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Forums - Gaming - How to stop increasing development costs?

CrazyHorse on 19 July 2009

I don't think there is a viable way to stop increasing development costs but there are a number of options companies can take to reduce the risk associated with them

Most of these options we are already seeing now with the release of DLC and episodic content which will help to bring in extra revenue at relatively very little cost. The milking of franchises which are well established will continue to reduce the risk of creating a 'flop'. I also think that we will start to see more mega publishing/development companies (like EA, Activision) which, having larger cash flows, will be able to absorb the potential loses in creating new IP's. These IP's will then be grown into franchises using the same game engine/design to limit costs and an increasing fanbase to increase sales to make a profit.

Of course, they can always raise the price of games too!



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Barozi on 19 July 2009

Not creating own game engines.

But then even more games would be the same somehow



NJ5 on 19 July 2009
Slimebeast said:
NJ5 said:
Slimebeast said:
Ubisoft already declared that there will be many ~$100 million budget games in next gen.
(I cant remember the exact figure)

So it seems the publishers are prepared for increased costs.

Will they get the money to fund all those games from unicorns and tooth fairies?

 


Hehe, I'd like to know too. But probably they had mega selling games like Assassin's Creed in mind.

U can actually target 10 million copies and still make money from a $150 million budget game I would think.

10 mill x $15 = $150 mill  dev cost + $75 mill marketing = $225 mill. Kinda like a typical Hollywood blockbuster. That would mean $22.50 from each copy sold and the surplus $5 or so becomes profit.


$150 million game budgets = I can't wait.

I don't doubt there will be some games with that kind of budget. But I think the Ubisoft guy said something about "average budget".

Either he was misquoted or he should be put in a room with rubber walls.

 



My Mario Kart Wii friend code: 2707-1866-0957

Slimebeast on 19 July 2009

@NJ5

Yes, but I dont think he said $100 mill, or at least he didnt mean average budget by that.

I cant remember what he said.



Slimebeast on 19 July 2009
billsalias said:
I think three things are needed: standards, tools, specialization.

For example, we need standard ways for models and art to be packaged and reused, we need better tools for automating the process of reusing those standard component, then we need divisions or independent companies to build these components and sell them for use in many games.

A simple example is foliage, if there was a company that made great foliage with lots of customization options and it could sell it to many developers it would be cheaper for the developers yet that company could still make money.

You see this pattern in all industries as they mature.


Speedtree is a popular foliage-generator that smart companise license.

Bethesda is a smart developer, they license a lot of middle-ware.



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CrazyHorse on 19 July 2009
Slimebeast said:
@NJ5

Yes, but I dont think he said $100 mill, or at least he didnt mean average budget by that.

I cant remember what he said.

I think he said $60 mill if this was the interview you were referring too.

 

http://www.edge-online.com/news/ubisoft-development-costs-to-double-next-gen



invetedlotus123 on 19 July 2009

Well, i get worried about this is that companies may stop trying to make innovative and revolutionary games just as happens with hollywood and just make games they are sure that will sell at mainstream. I mean, this why hollywood movies are getting worse everyday that go, they have to make sure it will sell and then fulfill the movies with cliche and generic situations, this why sci-fi movies beside Star Wars don't get decent plot.



Slimebeast on 19 July 2009
CrazyHorse said:
Slimebeast said:
@NJ5

Yes, but I dont think he said $100 mill, or at least he didnt mean average budget by that.

I cant remember what he said.

I think he said $60 mill if this was the interview you were referring too.

 

http://www.edge-online.com/news/ubisoft-development-costs-to-double-next-gen


Yes, that's the one.

An average AAA game budget doubles from $20-30 mill to $60 mill. Awesome.

And from that one can work out that the highest budget $70-100 mill of this gen will reach $120-150 mill in next gen. ^^



NJ5 on 19 July 2009
CrazyHorse said:
Slimebeast said:
@NJ5

Yes, but I dont think he said $100 mill, or at least he didnt mean average budget by that.

I cant remember what he said.

I think he said $60 mill if this was the interview you were referring too.

 

http://www.edge-online.com/news/ubisoft-development-costs-to-double-next-gen

Thanks for the link. It's still crazy, when most publishers are struggling for profits with half the costs in this gen.

 



My Mario Kart Wii friend code: 2707-1866-0957

Kasz216 on 19 July 2009
NJ5 said:
Slimebeast said:
Ubisoft already declared that there will be many ~$100 million budget games in next gen.
(I cant remember the exact figure)

So it seems the publishers are prepared for increased costs.

Will they get the money to fund all those games from unicorns and tooth fairies?

 

You've gotten snarkier lately...

I like it.