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Forums - Sony Discussion - Do you think first/second party support will continue?

RPG said:
I'm not talking about Singstar though, I'm talking about the games with high production values which one thinks would need 1 million to at last break even ala Uncharted 2.

 

I think Uncharted 2 will easily sell atleast 2million+

 

 



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If Sony loses a lot of money this year (and I'm predicting they will) it'll be interesting to see what happens to their 1st and 2nd party support.



RPG said:
.....huh? If a certain studio is producing games which do not break even I would think Sony would not allow that to continue. GT5 would pay for the developent of Uncharted 2, GOW III and MAG but would Sony want that one studio to be the one which has to bail out the other studios?

I don't think so, at best I expect Sony to cut off the excess fat ala get rid of the useless studios such as Team ICO.

 

your thinking too small, quite frankly that is not how business works - yes Sony would accept GT5 making enough money to bail out Uncharted 2, GOW III and Mag etc. if that causes more people to purchase their system and therefore purchase more third party titles (and more 1st party titles for that matter) so eventually more money is made all around.



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RPG said:
I'm not talking about Singstar though, I'm talking about the games with high production values which one thinks would need 1 million to at last break even ala Uncharted 2.

Are you aware of how much Uncharted sold?

2.5 million. That made a lot of profit. Why would Uncharted 2 (which runs on a modified engine, and so has a lower development cost) sell any less? That's a bad example. Uncharted 2 will be profitable.

Gran Turismo 5's development costs have been pretty much covered by GT5P, the extra 8 million sales they get from GT5 will be pure profit.

God of War III: Should get around 3 million sales, or 120 million in revenue. It did not cost that much to develop.

Next R&C: I can't see that being very expensive at all, and it should reach 2 million sales. 80 million in revenue.

inFamous: I can see that doing 2 million, again, profitable.

So basically, all of the games you listed will be profitable. The only major one which may not be is Heavy Rain.

So first and second party development is not going to slow down or stop. You seem to be greatly overestimating development budgets...Killzone 2 was something like $50 million for four years of development and an engine.



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RPG said:
.....huh? If a certain studio is producing games which do not break even I would think Sony would not allow that to continue. GT5 would pay for the developent of Uncharted 2, GOW III and MAG but would Sony want that one studio to be the one which has to bail out the other studios?

I don't think so, at best I expect Sony to cut off the excess fat ala get rid of the useless studios such as Team ICO.

I am hoping that you meant in terms of profit.

Shadow of the Colossus sold close to 2 million copies. It would have at least broken even, and even if it didn't, do you really think Sony would ever close down Team ICO?



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Why do you asume first party games make only 15$ ?

Sony doesn't have to pay royalties to Sony anyway so for single copy they might be getting 20-25$ profit and then later something around 10 for platinum edition.

Plus there's the non-material profit even if some exclusive 1st party titles barely break even it is those games that make people buy ps3 instead of x360 or wii.



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RPG said:
In NA games are usually $60 right? Add the EU where games are discounted from the start (at least here in the UK) and assume for every first party game Sony get $15 for every copy sold.

My A-level maths tells me $15 x 1000000 sales = $15 million

No idea if that is close to break even point for games with high production value, my guess is that is not the case. Using the "GTA IV cost $100 million to make" example, would at least expect GT5 to be near that number.

While your math holds true, Sony gains more than $15 on a sold game, when they are publishing themselves. I don't know the exact numbers, but usually in here, people say it's something like $25-30.



RPG said:
In NA games are usually $60 right? Add the EU where games are discounted from the start (at least here in the UK) and assume for every first party game Sony get $15 for every copy sold.

My A-level maths tells me $15 x 1000000 sales = $15 million

No idea if that is close to break even point for games with high production value, my guess is that is not the case. Using the "GTA IV cost $100 million to make" example, would at least expect GT5 to be near that number.

I seriously doubt they only get $15. That would mean that the 3rd parties who pay the $10 tax to Sony only get $5 per game....

 



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RPG said:

Those being suckered into thinking Team ICO make good games are silly.

Those that believe their own opinion was the ultimate truth for every of the 6 billion humans are silly imo.

and you are right,Team ICO doesn't make "good games",in my opinion they create outstanding experiences

 



The only example I can think of being done right now would be the Killzone 2 + PS3 bundle which is £280, it is definitely not selling at a higher price than just the PS3..........£20 less actually.

Uncharted's 2.5 million sales did not come from pure sales as it was bundled, be that an extremely expensive bundle which gave a lot for your money. Also one has to factor in platinum sales which Uncharted has been for a very long time now, cost is much cheaper compared to non-platinum games.

$15 is a number I estimated taking into account that the EU rarely has games at full price. eg LBP has been £12 for a very long time now meaning Sony are selling the games to retailers for peanuts. If games really are $60 in NA for the whole of the duration of sales (unlikely) for first party games Sony get something like $25. Did not pull that number out my ass, someone at Neogaf broke down where that $60 goes.

$15 overall WW seems to high come to think of it, $10 seems a better prediction.