Just make smaller, more sustainable games that can turn a profit. Nintendo understand this.
AAA games used to need 2 to 3m full price sales to break even that's now about 8 to 12m. Basically the hits are subsiding the misses and they will be trying to leverage that ratio better.
Around the year 2000 a typical AAA game cost 1 to 4m to develop.
2023 onward this is regularly 200 to 300m
These figures don't include marketing.
The total "addressable market" i.e. the game buying audience has increased 2 to 3x in that period but development cost is 10 to 30x.
The most conservative of those figures that would make a game £133 today taking into account the development cost and the market size.
You cannot have a modest hit in that environment and be sustainable.
*I would also note that while the total addressable market is 2 to 3x bigger the dynamics have changed to. I don't have any hard facts on it so won't provide any numbers but I suspect the ratio of games to cod/FIFA/fortnite type owners had changed over the years so for most games the audience isn't even bigger as those newer audiences were never buying anything outside of that mainstream trio anyway.
I need to wait for the reviews and more info on this one. There is a very real chance this won't be the game people are expecting based on shifts at Rockstar and the more recent GTA online weak characters etc.
Comments 5
Re: Rumour: Xbox Still Evaluating Whether Project Helix Will Support Physical Discs
@themightyant keep in mind backwards compatible for games and backwards compatible for media are two different features.
Re: Rumour: Xbox Still Evaluating Whether Project Helix Will Support Physical Discs
Not confirmed but we are introducing a way to digitise your old discs... You know it's coming. Let's get real here.
Re: Marvel's Blade Reportedly In Danger As Xbox Considers Shutting Arkane Studios
Just make smaller, more sustainable games that can turn a profit. Nintendo understand this.
AAA games used to need 2 to 3m full price sales to break even that's now about 8 to 12m. Basically the hits are subsiding the misses and they will be trying to leverage that ratio better.
Re: Marvel's Blade Reportedly In Danger As Xbox Considers Shutting Arkane Studios
AAA has become largely unsustainable
Around the year 2000 a typical AAA game cost 1 to 4m to develop.
2023 onward this is regularly 200 to 300m
These figures don't include marketing.
The total "addressable market" i.e. the game buying audience has increased 2 to 3x in that period but development cost is 10 to 30x.
The most conservative of those figures that would make a game £133 today taking into account the development cost and the market size.
You cannot have a modest hit in that environment and be sustainable.
*I would also note that while the total addressable market is 2 to 3x bigger the dynamics have changed to. I don't have any hard facts on it so won't provide any numbers but I suspect the ratio of games to cod/FIFA/fortnite type owners had changed over the years so for most games the audience isn't even bigger as those newer audiences were never buying anything outside of that mainstream trio anyway.
Re: Poll: If You're Buying GTA 6, Are You Getting The Standard Or Ultimate Edition?
I need to wait for the reviews and more info on this one. There is a very real chance this won't be the game people are expecting based on shifts at Rockstar and the more recent GTA online weak characters etc.