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Forums - Sales Discussion - Selling 1 million units is no longer enough

Khuutra said:
Aprisaiden said:
Selling 500k+ for most games is still considered a success, as the game should break-even or return some profitability. This article is mainly referring to high budget titles and the big issue with them is the way they are given excessive marketing budgets, development budgets AND are expected to generate enough profit to make up for the lower budget titles that failed to turn profitable.

The answer to this problem is to learn how to reduce the cost of high budget titles and for the industry to actively teach various consumers that they should be buying the high quality AAA budget titles for there consoles and not "casual mini-game collection 8,567: this time we got 40% on meta-critic"

The consumer is plenty educated about what they want to buy - companies don't neeed to tell them that. Consumers need the companies to adapt to them.

Actually most consumers have no idea what they should buy, as such they buy cheap games -- which are often games that many core gamers consider bad. These are the cosumers who think games like Transformers Wii are the best the industry has to offer, they don't know that MGS4/Halo3/FFXIII/Valkyria Cronicles/Zelda:TP/etc exist and they arn't going to bother researching about these games themselves.



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Aprisaiden said:
Khuutra said:

The consumer is plenty educated about what they want to buy - companies don't neeed to tell them that. Consumers need the companies to adapt to them.

Actually most consumers have no idea what they should buy, as such they buy cheap games -- which are often games that many core gamers consider bad. These are the cosumers who think games like Transformers Wii are the best the industry has to offer, they don't know that MGS4/Halo3/FFXIII/Valkyria Cronicles/Zelda:TP/etc exist and they arn't going to bother researching about these games themselves.

Actually, it's more to do with the fact that the average consumer thinks that the games core gamers care about just aren't worth their time. They have different value sets when it comes to games. This does not make them uninformed or wrong, it just means they have different tastes.



Maybe it is silly that a million seller isn't a blazing success but you can't blame developers for wanting sales like Modern Warfare 2 for instance, that game is selling like nothing else ever has (3rd party multiplatform that is).



Mummelmann said:
Maybe it is silly that a million seller isn't a blazing success but you can't blame developers for wanting sales like Modern Warfare 2 for instance, that game is selling like nothing else ever has (3rd party multiplatform that is).

The issue is everyone took the Halo idea where everything is hyped beyond belief and it makes it like there's a summer blockbuster film coming out every week and is marketed as such, if you want to know why attach rates are so high for 360 thats the reason, but even that can't make enough people to buy enough of the big games so every game can break even.  

Only a select few get the needed sales to be a rousing success, most can get a million maybe two which last gen would be nothing to scoff at but this gen that seems to be the line to keep your head above water, its just the game industry is going to spiral into oblivion at its current rate with developers and publishers dropping like flies/posting HUGE losses, what does it really matter if you can get Halo 3 type sales if every other game you release negate those big sales and you end up going in a hole.



MaxwellGT2000 - "Does the amount of times you beat it count towards how hardcore you are?"

Wii Friend Code - 5882 9717 7391 0918 (PM me if you add me), PSN - MaxwellGT2000, XBL - BlkKniteCecil, MaxwellGT2000

MaxwellGT2000 said:
Mummelmann said:
Maybe it is silly that a million seller isn't a blazing success but you can't blame developers for wanting sales like Modern Warfare 2 for instance, that game is selling like nothing else ever has (3rd party multiplatform that is).

The issue is everyone took the Halo idea where everything is hyped beyond belief and it makes it like there's a summer blockbuster film coming out every week and is marketed as such, if you want to know why attach rates are so high for 360 thats the reason, but even that can't make enough people to buy enough of the big games so every game can break even.  

Only a select few get the needed sales to be a rousing success, most can get a million maybe two which last gen would be nothing to scoff at but this gen that seems to be the line to keep your head above water, its just the game industry is going to spiral into oblivion at its current rate with developers and publishers dropping like flies/posting HUGE losses, what does it really matter if you can get Halo 3 type sales if every other game you release negate those big sales and you end up going in a hole.

I'm not saying its very clever the way things are run, just that I understand why they'd strive to make a blockbuster in the first place. There's also the issue of many developers making pure shaite and releasing it, that also costs them. Things like Rogue Warrior is bound to set back any developer, I don't even understand why they spend money on developing something like that.

The movie industry is in the same boat though but its doing fine, even with its claims of being near sunk by piracy. The game industry in its current form won't disappear any time soon but I don't like the fact that a few big and more wealthy developers buy the small fries and force them into making silly stuff for Iphone or whatever, or simply stealing their talent and abandoing the studio all together. Bankrupcy is nothing new though, there was also a surge of red numbers in the mid and late 90's where many of the developers from the golden era of PC gaming, for instance, perished or were bought and abused (Westwood is the perfect example, butchered and stripped and made to make whatever tosh EA set them to).

Everyone in here is ranting on about how this is the best generation ever (I disagree though) but how can it be that developers have made some of the finest games ever if they're going under and how can practically all sales records from previous generations be shattered? The industry is doing fine, a lot of (or most of) the crashes we're seeing are related to the financial crisis, the world of green has gone to shit lately in case no one has noticed. It reminds me of when we got the new smoking prohibition here in Norway, every nightclub, bar and pub owner screamed bloody murder and said they'd all surely perish if no one was allowed to smoke inside. Some did perish, but most of them would have anyway due to bad decisions having been made earlier on and shoddy leadership/running of daily affairs. In fact; the amount of places that went under was the yearly same (yes, more developers than usual have gone under but like I said; financial crisis, nearly all industries on earth have taken massive hits) as before the prohibition but it was a nice scapegoat for them to use when they ultimately failed.

My point is; a lot of developers were headed for shit valley as is and a lot of publishers and developers go under all the time due to the nature of the competitive market and with the financial crisis still looming over us, having among other things decreased Japan's export rates by nearly 55%, its a small wonder that not even more go under. Is the industry in trouble? Parts of it, yes, as always. But the same goes for all other industries at the moment. They don't need to radically change, the market is largely the same, they simply (allthough I don't know if its actually simple) need to smarten up and think harder about what they're doing and perhaps ponder their ideas a little more before wasting millions on them (again, Rogue Warrior seems like a fitting example). Besides, the "savior" of the industry, Nintendo, has proven to be a challenging ground to do battle on as well and I'm not sure that the industry at large agrees that Blue Ocean is so cool unless you have Nintendo branded on your box (no 3rd party effort will ever move Nintendo numbers, that's just a fact). Damned if you do, damned if you don't, at least in here.



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Its sad, but the truth – current 'highest tech' games cost a shitton to make. I honestly have enjoyed the high budget games this gen more than the 'gameplay focused' retro style games, despite the potential that they could bring back the fun of the 16 or 32 bit era. I'd even say that ports of my old favorites onto PSN/XBL have been far more enjoyable than today's 'retro' styled arcade downloads. My experience is that these games lack the spirit and drive of that era, and are just poor imitations of their classic arcade counterparts. I mean, does anyone think Castle Crashers stands up to Guardian Heroes, or even Final Fight 2-3, Streets of Rage, or Dungeons and Dragons CPS2 for that matter?

That said, I'd be much happier to see games sort of peak at a technological level around where they have this gen – MGS4, FF XIII, Uncharted, Gears, and others, and instead see the costs for that level of development decrease over time as tools and strategies are built around 'next gen' development styles. Let's pull the industry up rather than sink to an old standard.

I love my simple fun, but its almost 2010, and more often than not these attempts play out as the cheap ploys for easy profits they are.



"Why does everyone ask about Chrono Trigger? (responding to a comment about the title being loved) That's not what the sales tell me! If people want a sequel, they should buy more!" - Square Enix Senior Vice President Shinji Hashimoto

This isn't news to me. Obviously big budget games need to sell more than a million. I'm sure that was the case last gen as well.



FFXIII, this game is going to sell less than any other previous Final Fantasy, and with bigger budgets and production cost i have a hard time believing this was a good investment.



8888brocoli123 said:
FFXIII, this game is going to sell less than any other previous Final Fantasy, and with bigger budgets and production cost i have a hard time believing this was a good investment.

 

Lets say they sell just 5 Million (I think it will sell 6 Mio or more). 5 Mio *60 Dollar is 300 Million Dollar. Subtract 60 Mio development cost 240 Mio Dollar. lets say 80 Mio for Advertisment package shipping and profit for retailers and Sony. So they earned 160 million dollar and this is conservative even if it sells as good as FFX-2 (it has similar numbers yet) it would be more then 5 Mio. And lets not forget that in Jaoan the game started at 8500 yen which is 95 Dollar the lowest price at amazon is still 7400 yen about 85 Dollar. Ofcourse its cheaper somewhere but the average price is still high.

 

In Europe the Game costs 50-60 euro atleast  thats 80 Dollar or 7200 yen they will sell some at budget price (the first 5 mln definetly not) but the first sales are full price in Japan they sold 1.5 Million at 80 Dollar then the Lightning edition for 500-600 Dollar Square got a nice cut there too. FF13 will be the most profitable game for Square enix this Generation. They will earn good sums. If FF13 is not profitable a 5million+ game then nothing is profitable anymore. In the thread stated a lot of people that just some games are struggeling the big ones are lucrative. Those games are extremly lucrative and FF is one of them Be sure Square will earn TONS with FF. It will earn more then DQ since its selling world wide very good plus its not over yet in Japan it will crawl to 2 mio atleast during the next weeks. Wait for next week normaly FF which are released on small userbase tend to be not as frontloaded as FF released on huge userbase. You could give dozends of good examples but you took one of the games which are a extremly lucrative. And which is probably the most lucrative game from SquareEnix released this gen (not counting future releases).

 

FF13 will be in the Top 20 games which brought the most money for their companys in this gen. There is simply no discussion about it. Just because it sells 200k less first week then other FFs it doesnt mean it will not be profitable. make yourself a calculation you will see for yourself that this is just wrong. Plus minus 500k is not much of a difference if you talk about games which sell 5 Mio 6 Mio or more. Why do you think MS was so eager to pay for FFXIII  a bucketload of money just to get also a version ? Why do you think everybody talks about FF do you really think that a difference of 200k first week in Japan will make such an impact that the game went from extremly profitable to not profitable ? 

 

Even if it would sell half of FF12 sales it would be still profitable.  games which sale over 1 million probably dont have as big profits as before but I doubt that they are considered a failure. It also depends at what price they were sold. Its just that 1 million is not impressive anymore but a 5 Million+ game is still huge and will profit definetly.



Mummelmann said:
MaxwellGT2000 said:
Mummelmann said:
Maybe it is silly that a million seller isn't a blazing success but you can't blame developers for wanting sales like Modern Warfare 2 for instance, that game is selling like nothing else ever has (3rd party multiplatform that is).

The issue is everyone took the Halo idea where everything is hyped beyond belief and it makes it like there's a summer blockbuster film coming out every week and is marketed as such, if you want to know why attach rates are so high for 360 thats the reason, but even that can't make enough people to buy enough of the big games so every game can break even.  

Only a select few get the needed sales to be a rousing success, most can get a million maybe two which last gen would be nothing to scoff at but this gen that seems to be the line to keep your head above water, its just the game industry is going to spiral into oblivion at its current rate with developers and publishers dropping like flies/posting HUGE losses, what does it really matter if you can get Halo 3 type sales if every other game you release negate those big sales and you end up going in a hole.

I'm not saying its very clever the way things are run, just that I understand why they'd strive to make a blockbuster in the first place. There's also the issue of many developers making pure shaite and releasing it, that also costs them. Things like Rogue Warrior is bound to set back any developer, I don't even understand why they spend money on developing something like that.

The movie industry is in the same boat though but its doing fine, even with its claims of being near sunk by piracy. The game industry in its current form won't disappear any time soon but I don't like the fact that a few big and more wealthy developers buy the small fries and force them into making silly stuff for Iphone or whatever, or simply stealing their talent and abandoing the studio all together. Bankrupcy is nothing new though, there was also a surge of red numbers in the mid and late 90's where many of the developers from the golden era of PC gaming, for instance, perished or were bought and abused (Westwood is the perfect example, butchered and stripped and made to make whatever tosh EA set them to).

Everyone in here is ranting on about how this is the best generation ever (I disagree though) but how can it be that developers have made some of the finest games ever if they're going under and how can practically all sales records from previous generations be shattered? The industry is doing fine, a lot of (or most of) the crashes we're seeing are related to the financial crisis, the world of green has gone to shit lately in case no one has noticed. It reminds me of when we got the new smoking prohibition here in Norway, every nightclub, bar and pub owner screamed bloody murder and said they'd all surely perish if no one was allowed to smoke inside. Some did perish, but most of them would have anyway due to bad decisions having been made earlier on and shoddy leadership/running of daily affairs. In fact; the amount of places that went under was the yearly same (yes, more developers than usual have gone under but like I said; financial crisis, nearly all industries on earth have taken massive hits) as before the prohibition but it was a nice scapegoat for them to use when they ultimately failed.

My point is; a lot of developers were headed for shit valley as is and a lot of publishers and developers go under all the time due to the nature of the competitive market and with the financial crisis still looming over us, having among other things decreased Japan's export rates by nearly 55%, its a small wonder that not even more go under. Is the industry in trouble? Parts of it, yes, as always. But the same goes for all other industries at the moment. They don't need to radically change, the market is largely the same, they simply (allthough I don't know if its actually simple) need to smarten up and think harder about what they're doing and perhaps ponder their ideas a little more before wasting millions on them (again, Rogue Warrior seems like a fitting example). Besides, the "savior" of the industry, Nintendo, has proven to be a challenging ground to do battle on as well and I'm not sure that the industry at large agrees that Blue Ocean is so cool unless you have Nintendo branded on your box (no 3rd party effort will ever move Nintendo numbers, that's just a fact). Damned if you do, damned if you don't, at least in here.

No one has ever pushed Nintendo numbers ever, even prior to "blue ocean" the closest things were The Sims and damn near anything Blizzard, but thats a testament to quality, marketing, and being open to everyone much like Nintendo.  As for doing well on Nintendos own platform, multiple publishers and developers already have had great success, it just dumbfounds me that all these companies would rather piss away millions on something like Rouge Warrior but couldn't be bothered to make a simple game based around pure gameplay and market it well on any platform not just Nintendos, when you focus on the core element which is gameplay and just make something that looks aesthetically pleasing, you don't have to spend ass loads of money and you could even put that money into marketing your game.

I do agree shit developers/publisher making shit decisions deserve to go under, (ex: Brash and Grin Studios) but these companies also take out other good companies with them that just made a fatal mistake they couldn't have seen coming, like Factor 5 being told by Sony that making Lair would only be about 10 million dollars, they hop aboard and realize that it was going to take 20 million and that they were already in too deep to back out, after that they needed to make some bank and paired up with Brash that went under and no one picked up their project, they were finished.  

Another example is Free Radical pairing up with Ubisoft that made them constantly change Haze until it wasn't what they intended it to be, it of course flopped, then they paired with Lucas Arts to make Star Wars BF3 which was dropped by Lucas Arts and they were screwed.  Now I know these kinds of things have always happened in the industry but before they'd take the hit, make a few quick projects usually licensed stuff, and be back up on their feet, however this generation one mistake can kill an entire company, and it obviously doesn't even have to be their fault, I'm certain the guys at ensemble studios feel the same way.

As for the movie industry reference, after many companies went under they started to learn that you can't have 3 summer "blockbuster" movies within a couple of weeks of each other, it worked for a little while yes but then people started to get fed up and would only go to a couple.  The game industry used to spread their games out or just didn't green light so many high budget games, this gen its obvious that increased a lot, and they're going to destroy themselves in the process unless they adapt, which right now isn't looking likely.



MaxwellGT2000 - "Does the amount of times you beat it count towards how hardcore you are?"

Wii Friend Code - 5882 9717 7391 0918 (PM me if you add me), PSN - MaxwellGT2000, XBL - BlkKniteCecil, MaxwellGT2000