Economics of Video Games Make No Sense to Me

#51rockman11_zPosted 2/15/2013 10:43:50 AM
Pesmerga255 posted...
rockman11_z posted...
Pesmerga255 posted...
QCTeamkill posted...
Thankfully the rumors indicate the next gen systems will have some kind of DRM.


Seriously?


Only for the new Xbox. Only a rumor though.


I was mainly saying "Serioulsy?" because he likes the idea of DRM tagging.


Oh...^_^. ... Pardon me.

But yeah, why the hell is this guy thankful for DRM on the next consoles?
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Previous rank 5 all time in the world Capture the Leader/Guardian Gears of War 3. Official fiancee of Naoto Shirogane( it's canon too)
#52tehdudPosted 2/15/2013 12:06:50 PM
Believe it or not there are dumb consumers out there who put the interest of the company they fanboy for before their own
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CAPCOM = Conning All Players Cash Over Morals
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#53rockman11_zPosted 2/15/2013 12:18:37 PM
tehdud posted...
Believe it or not there are dumb consumers out there who put the interest of the company they fanboy for before their own


So true....-_-
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Previous rank 5 all time in the world Capture the Leader/Guardian Gears of War 3. Official fiancee of Naoto Shirogane( it's canon too)
#54vgundamPosted 2/15/2013 12:24:45 PM
I think the better technology is ruining games. Instead of spending time making games with depth, content, and testing bugs, the developers have to spend money on voice acting for every line of dialogue and spend more time making sure every graphical element is as realistic as can be.

Every game has to look like a Hollywood film to even be considered decent. Its ruining games.
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It's "I COULDN'T care less" PLEASE GET IT RIGHT PEOPLE.
#55QCTeamkillPosted 2/15/2013 12:44:32 PM
rockman11_z posted...
Pesmerga255 posted...
rockman11_z posted...
Pesmerga255 posted...
QCTeamkill posted...
Thankfully the rumors indicate the next gen systems will have some kind of DRM.


Seriously?


Only for the new Xbox. Only a rumor though.


I was mainly saying "Serioulsy?" because he likes the idea of DRM tagging.


Oh...^_^. ... Pardon me.

But yeah, why the hell is this guy thankful for DRM on the next consoles?


I've been freelance software developer in the past (gawd I miss that Y2K booming economy). I buy all my games new when the option is available. You guys don't get it, it's okay you probably never had to develop, market and sell softwares you made.
#56SilentS89Posted 2/15/2013 12:50:31 PM
tehdud posted...
Believe it or not there are consumers out there who put the interest of the company they fanboy for before their own


We call them "pros" on this board.
#57rockman11_zPosted 2/15/2013 12:58:27 PM
So it's ok for this rumored DRM to have games that require Internet connection to play? Is that what you want?
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Previous rank 5 all time in the world Capture the Leader/Guardian Gears of War 3. Official fiancee of Naoto Shirogane( it's canon too)
#58QCTeamkillPosted 2/15/2013 1:04:34 PM
rockman11_z posted...
So it's ok for this rumored DRM to have games that require Internet connection to play? Is that what you want?


I don't know yet how it's going to work, Sony patented a way for consoles to DRM some time ago. For all I know it could be a chip coming with the game, some USB dongle or such.
#59rockman11_zPosted 2/15/2013 1:07:54 PM
QCTeamkill posted...
rockman11_z posted...
So it's ok for this rumored DRM to have games that require Internet connection to play? Is that what you want?


I don't know yet how it's going to work, Sony patented a way for consoles to DRM some time ago. For all I know it could be a chip coming with the game, some USB dongle or such.


DRM is not friendly. I hate always online games BS and I doubt MS or Sony are stupid to ban used games.
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Previous rank 5 all time in the world Capture the Leader/Guardian Gears of War 3. Official fiancee of Naoto Shirogane( it's canon too)
#60KazamaKojinraiPosted 2/15/2013 1:31:55 PM
Well according to Capcom, they expect this game to sell 1.2 million units, which is far below what they were originally hoping (Devil May Cry 4 sold 2.7 million units apparently). This is because the game-market peaked in 2009; after that Modern Warfare 2, the Obama-depression, and used game sales at GameStop really hurt game sales.

I've heard that after licensing fees, retailer markup, and publishing costs, publishers take in $35 in revenue for a $60 game, so that's $42 million for Capcom (maybe less if they have to discount the game's sale price to move 1.2 million units). The game was developed by a team of 90-people over a 3-year period, and I'm guessing they were paid $55k per year each in salary (on average), so that's $14.9 million in labor costs, plus office-space, office-equipment, voice-actors, motion-capture, facial-capture, software license, play-testers, etc. the total probably comes to $26 million.

I'd guess Capcom probably spent an additional $5 million on marketing and administration, so that still nets Ninja Theory and Capcom a profit of $11 million--far less than they had been hoping for, but still not a loss. Though when you consider that the government is going to confiscate 35% of that profit in taxes you begin to wonder why game-publishers even bother to make games anymore. The industry really needs to be turned around.
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SSF4 clan: Team SIN
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