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'Less than 3 out of 10 games recover costs,' says EIF boss


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#1 PS3Scene

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Posted 12 August 2008 - 05:04 AM

'Less than 3 out of 10 games recover costs,' says EIF boss
Posted by XanTium | 12-8-2008 0:04 EST

 
From gamesindustry.biz:


Edinburgh Interactive Festival chairman Chris Deering has warned the games industry that it must look for new revenue sources as development costs rise and software sales fall.

"My guess and analysis shows that less than 3 out of 10 games recover their development and marketing costs with boxed goods sales," said Deering. "So what's going to have to happen? Creative use of hybrid online and offline advertising revenues, online offline transactions with consumers - these business models must be explored."

According to Deering, the big trends of the next decade will include the growth of internet-served video, the expansion of fanbases into new communities, increased remote data storage and the emergence of global virtual currencies. He also predicted the growth of mobile social networks, TV, GPS and advertising - all of which present the games industry with new opportunities to create games and seek out revenues.


Full Story: gamesindustry.biz






#2 twistedsymphony

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Posted 12 August 2008 - 03:03 PM

Interesting how "game sales are down" yet industry growth is up year after year...

why?

it's obvious that MORE games are being made so where on a given week gamers 2 generations ago had their choice of 2 new games now they're looking at 5 or 6.


what's the solution?

STOP MAKING GARBAGE

seriously, if you make a GOOD game and you market it well then you'll make a profit.

If you make some generic garbage designed off what your research department has determined is the right formula for a "popular" game and then hire crappy developers to make it as cheap as possible you'll wind up with another title that no one cares about headed for the bargain bin at lightning speed.

Games like GTA and Gears aren't just top sellers because they're marketed well and give gamers what they want.

they're top sellers because there are creative forces behind them that are creating new and interesting concepts... GTA style games weren't popular until GTA MADE THEM POPULAR... you can't design a knock off and expect it to do as well.

Talking corporate heads need to rely on the instincts of the creative talent under their employ, concentrate on making quality over quantity...

the two ways to get ahead are to either be the FIRST or the BEST, and unless you're innovating you'll never achieve either.

#3 m_hael

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Posted 12 August 2008 - 04:38 PM

There is a simple fact that you're missing Twisted.... "people" are fickle.

there are countless examples of GREAT games that despite having everything you mention... completely failed at retail.

there are also MANY examples of BAD games succeeding massively at retail for no reason that anyone could see.

the shotgun method works... so big devs use it...

#4 twistedsymphony

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Posted 12 August 2008 - 09:37 PM

QUOTE(m_hael @ Aug 12 2008, 12:14 PM) View Post

There is a simple fact that you're missing Twisted.... "people" are fickle.


that's kind of my point...

There are a lot of games that have been made targeted at "what people want" and fail miserably... because people don't know what they want... they might THINK they know what they want but most of the time... they really don't.

This is why I think more attention needs to be paid to the creative talent pushing the game design rather than market research.


I think the only time you have a game that is really creative and original that fails it's because of one of two problems.

1. The marketing wasn't there... either the gamer that would be interested in the game weren't really made aware of it, and weren't hyped about it, or it fell under the shadow of a more established franchise garnering the same audience at the same time... either way great idea that never made it because of poor or misdirected marketing.

Even game concepts that might not be hot at the time (ie: a middle eastern assassin, like Assassin's Creed) can be made hot and desirable if the marketing is done right.

2. The art style was disagreeable with the audience... games like Psychonauts... great game, had mediocre marketing but it ultimately tanked because of the art style. I'm convinced that Crackdown would have suffered the same fate for the same reason had it not been used as a mechanism for the Halo 3 beta.

people are picky about the art style in games... Most of the time if it looks too "childish" or "last gen" it could be the death of the game unless people get some good seat time with it and warm up to it... look at all the flack the Zelda series got when it went cell shaded... and that's probably one of the most established franchises in the industry. Alternatively if a game doesn't look as sharp as it's competitors or has other graphical problems it turns people off a lot. Not every game needs to be jaw dropping but there is a certain level of quality that people expect and it's going up all the time.


People will come for the graphics, but they'll stay for the innovation... but no one is buying anything unless it's marketed the right amount, in the right way, and to the right people.


I know WHY the big dev houses take the "shotgun" approach, but you can't just throw crap at the wall waiting for something to stick and then turn around and complain that only 3 of every 10 shots is turning a profit. rolleyes.gif

Edited by twistedsymphony, 12 August 2008 - 09:39 PM.





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