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Forums - Gaming Discussion - Are wii development costs really cheaper?

HappySqurriel said:
WereKitten said:

^Well, out of control development costs will lose you money by definition on any platform. That's what the control should be, isn't it? :)
Anyway, about fixed costs...
Don't you agree about CGI, motion capture, voices, marketing? If Capcom had made RE5 as a Wii exclusive I doubt that they would have spent any less in marketing.

Btw, the profit on retail numbers i used do not come from retail price. I am pretty sure that I read somewhere that the profit per sale is lower on Wii than on 360/PS3, and it seemed that other people on these forums agreed with it. But I'll look for a reference.

 


For a high profile game you would probably market it well regardless of platform ... In contrast, Haze was heavily marketed primarily because of how expensive the development was and had it been produced for the Wii (at a lower cost) its likely that Ubisoft wouldn't have seen the value in marketing it much at all.

On top of that, high quality CGI videos are not cheap and can cost millions of dollars for every minute of video (they can be done for less money but they tend to be lower quality) ... It is quite a bit different trying to justify $20 Million to develop CGI video for a game that already costs $40 Million and in-engine cutscenes will cost $5 Million, than it would be to justify $20 Million to develop CGI video for a game that already $10 Million and in-engine cutscenes will cost $2.5 Million ...

 

Haze was advertised because it was thought to have "Halo" potential if people only knew about it. I get the feeling that sony did the marketing though so that wouldn't have added to it's cost to Ubi. I don't get the idea that wii games won't need advertising because they are cheaper. IMO, 3rd party wii games don't get advertised so they can stay cheap. Marketing costs tend to rack up quick.

The whole CGI stuff is just moot. It's all about manhours and salaries. You don't seem to "get" the root cost of development. Read Shams post, he's a developer and he confirms what I consider the true cost of development in my OP. CGI = more time in. If extra levels were taken out to make time for CGI, it won't necessarily cost more. All that other stuff is technology that the studio already possesses.

 

 

 



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This year EA Sports Active will get a marketing push of $10 Million from EA which is the same amount that Madden gets each year for marketing over every platform.

Huge amount for a third party Wii title and I think this is what devs should do with money saved from the development costs of Wii games.



 

Pristine20 said:

Haze was advertised because it was thought to have "Halo" potential if people only knew about it. I get the feeling that sony did the marketing though so that wouldn't have added to it's cost to Ubi. I don't get the idea that wii games won't need advertising because they are cheaper. IMO, 3rd party wii games don't get advertised so they can stay cheap. Marketing costs tend to rack up quick.

The whole CGI stuff is just moot. It's all about manhours and salaries. You don't seem to "get" the root cost of development. Read Shams post, he's a developer and he confirms what I consider the true cost of development in my OP. CGI = more time in. If extra levels were taken out to make time for CGI, it won't necessarily cost more. All that other stuff is technology that the studio already possesses.

 

 

 

 

First off, I completely understand where development costs come from ... I was one of the first people (years ago) to suggest the $100,000 per developer per year estimate for development costs due to the salaries, benefits and associated costs with keeping someone employed; although, it can cost more (in some cases $150,000 per developer per year) if the team is in a particularly expensive city, where everything from salaries to office costs can be dramatically higher.

Companies like Epic have kept costs down by offshoring a lot of work to studios in China, where for (less than) 1/4 the cost you can get a similarly talented developer ... In most (successful) cases of offshoring that I have heard of the work that is offshored is the creation of artistic assets that are (primarily) used to populate the environment; for example, you would get your chineese studio to model and texture a trash-can which can then be place in the environment by your level designer.

Now, Haze was a game where (it seems like) the publisher forced the game out the door because development had taken too long and the developer was far over budget. This game was then supported by a marketing budget that seemed to be far larger than any non multi-million selling Ubisoft game (I can think of) and (about) the only reason that I can think of for this was that Ubisoft thought that the only way they could (come close) to break even was to throw enough money into marketing that the game would sell well enough ...

At the same time, there have been a few publishers that defended their lack of marketing for certain Wii games by claiming that the marketing budget is primarily determined by the game's budget ...

 

 

There is nothing saying that HD console games have-to cost more than Wii games (or that Wii games have-to cost more than an N64 game), after all they could stick to similar geometric detail and texture detail (with higher resolution models and textures to limit artifacts), with similar texture effects, as games produced for the PS2/Wii and output these games at a higher resolution and it shouldn't cost dramatically more than a Wii game ... Unfortunately, we haven't seen any developer take this approach, potentially because they're afraid that the HD console market really does only care about how a game looks (from a technical perspective)/



@Plaupius
Sorry if my table was misleading, it was not meant to be.
My rationale was simply to index the table using each version's sales. As in: I code an FPS that I think will potentially sell about 2.5M on each of the HD platforms on average (most probably skewed towards 360 sales). How does this fare against selling the same on the Wii?

You say: how come you can treat each version as if it had roughly the same sale projection. The install base of the Wii is approx. the same as 360+Ps3, but the effective target market depends on the game genre. For FPSs for example up to this point it has been proven that the Wii market responds less than each HD console. This can obviously still be disproven if, say, the conduit manages to sell more than a good FPS on PS3 or 360.

Speaking in general I don't think it's too wrong to assume that about half of the Wii owners belong to the "extended audience". That audience will be interested only in a little number of the AAA big games we're talking about here such as some platformers and simple racers and sports games, but not into the majority of them (think Resident Evil, Final Fantasy, western RPGs, mature shooters, complex adventure games, race sims), thus I took an "effective market" for the Wii of about the size of each HD console, with the caveat as I stated of games that you know will sell well to the Wii demographics,ie also to the extended audience.

Under this assumption, it was reasonable to make that table. If you don't think the assumption is valid, you can still read it, just remember what each column means.

With shams numbers ($18.5 vs $14), I can update my table to this:

Sales
x console Profit Wii Profit PS3+360 1M -6M -11M
1.5M 1M 7.5M
 2M 8M 26M
2.5M 15M 44.5M

Just for reference: the break even sales are about 1.43M on the Wii, 2.59M on PS3+360 (1.29M average and on my table)

And double check your math about HD needing 7-8M sales more, it is wrong. The correct one is

Profit Wii= $14*sales Wii -$20M= Profit HD = $18.5*sales HD -$48M

=> sales HD = sales Wii *14/18.5 +28M/18.5 = 0.76 * sales Wii + 1.51M

So say that a Wii game sells 2.5M, then the same profit ($15M) will require about 3M HD sales (in total between PS3 and 360)



"All you need in life is ignorance and confidence; then success is sure." - Mark Twain

"..." - Gordon Freeman

Procrastinato said:
ameratsu said:
Where are people pulling some of these numbers from?

30-60 million for killzone 2 (really? a 30mln gap in the range?)
100 million for gta 4 (supposedly)

i take it these are just speculative numbers

 

They're just guesswork, of course.  KZ2 was quoted at around "30 million euros" at some point, and the value of that in dollars waffles constantly.  KZ2 was in development for like 5 years, so during a large portion of that time, the euro and the dollar were mostly on even terms.  I've never seen the 100 million quote for GTA, so I can't comment on it.  It's high expense was almost all attributed to voice acting, marketing, mo-cap, and other platform-independant expenses though, I know that.  Also, its the most expensive video game ever made, to my knowledge... the ultimate extreme.  I have no idea why its ever brought up in these discussions.

Back to KZ2, if we're talking platform-driving exclusives, we should compare it to SMG, which cost around 17M, and, on top of that, is on a platform that probably had most of its engine technology in place already (as has been quoted many times in this thread) -- in other words, it would have saved huge amounts from existing engine tech at Nintendo, much like Gears of War saved with existing Unreal tech.  In the end, its cost, if started from scratch, probably would have been over 20M, maybe even close to 30M.

Also note that 10 million dollars, 7 years ago (last gen) is a fair bit more money than 10 million today.  If Wii games cost the same, or less, in current-dollars, than PS2 games did 7-years-ago-dollars, there's definately something wrong with the "Wii math" here.

Attributing cheap dev costs to the Wii platform, and not to the project instead, is a complete farce.  Why people cannot except that 3rd party offerings suck thanks to their lack of investment, is beyond me.

 

 Where'd you get the estimate on SMG?



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I read an estimate a while back that put Mario Galaxy at $19 Million.. Still in the same general ballpark figure though



 

puffy said:
I read an estimate a while back that put Mario Galaxy at $19 Million.. Still in the same general ballpark figure though

 

that, is pretty cheap vs the amount of money it made and the quality of the game. no wonder Nintendo has the best 1st party devs o_O



6 pages of people giving you the correct asnwer and you're still going?

It's really simple. Few people are required to make a standard Wii game versus a standard PS3/X360 game. No hidden mysteries, no if this, if that BS, no considering these irrelevant factors....it's simply that. Fewer people required per average title.



The rEVOLution is not being televised

i lol'ed considering that most expensive wii game so far was Red Steel that costed 12.75mln$(and most of the money took Unreal Engine 2.5) and it was said that 12.75mln$ was this project whole budget - so there you have development costs, ads and so on(considwering that nintendo made most RS ads ubisoft didn't do much). now please name me a single hd retail game that had just the development costs at that level? there's none cause most of those games are 20-25mln$ and more.

besides super mario galaxy needed only about 250k sales to make profit if we can believe in what nintendo is saying.



^Lair costed about that much to develop, actually (12-15M).

update: apparently this was only the scheduled cost, but it probably balooned as the game got delayed. I'll see if I can find other data about games that came out in the same timeframe. I suspect that's the ballpark for the time.


And SMG is first party, so obviously Nintendo makes more on each copy. But if it costed 20M then there's no way it could break even at 250k sales. More about 0.8-1M, probably. Link to your source?


Anyway, we're talking third party here.



"All you need in life is ignorance and confidence; then success is sure." - Mark Twain

"..." - Gordon Freeman