I don't understand Capcom - how are RE6 sales "disappointing"?

#11Steve_Teddie(Topic Creator)Posted 2/4/2013 11:15:12 PM
From: Dark Symphony | #010
Let's say they only keep 45% - that's still 135 mil. Even assuming the game's budget was 100 mil, that's still a tremendous profit, with plenty of time for more sales.

If you look at that statement above you can see a few problems. First, "let's say" isn't a way to get a foothold in a conversation about business performance and why a game would be considered "disappointing." Second, "assuming" a budget doesn't give you much ground to work with either.

When you create a product to sell you don't get to "keep a percentage." You have a budget. You have your expenditures. Anything short of those numbers is a loss.

If you make $20 off a product that cost you $25 to create there is no percentage to take from that.

Let's consider some other things...

Sales projections play a big role in how much money will be budgeted for a game. They play a big role in stock holder satisfaction. And it's not simply about making a "profit" but making a good one. Let's look at some examples.

A 10 million dollar budget yields 2 million in profits. A 20 million dollar budget yields 2 million in profits. Which one is better? The first one. Why? They still made the same amount of money, right? Well, the second one likely had higher projections. Because they were going through more resources to create the product. They were freezing up more assets to create the product. They were taking bigger risks to create the product.

Now stockholders see a company that takes risks that don't lead to returns. Decision makers see that they could have had the same success with half the budget and lament that they didn't just make two 10 million dollar games.

You spend more money because you want to move a franchise or IP forward into higher recognition with greater market share and the ability to generate more money. If you run twice as fast for twice as long and you don't get any further than you did before would you be happy with those results?

Thanks for talking out of your ass, posting some kindergarten business stuff, and doing nothing to contribute to the conversation.
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#12notrandomPosted 2/4/2013 11:52:27 PM
Capcom has very high standards when it comes to sales and nothing ever seems to be good enough for them.
UMvC3 was disappointing to them in sales despite the fact it was a cheap cash in released not even a year later from the original and it still sold more copies than most games usually do it.
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Say no to EA and Ubisoft's online passes. Say no to Capcom and Activision's scummy DLC ways. Say no to NISA's terrible and unfaithful localizations.
#13k7lifePosted 2/5/2013 12:52:45 AM
notrandom posted...
Capcom has very high standards when it comes to sales and nothing ever seems to be good enough for them.
UMvC3 was disappointing to them in sales despite the fact it was a cheap cash in released not even a year later from the original and it still sold more copies than most games usually do it.


Actually with UMVC3, they are content with the sales now to the point that they are willing to talking to marvel for more content to added to the game.
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Gamers are so angry these days, they should chill out or something.