Only 80 Games A Year Will Succeed 96
0110011001110101 writes "Next Generation reports on the risks involved in game publishing and development. A report has been released suggesting that, in the next generation, as few as 80 games a year will turn a profit. Development costs in the next generation are set to rise from $3 -$6 million per title to $6-$10 million, with some cases surpassing $20 million." From the article: "Screen Digest's analysis shows that in the U.S. in 2004, titles based on licensed IP, such as Madden NFL 2005, sold 23% more units than titles based on original content. However, the short term revenue gains of licensed IP, does not necessarily translate into greater profits. Licensing costs are rising as IP owners become increasingly aware of the growing importance of the games medium."
So? (Score:3, Insightful)
Re:So? (Score:3, Insightful)
Re:So? (Score:1)
Or is this an urban legend of sorts?
Re:So? (Score:2)
Does it include... (Score:3, Funny)
Re:Does it include... (Score:2)
That's the way it works (Score:5, Insightful)
Then there's the few examples like Napoleon Dynamite or Pi, that show you just how little money it takes to put an excellent story to the top of the charts and become insanely profitable. But of course the industries look at those as anomolies and go back to cranking out Batman Twelve with Tom Cruise and Lindsy Lohan.
Let's see some real innovative games, then I'll cry when only 80 a year succeed.
Look at Nintendo (Score:2, Insightful)
As much as people 'rag' on Nintendo for using the Mario franchise in 'all of their games' the reality is that it saves Nintendo a ton of money when developing a game; a big chunk of the models, textures, animations, sounds and music can be reused which reduces the cost of developing a new game. I would guestimate that Nintendo probably sp
Re:That's the way it works (Score:1)
Primer though....now theres a good movie made on a budget...check it out...
http://www.primermovie.com/ [primermovie.com]
Re:That's the way it works (Score:2)
License == hit??? (Score:3, Insightful)
GTA had no "license" to exploit, but I dare say it sold considerably better than the "Lord of the Rings" games.
Want to make a lot of money on a game? Design one that's fun to play.
Re:License == hit??? (Score:2)
The truth is more that there are a lot of true hits - mostly sports titles - that are liscenced and that skews the stats.
If they took sports titles out of the mix, I think the numbers would be more comparable.
Re:License == hit??? (Score:4, Insightful)
Trying to judge the overall videogame market by a) what's good and b) people who are so into games that they talk about them on the Interweb ignores a huge portion of real world sales.
Re:License == hit??? (Score:4, Informative)
ONE movie tie-in (Spiderman, which some gamers insist did not suck)
TWO other licensed properties (Madden, which definitely did not suck, and Pokemon.)
The other seven, while almost all sequels, were popular for the game itself, not for being tied to some summer blockbuster.
1 - Grand Theft Auto: San Andreas - PS2 - Take II Interactive
2 - Halo 2* - XBX - Microsoft
3 - Madden NFL 2005* - PS2 - Electronic Arts
4 - ESPN NFL 2K5 - PS2 - Take II Interactive
5 - Need For Speed: Underground 2 - PS2 - Electronic Arts
6 - Pokemon Fire Red W/ Adapter - GBA - Nintendo of America
7 - NBA Live 2005 - PS2 - Electronic Arts
8 - Spider-Man: The Movie 2 - PS2 - Activision
9 - Halo - XBX - Microsoft
10 - ESPN NFL 2K5 - XBX - Take II Interactive
Re:License == hit??? (Score:2)
Re:License == hit??? (Score:2)
That "licensing" tie-in is about using the game to promote ESPN, not vice versa.
Re:License == hit??? (Score:2)
Re:License == hit??? (Score:2)
Re:License == hit??? (Score:1)
Re:License == hit??? (Score:1)
Re:License == hit??? (Score:2)
Yes, I apparently can't spell lizenzed so I will at least clearly mispell it rather than try to spell it right.
Re:License == hit??? (Score:1)
Um... only if you count "ESPN" as a "license"
NFL itself is a license, and so is NBA.
Re:License == hit??? (Score:1)
Re:License == hit??? (Score:2)
I just went to Amazon and took a look at a couple of the characters I mentioned above. Shrek 2 - now an "old" game that has reached the $20 pricepoint - clocked in at 113 in video games and 225 in electronics. Pretty good, huh? The #1 gaming product at Amazon today is the Spongebob Squarepants GBA deal. Chicken Little for GBA is on the rise at #25; New Harry Potter at 29, 31, 58; Disney Pr
Re:License == hit??? (Score:1)
Re:License == hit??? (Score:2)
Please cite your sources (Score:1)
Umm, because Pokemon is a cartoon. It didn't start out as a game.
I don't believe your assertion. Please demonstrate its truth. On what basis do you claim that, say, the following statement in the Wikipedia article about Pokémon [wikipedia.org] is inaccurate? "The Pokémon franchise originated with a series of Japanese video games created by Satoshi Tajiri for the Game Boy."
Re:License == hit??? (Score:2)
Re:License == hit??? (Score:2)
This kind of statement is so devoid of content that it is worthless- it's like saying 'make good movies instead of bad ones, and then people will go to them'. So what is a fun game? How does one design a fun game?
I suspect that the essence of fun cannot be objectively determined, and that whether a game is fun or not can only be determined very late in the production process.
One proposal would be that a game that turns out to be non-fun
$20mil for a GAME? (Score:3, Insightful)
Why, I can make you a really top-notch game for HALF that much! (Flash is ok, right?)
Re:$20mil for a GAME? (Score:2)
If you're an established company, and you don't pay a premium for voice talent, you should be able to make a top-notch game of
Re:$20mil for a GAME? (Score:2)
Maybe they needed new hats [penny-arcade.com].
Re:$20mil for a GAME? (Score:2)
I just don't understand where all that money goes. There's truckloads of young programmers and artists out there who would love to get involved in the games industry. It's not like there are only six guys in the world
Re:$20mil for a GAME? (Score:2)
Unfortuanately most of them are worse than awful.
Re:$20mil for a GAME? (Score:1)
Re:$20mil for a GAME? (Score:2)
WoW was in the $22 Mil range, and once they installed the number of servers they actually needed was alot more. EQ2 was close to $30 Mil.
A couple things (Score:3, Insightful)
Translation: Hire me! I'll make sure you have a few of those 80!
Only 80 [major release] games will be profitable. Dev costs of 3-6 mil, marketing costs up the wazoo, licensing costs eating up more of the pie... the game industry is turning into the movie industry.
TFA says that there is a lack of good management in the games industry, causing tons of bankruptcies etc. I say, great! I'd rather not have a static set of three game companies creating all the content. Besides, part of the reason that so many gaming companies drop off the face of the earth is that there is actual competition in the games industry... it's put up or shut up.
Whereas, in the movie industry, the consumer will put up with any schlock as long as it is one step better than the current competition (which changes frequently, due to short theater runs).
Re:A couple things (Score:2)
Re:A couple things (Score:2)
Re:A couple things (Score:2)
First off, there's no amount of money that can simply be converted to a 'totally awesome' movie. You have to work at making a movie and hire a lot of other people to help make it, it takes a long time, and there's a great deal of risk.
Anyone can say 'I could make a better movie than that for that much money' or say they should have hired someone else that has a proven ability t
Re:A couple things (Score:2)
Re:A couple things (Score:2)
Re:A couple things (Score:2)
indie development (Score:1)
Still a young industry (Score:3, Insightful)
At times, this pays off quite well. Grand Theft Auto and other innovative games push the industry as a whole into new directions. Then there's the EA's who focus on management, process, and profits, and end up capturing a safe but stagnant part of the gaming market.
What the industry really needs is a way to keep development costs down, both technically and from a process standpoint. We need cheaper art development, better middleware, efficient distribution methods, and more. Things like Steam are highly contentious, but there's a chance that this changes the environment considerably. Looking at the new Elevation [gamespot.com] partnership, it looks like more development houses may become self-funded.
For the winners, there's some pretty huge profits to be made. The gaming industry will continue to mature and expand. The hard part will be keeping it fresh and lively, and not stagnating into a series of endless sequels with better graphics.
Re:Still a young industry (Score:2)
I suggest that games be made shorter. Quality over quantity, let online play, mod-makers, or cheap unlockables extend the life of the game beyond 5-10 hours, or sell expansion packs/sequels only after making a profit from the earlier game. That assumes more levels and art and so on actually costs a lot more- if a game is half as long but only 10% cheaper to produce then that's a poor tradeoff.
The hard part will be keeping it fresh and
Re:Still a young industry (Score:1)
Re:Still a young industry (Score:1)
That's a lot. (Score:3, Insightful)
Maybe I'm not the target demographic here, but I know I didn't buy 80 games this year. And I won't have bought 80 by Christmas either. I consider myself a gamer. I play a lot. I own all three consoles and all but one current portable (the PSP). I bought, maybe, 20 games this year.
As long as I'm not hurting for a good game to play, I don't care how many succeed.
This number would mean a lot more if we knew which games were counted as successes (for example, it would make me sad if none of the games I bought were counted as successes), but I think it would stand to reason that most of what gamers like (quality titles in all genres) is what's selling. And what's selling is probably what's counted as a success.
Re:That's a lot. (Score:1)
Yes but if game companies aren't making a profit then it could potentionally make it harder and harder for for the companies to make good games. With money from profits game companies could pay for better talent to make better games and spend more money on technologies that could help to make a good game too. Money is no guarantee for a good game as is proven time and time again with some great, independent games that have be
Re:That's a lot. (Score:2)
Which games are succeeding? I would think that the games that are succeeding are the games that are selling. I would also think that the games that are selling are the games that people (myself included) want to play.
If the games that people want to play are the ones that are succeeding, economics is working properly. We'll get more of what's good and less of what's bad.
Innovation != good. Fresh IP != good. Mario games sell because they're good. Zelda games sell because they
Re:That's a lot. (Score:2)
Re:That's a lot. (Score:2)
With that out of the way, are all of those games considered failures? Star Tropics and System Shock both got sequels (I know I enjoyed both of those games). Psychonauts got more critical acclaim than any other platformer in recent memory (I haven't played it yet, but it's on my list). Was Grim Fandango a failure? I loved that game to death. I'm unfami
Re:That's a lot. (Score:2)
I must say that GENERALLY the games I end up really liking are fairly popular, and fairly successful. Burnout, Halo, Medal of Honor, Splinter Cell...
Some people (on Slashdot) would ridicule my choice of games, saying that they are crappy, dumbed down, etc. etc. Which is strange, because I, and a good number of other people, feel that these are good game
Re:That's a lot. (Score:1)
Perhaps -- but what about the people who aren't buying games because there aren't any games that they want to play? The games that are selling aren't necessarily the best possible games.
Re:That's a lot. (Score:2)
1. There are older games that these people like to play.
If this is the case, maybe they aren't looking hard enough. How long has it been since these people bought a game? Are there any other factors (I don't own console X, and that game's an exclusive)? Other than that, I'm not sure, but at least they aren't buying games that they don't want.
2. They just don't like games. You can't force people to buy what they don't want. You can make the greatest FPS ever, but you're going to
Used games (Score:1)
In terms of the sales metric, your purchase is as much a success as someone down the street who deeply enjoys the game.
A game that the end user does not like will end up sold used, which competes with new sales.
Re:That's a lot. (Score:2)
The article says...no wait the summary...no wait, even the title states that only 80 games a year will succeed. It doesn't say "Gamers buy 80 games a year". You are aware, I hope, that people have different tastes than you do. This being the case, some games would be successful that you would not be interested in. And other people are able to purchase games that
Time to share? (Score:1)
The more code, graphics and sound that's available freely then the lower the development costs of the games. As a side note more games should be created as the entry bar is lowered but this will likely never happen as no company tends to willingly help the competition. But a man I can dream, a man can dream...
This is why I'm looking forward to the Revolution! (Score:4, Interesting)
Sure, there will be a lot of games for the revolution that won't turn a profit, but with significantly lower development costs, there will also be a greater number of successes. With the revolution, hopefully designers will be rewarded with profits for good gameplay in whatever niche they are aiming for, rather than making a good game that fails because they had to spend way too much money to have it look pretty for the average consumer.
Re:This is why I'm looking forward to the Revoluti (Score:1)
Here's another way to look at your argument. Because the PS3 will cost so much more to develop games for, only developers who are willing to put in the investment will make games. These games will be better because of the commitment to excellence these developers will have to make. With the Revolution, the entry for development is much easier and
Re:This is why I'm looking forward to the Revoluti (Score:2)
Why always high budgets? (Score:4, Interesting)
Mostly I just think it's sad to see the videogame industry spiral into the same bland mire as much of the movie industry--avoiding risk and innovation, pumping huge budgets into a handful of games on the premise that a few will have huge sale numbers and hopefully keep the money flowing in at least as fast as it's bleeding away.
Re:Why always high budgets? (Score:2)
I'm guessing that since you basically have to license your games with the console manufacturer, you're likely to get a lot of pressure from them to include all the eye candy that can be crammed in there. While gameplay is certainly the most important piece of the puzzle, you can be darn sure that MS doesn't want some crappy looking screenshots from an Xbox360 game p
Re:Why always high budgets? (Score:1)
Hell, Snood is a hideously ugly game, but the guy who wrote it has done very well with it because the gameplay was so addicting.
Snood is a clone of Taito's Puzzle Bobble aka Bust-A-Move. It did well because it was on the PC, meaning unlike with a console game, people could play it at work.
Re:Why always high budgets? (Score:2)
80? Hah! (Score:1)
- The Female Game Developer, quite used to people pretending I don't exist
Re:80? Hah! (Score:1)
I don't quite agree... (Score:2, Interesting)
I guess in this sense, the gaming industry once again parallels the movie industry. You end up with a small pool of mega-studios producing the blockbusters each year while an ocean of indies, hobbyists, and wannabes fill the niche markets.
Problems with mobile phone games (Score:1)
there will be plenty of mobile phone and web-based games (even more than there are now) that are produced with meagre sums and turn a reasonable profit.
Two problems with mobile phone games:
Only? (Score:4, Interesting)
If the game industry can "only" put out 80 successful games a year and I only play 12-24 I will remain one happy gamer. Heck I may even pick up 1 or 2 unsuccessful games.
I wonder how many "break-even" games they make a year?
Re:Only? (Score:1)
That all depends on your definition of "really successful". In terms of this article, "really successful" means turning a profit. It doesn't take a big stretch of the imagination to see that the music industry makes a large chunk of money spread out over a number of different albums. In terms of "big hits", I would guess that the gaming industry has a much higher percentage of successful games than the music industry.
Of course, most s
Hah I'll make 2-4 this year alone (Score:5, Interesting)
The big boys are suffering from being too big. They spend all this money to keep up with the Jones's throwing more and more tech into the same boring games over and over again. And because it costs so much to produce all that content, you end up with a never ending stream of bugs and patches, and support costs. At somepoint the whole structure collapses under its own weight, and ceases to be fun.
The last two games I've played for fun were Black & White 2 and Darwinia... I terms of pacing, game play, and interface the games tried to do the same thing, but Darwinia actually did it right. Both had clunky interface flaws, but Darwinia's interface suffered only from its intentional quirkiness (a nod to real world OS process management) while B&W2's suffered from intentional crippling (buying broken gesture support, poor palette layout, etc).
Like indy film to hollywood, there is still hope for games.
the little guy
Re:Hah I'll make 2-4 this year alone (Score:2)
Link? I'm always looking for fun, little PC games.
Oasis [oasisgame.com] is the last one I found.
Re:Hah I'll make 2-4 this year alone (Score:1)
Re:Hah I'll make 2-4 this year alone (Score:2)
Yeah, that's what I was thinking — "Hey, dude, you missed a chance for some self promotion!"
I did stumble across this guy [livejournal.com] recently, though. Although I haven't had the time to try any of his games yet...
Re:Hah I'll make 2-4 this year alone (Score:1)
Payment? (Score:1)
I have my own little indie game company, and I'll produce 2-4 profitable games this year alone
How do you get the major retail chains (Wal-Mart, Best Buy, etc) to even look at you? A lot of the target market for PC games is minors who are incapable of purchasing things online because even if they have cash in hand to buy the game and have it shipped, the parents won't let them use their debit card.
Solution=Increase profit margins (Score:1)
Re:Hmm... (Score:1, Troll)
You are giving EA more money to buy BIGGER HANDCUFFS to slap on the video game industry. Soon they'll have license to every war, every gun, every car. And every game will have to be published under EA.
Re:Hmm... (Score:1)
profitable != fun (Score:2, Interesting)
And people wonder why Nintendo ditched HD... (Score:3, Interesting)
There number one goal is value: for the players *and* the developers. By keeping costs down, smaller companies can afford to develop for them, and maybe even *gasp* take some risks. I'm looking forward to their library. Having smaller companies willing to take a risk and make a genre bending game can only help you, but if the chance of success is so small and development costs are so high, many companies may not be willing to give it a go.
A big misconception about HD, though, is that by supporting it games will look good. This is patently false. The revolution will be able to output at DVD level qualities. I've yet to see a game that convinces me I'm watchign a DVD and not playing a game. All HD does, is output more pixels so you can see your crap visuals more sharply. A theoretical game for some system in the future that outputs at 480p and convinces me I'm just watching a movie on my home DVD player will blow away your average viewing public more than Call of Duty 2 for the 360 does. I'm sure the Revolution would have an easy time outputting a big red square at HD resolution, but that's not the point. With the hardware we've got, we haven't even maxed out the visuals on standard definition!
So, keep it cheap, and focus on making convincing textures, lighting, and physics (the things that really matter), and not just spewing out more pixels. The Revolution is where it's at!
Re: (Score:2)
Re:And people wonder why Nintendo ditched HD... (Score:2)
Bad news for Sony? (Score:2)
The performance of the PS3 absolutely relies on the apps being multithreaded (Xbox2 also needs it but it will survive if they aren't, a lot of first gen Xbox2 games aren't multithreaded apparently) - this is going to require a higher level of complexity for software which will drive up costs a lot. Xbox2 games use DirectX!
Now it doesn't take a mathematician to work out that
Games can afford to make a small net loss. (Score:1)
These intangibles are worth quite a lot ot
Not mentioned in the article (Score:2)
Still cheap compared with others (Score:1)
This is huge actually. (Score:1)