| NJ5 said: @Gamerace: I think you vastly overestimate gaming companies' market research and analysts. If it was so good, we wouldn't see so many companies with financial problems. There's also that NPD statistic in which they said only 2-3% of current-gen console owners have more than one current-gen console. I don't think your theory is plausible. |
Their financial problems are caused by trying to give the core gamer what they want - more, more, more at ever decreasing profit margins. GTA IV is a perfect example. Sure it sold well but not GTA:SA well and it cost many times more to produce meaning their profit margin is crap compared to what they made on GTA:SA.
According to Edge Magazine (an industry insider mag) a game that cost 40m to make needs to sell 2m copies to break even. Which means few games are really big money makers this generation and because studios have become so large to accommodate HD needs the labour costs are horrendous. If you start a project and then mossball it (which happens frequently) that's now millions in losses that'll never be recovered.
Nothing wrong with the market analysis. They understand the core market well. It's just becoming a money-lossing proposition to cater to them unless you get a CoD4 hit.









