardware was so different, it made sense for publishers to develop exclusively for the PS2, especially since it had such an insane lead.

Now, a game can easily be ported to the Xbox One or vice-versa due to near identical architecture, so you're losing massive money by keeping a game exclusive.

I realise they no longer care, which is why Sony has to be the ones that go to them and offer the deal.  They wouldn't be losing money since Sony would be paying for the lost sales they would have had on the X1.

Let's assume FFXV would sell 2 million on Xbox, which by itself is probably going to end up being a conservative guess. Let's also assume that the game is 59.99.

That's $120,000,000 that SE would be losing by not putting it on the Xbox One. That's $120,000,000 that SE won't have made to help make their next title.

SE already does enough by making titles like KH 2.5 remix exclusive for Sony. They don't need to hemorrhage money to stay in Sony's favor. It's bad for the company and gamers. 

Unless Sony has a spare $120,00,000 lying aroung (they don't), they would be wise to let SE do its own thing.

That is far more money than they would get from 2 million in sales you are taking zero other factors into account as, for a hard copy, the store, microsoft, production, and so on all taking their cut from the $60 on the store shelf. They would simply do whatever made the most money, with the current gen the difficulty yo port over is far lower so the money offered needs to be higher and higher as both install bases grow but it is knowhere near this high.

Edit: That's right person above somewher $7 dollar, so that's $14 will a few mill taken off to port it over and a nice friend discount, a cool $10 mill seems like a safe deal to make

"Friend discout"? What's that? Sony and SE aren't friends. They're corporations.

And in the digital era, where 30% of your sales can be digital, SE will be seeing a lot more than just $14 million in profit from FFXV on the Xbox One. 

SE made over $76 million in profit in 2012 over FFXIII-2 and Deus Ex. Around 40-50% of those were from FFXIII-2 alone, and it sold a lot less than FFXIII (and Final Fantasy XV will almost certainly sell much more).

That's around $20-30 million from just 1.5 million games sold. 

They seem pretty friendly as they help each out when needed, like recently with a share sale returning the old favour. Japanese companies are just slightly different.

If we go with your figures which I guess would account for a higher fraction for digital sales that's still a lot less than $120 mill, i'll go as high as $15 - $20 mill as the value of an exlusive to both those companies, no higher.



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