steven787 said:
LordTheNightKnight said:
steven787 said:
LordTheNightKnight said:
"LOL, unfortunately when you are talking about publicly traded companies a profitable 100-200k seller is a drop in the bucket (or market cap)."
That's ignoring cost, and pretending higher sellers, with the same profit due to cost, somehow aren't a drop in the bucket. |
What? No, even if a company made $15 per copy in profit *(which they don't) and sold 200k that's $3 million. To a small company, that's a lot. To EA (6.15 billion market cap/4 billion in revenue/ they still manage to lose a billion dollars last year) that is insignificant... never mind the fact, if you had read the rest of my post instead of only the first line, a larger company (the type pachter is concerned with) is not able to make a "core" game with a low enough budget to make a profit off of 100-200k.
I did not forget or ignore cost.
I am not pretending anything.
I am talking about pachter, talking about large companies. He's not concerned with the small privately held firms, unless he's specifically says that he's talking about those firms (and usually in relation to the whole market or a larger firm).
Do me a favor, do not take any more of my quotes out of context (unless they make for a good double entendre and are funny).
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If that three million is from an HD game, it's still the same profit. You claim I'm taking you out of context. No. You're just looking at half my argument.
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I was wrong, you aren't taking it out of context. You do not understand. Maybe it is my fault. I will break it down into three pieces.
Pachter is talking about trends of large companies. Not the niche products or small developers.
Large Publishers and Publicly Traded companies are big and bulky. They wouldn't be able to producing a core game with a low budget, like a small company can. So a large company cannot make that type of profit off of a "core" game because 100-200k is not enough for them to make a profit with their slower, costlier development cycles.
Wii owners do not buy as many "core" games as owners of other consoles.
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And perhaps I didn't make my point clear. Even though the big companies make games that sell, the cost of HD systems is still high that even if they make money, only the really big hits have a high profit margin. So even if the Wii doesn't seem that profitable, the HD systems are not that profitable either unless a company manages costs in general (like Ubisoft and Activision, which are supporting all the home systems).
