Publishers employ thousands of developers, and they are virtually the only source of funding for console developers. The majority of contracts will include sales based royalties paid by the pub to the dev. Is this all news to you? Because I thought it was common knowledge.
Royalties for game unit sales paid by publishers to development companies (that they own) are by no means the rule of thumb in the video game industry. It varies by publisher, developer, game and contract.
Sometimes there is a royalty for per game sold, sometimes there is a bonus for a certain level of sales, and sometimes there is simply the fact that the development house won't be dissolved and the programmers all fired.
For example, Activision owned Bizarre Creations. Activision had a contract with BC that if sales reached a certain level on Blur, a $40 million bonus would kick in. However, no such deal was in place for Blood Stone, BC's last game released six months after Blur. Both games sold poorly, and the end result was Activision giving out over 200 pink slips to everyone at BC.
Cue music: "The more you know..."
Yeah, I know all that. Devs working for pubs depend on publisher income for their continued salary and bonuses (usually capped and based on a combination of performance and sales, i.e. not a direct % of sales), and stock options/grants (which will likely go up if company profits are growing). All of these things are hurt by used sales. Studios contracted by publishers to make games will be paid up front via milestones and probably also have some back end in royalties, payable after costs are recouped. They too are hurt by used sales. And as I said publishers are virtually the only source of funding, so if their income and profits are squeezed of course it has a knock on effect. --- My mad face and my happy face are the same.
Closing 250 more stores in 2013. Yep, they know what's up and should be giving advice. --- The writing was on the wall with Bioware the minute you could completely void all of your decisions with one choice in KOTOR.
lol I'm so glad my life does not depend on "good deals" I happen to think that a decent game 10hrs+ for $60 is a good deal already. Just to go out on the weekend for a couple of hours can easily cost the same or more...here we are talking about 10hrs+ of enjoyment...not maybe enjoyment
I'm not a cheap guy, I figure what the value is to me, and then decide if the price is worth it..I would hope everyone works like this
this is the difference between casual gamers and hardcore...
if you think the value of games is not worth their price and you can better occupy your time and money in better ways...cool..you casually game..no big deal.
Gaming is central to my life, I game EVERYDAY...I am anticipating Crysis 3 right now...I will be there tuesday after work to pick it up...while you wait months for a good deal, I'll be enjoying the campaign in glorious 3D, and bout time you pick it up...I'll be enjoying watch dogs on a next gen system...and you will have missed a fairly decent Multiplayer game because noone will be on by that time.
Shiney bells and whistles new features gameplay possibilities mean a lot to hardcore gamers...if it doesn't mean a lot to you it is no crime...you are just casual --- The Closest You'll Ever Come to Afghanistan in Gaming... http://youtu.be/GIhqUiQJt6Q