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Forums - Gaming Discussion - Phil Spencer: Sony buying third party games, all to do with money, not market share

Azzanation said:

Marketshare means little because machines like the Gamecube had plently of 3rd party support and that was agasint the PS2 which in terms of sales was on another level. Why would devs make games for the Gamecube if the marketshare is such a big factor in your eyes? Because of deals, all companies do it, just like Sony, and Microsoft. You want something, you have to pay for it.


...Are you really trying to compare ps2 with gamecube, for tiers ?



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Namiirei said:
Azzanation said:

Marketshare means little because machines like the Gamecube had plently of 3rd party support and that was agasint the PS2 which in terms of sales was on another level. Why would devs make games for the Gamecube if the marketshare is such a big factor in your eyes? Because of deals, all companies do it, just like Sony, and Microsoft. You want something, you have to pay for it.


...Are you really trying to compare ps2 with gamecube, for tiers ?

Yeah, PS2 can't compete with GC.



Samus Aran said:

Yeah, PS2 can't compete with GC.

You mean it's the GC that can't compete with the PS2 ... 

Afterall it got obliterated when it came to consumer support ...



fatslob-:O said:
Samus Aran said:

Yeah, PS2 can't compete with GC.

You mean it's the GC that can't compete with the PS2 ... 

Afterall it got obliterated when it came to consumer support ...

Doesn't matter, the Bible is the most read piece of literature in the world yet it's poorly written. People have poor tastes!

I'll take the Illiad and Odyssee over the Bible, just like I take my GC over the PS2. 4 player local multiplayer beats all! PS2 can't even do that without an add-on. The joys of playing Mario Kart: Double Dash and Super Smash Bros. Melee with friends and family really is unmatched by anything else from that generation. GC was also more powerful and a lot cheaper where I lived! Battlefront was great as well though, with a friend (together with the DBZ games the only fun multiplayer experience I had with the PS2).

(PS2 still beats the Bible though)



Samus Aran said:

Doesn't matter, the Bible is the most read piece of literature in the world yet it's poorly written. People have poor tastes!

I'll take the Illiad and Odyssee over the Bible, just like I take my GC over the PS2. 4 player local multiplayer beats all! PS2 can't even do that without an add-on. The joys of playing Mario Kart: Double Dash and Super Smash Bros. Melee with friends and family really is unmatched by anything else from that generation. GC was also more powerful and a lot cheaper where I lived! Battlefront was great as well though, with a friend (together with the DBZ games the only fun multiplayer experience I had with the PS2).

(PS2 still beats the Bible though)

Shakespeare has sold the most works as an author so I guess people really do have poor tastes ... /sarcasm 

"I'll take the Illiad and Odyssee over the Bible, just like I take my GC over the PS2". 

The keyword here is "you" and I think we all know that they were talking about "third party support" so what exactly does "your" preference have to do with their statements ? 



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Samus Aran said:

Doesn't matter, the Bible is the most read piece of literature in the world yet it's poorly written. People have poor tastes!

I'll take the Illiad and Odyssee over the Bible, just like I take my GC over the PS2. 4 player local multiplayer beats all! PS2 can't even do that without an add-on. The joys of playing Mario Kart: Double Dash and Super Smash Bros. Melee with friends and family really is unmatched by anything else from that generation. GC was also more powerful and a lot cheaper where I lived! Battlefront was great as well though, with a friend (together with the DBZ games the only fun multiplayer experience I had with the PS2).

(PS2 still beats the Bible though)

PC obliterates all the consoles combined :)  As you said, people have poor tastes.



JNK said:

its always money and market share.
If you have more market share, you dont have to pay as much money. Thats it.

Ill explain by using an example:
There is the new titel "AAA" and both MS and Sony want to make it exclusive.
The production cost of the title are 50Mio Dollars.
They predict that the title will be bought by 10% of all console owners.

Example Ps4 + xbox one release:
1,3mio xbox one and 2,5mio ps4 sales =3,8mio sales. Profit per sold unit = 20 dollar = 76 mio dollar. (-50mio Dollar production cost = 26 mio dollar total profit)

So if sony want to get the title as a exclusive, 1,3 mio xbox sales would lack.
2,5 mio ps4 sales. profit per sold unit = 20 dollar = 50mio dollar.
Because of the lack of an xbox one version, development costs will drop 10mio dollar (porting costs and co).
So to make it attractive for the developer to release the game exlcusive for sony, sony have to pay x.

Profit 2,5mio ps4 sales + 10mio cheaper development cost + X > 76 mio dollar. == X=> 16 Mio dollar
So Sony have to pay more then 16mio Dollar to get exclusive rights.




Now Microsoft
Exclusive for microsoft = -2,5mio Ps sales. = 1,3 Mio XBox one (20 dollar profit per sold unit) = 26Mio dollar.


26 Mio Dollar + 10 Mio dollar (cheaper development without ps4) + x > 76 mio dollar. == X => 40mio dollar
So Microsoft need to pay more then 40 mio Dollar to get the same title exclusive.



Sony need 16 Mio; MS 40 Mio.
Both still have to pay. But the amount will vary, depending on the market share.

/thread. 

This post nails it completely. Well done. This is what a lot of us has been trying to say yet some people fail to see something as obvious as this. Its sad that this even needs to be explained as I would have thought it were common sense. sadder still that even with explanations like this some people still just don't get it. 

Ignorance is bliss I guess. 



Yes both still have to pay, in the end it comes down to money and Sony is paying for it's deals. Yet this seems difficult for some to understand.



fatslob-:O said:
Samus Aran said:

Doesn't matter, the Bible is the most read piece of literature in the world yet it's poorly written. People have poor tastes!

I'll take the Illiad and Odyssee over the Bible, just like I take my GC over the PS2. 4 player local multiplayer beats all! PS2 can't even do that without an add-on. The joys of playing Mario Kart: Double Dash and Super Smash Bros. Melee with friends and family really is unmatched by anything else from that generation. GC was also more powerful and a lot cheaper where I lived! Battlefront was great as well though, with a friend (together with the DBZ games the only fun multiplayer experience I had with the PS2).

(PS2 still beats the Bible though)

Shakespeare has sold the most works as an author so I guess people really do have poor tastes ... /sarcasm 

"I'll take the Illiad and Odyssee over the Bible, just like I take my GC over the PS2". 

The keyword here is "you" and I think we all know that they were talking about "third party support" so what exactly does "your" preference have to do with their statements ? 

I had loads of fun with the superior looking/playing third party games on the GC like SSX3, The Lord of the Rings: Return of the King, Resident Evil 4, Viewtiful Joe, Eternal Darkness (the only scary horror game I ever played), Soul Calibur II, etc.



Yup, he's right. A bankrupt company is going up against and winning bidding wars with Microsoft. Ooookay Phil.



Thanks jlmurph!