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Game creation has increased in many ways however their prices largely have not so things will have to change eventually.
But haven't the sales also skyrocketed?
I mean, didn't games like the new GTA earn more than the entire Star Wars franchise from it's birth til now?
I remember when sales over 10.000 was good, now it's not even okay for some companies if the sales are in the millions. :/
And it's not as if they lose money either from that.
https://www.juegostudio.com/blog/everything-you-need-to-know-about-aaa-game-development-costs
Costs are a big factor. The more games cost to make, the more they need to sell or sell at a higher price.
GTAV is an exception when it comes to the profits a studio makes from a single game, not the rule.
"Frequently, a rough cost of development for AAA games lies somewhere between $60-80 million as per most game developers."
So, if they sell 1 million copies at $60 each (excluding taxes, bank transaction fees and other deductions) then they may break even. If they sell 1 million at $70 each, the may break even and have a bit of profit to start making a new game.
Also the profit of aaa games is not meant for the next game only, but for the shareholders please.
Thats why more money is "needed"
And isn't the blog post you linked doing the same? ;P
And aren't AAA selling more than 2 million copies overall? I don't know, it feels like there is no reason to increase the prices as I've not seen any figures in the red for any AAA games so far. Maybe you have? :)
Well no other reason than "because we want more money" that is. :P
Doing what the same? I linked to a source about the cost to make games.
No, they are not all ways selling that many copies.
That on-line resident evil game lost the developer/publisher money. There are many others that have as well. Some were on-line ones that shut down due to lack of sales and demand.
You think Anthem is making money?
Here are 15 that flopped and didn't even make back the cost of developing.
https://gamingbolt.com/15-most-expensive-games-that-flopped
And each failure causes AAA developers to need to increase the price, in order to make up for those failures, unless they get lucky and their next game is a huge success. If they can't pay back that $60 million to make a game, then the debt carries over until it can be paid back.
https://store.steampowered.com/app/390340/Umbrella_Corps/
I would rather say this game lost the people money who bought it.
Ya, everyone lost on that one.
If they want to make more money they need to tone down the advertising.
They already save a bunch by selling digital at the same price as physical copies which is absurd.
I rarely buy a game at launch for $60 so $70 is a no go.
Less advertising equates to fewer sales, sadly. The market is huge, so if they want to get noticed, then they need to be known. This holds for any game.
The issue is very prevalent for Indi games as there is little to no advertising for them. The game Amung Us, for example, was released in 2018, yet only now has blown up. With the amount AAA developer put into their games, they can't wait that long for a game to sell well, so marketing in needed to sell more copies.
Aquanox Deep Descent we just released yesterday, yet not many have purchased it or are playing it. One reason is that it was never advertised beyond the popular coming soon section. It didn't even last for then a bit on the popular releases. If they had an advertising campaign, then it may very well have been difference. It really can make a difference between a game being a commercial success vs a loss for the company.
I rarely buy on release. My general rule is $20 for AAA games (if all DLC is released and in one package) and $10 for Indi titles. It takes a lot of interest in a specific game for me to spend more then that. However, this isn't about my or your personal ideals when it comes to what we are willing to spend, it is about how the market, development and advertising works.
AAA games, using the latest tech and hardware, will always demand a high price to make... and that price is going up, not down. If all games held at a specific level, then you would see complaints about how games are not progressing and starting to look the same, so the industry is forced to continue to progress... and eventually pass on the costs.
10,000 was good back in the NES days. , 10,000 is good when you're a 5 man team working out of a garage. Its not good when you're a bigger than that, then your costs have to add up. You have rent to pay on office space, and you ghave teams of people to pay. Look up how much a sound designer or, programmer earns a month. Then factor that games take a few years to develop.
They actually don't and yes advertising costs have gone up? DO you know why? Because the competition has grown exponentially as well. SO you have to push you product that much harder just to get people's attention.
And ergo no one hears about their game and the money goes to the big brain that had a multiplatform advertising blitz.
And here's the kicker. They're not saving as much as you think. because the manufacturing was a rather low end for the costs ever since the cd's became a thing. The real benefit of distribution is that it offers an inherent JIT distribution model.
Will games go up to $70. probably. That or you're gonna have to get used to more aggressive DLC and mtx. The thing is. Just as now most games don't realease for $$60, neither will most games retail for $70 it'll just be for those yuber big budget golden pixel fest AAA games. Which account for a minority of the games released. and more importantly, those prices drop over time.
I rarely buy a game at launch for $60 so $70 is a no go. [/quote]
Long answer, reason why game cost goes up, is due to number of things.
- Inflation <--- Pretty obvious, yes it's a real thing, people ignore this idk why, it's not alarming problem, but it's a never ending growing problem, you see changes every 10-20 years, and you look back saying WOW, that a bit of change.
- Budgeting problems such as with publishers they splashing on things that they shouldn't have, like buying things that were over price, or wasn't needed, or even paying too much for something such as marketing that either pocket some of the money, or burn it badly where you don't the results you expected. For indie devs there good number of them not doing good budgeting at all, and assume things without thinking about it, or putting any real effort, or paying attention to details on somethings that can bite them in the end if not careful. There more in this subject as well, but just small part of it.
- Getting, or buying the things you need, as well some things raise their prices for their own reasons as well even if the reasons are legit or not, such as needing certain programs, equipment, and etc...
- Sales/lease/rental/services abuses this is something no one really talk about such as if you're indie dev, and want to have a place where everyone meet up to work as a group, you need a place, and most often people rent, or buy places for those reasosn instead of using their own home, if you pay any attention, no i mean really pay any attention, you will see in some cities some people abuse marketing prices where it just cost more causing people to seek lower prices that they try to get fill, or bought out but even so they raise prices on those as well, there a lot in this subject not exactly related to gaming, but there a lot in this area. People that got places back in 90s, and early 2000s are basically golden, while 2010s and up prices start jumping up more, and more every other year. Now with this whole pandemic, in few cities, prices went up stupidly on trying to sell properties, if you follow the New York you see example on this. Again a lot to go into this subject but I end it here for now.
- Marketing issues such as more games comes out, the more ad space becomes a problem where people fight for space driving the cost up on those ad places, such as I want my ad on all these videos for youtube, I want my ad all over twitch, and so on, example where you see a car ad even though you only wanted to watch your fav streamer, or blogger, and don't want a new car, same with Epic pushing their Fortnite ads all over the place, same with riot that push their newest game all over the place to hype it up, and etc, it's one of the common PR things publishers do as to try to keep hooking people by making overly hype videos, ads, and so on to keep their products relevant to the people so may encourage them to checking their product, or even get a hold of it. Publishers may fight for ad space with other publishers, becoming a no go for indie devs, so they have to come up with ways to working on their own marketing, without having to compete with publishers. YES there are ways, but I don't want to go into this, you learn more by checking out videos from Ask GameDev youtube channel.
- Staff employment, Freelancers, and etc, this where some of the cost may flex such as needing someone with the skills, knowledge, and etc, for indie devs payment can be flex or fixed, for publishers it higher payment area depending on the person traits, and etc... Also part of the budgeting planning but something to note as well when picking staff, and etc...
- Investors, if you have someone, or publisher backing you, they may expect certain results, or higher for their ROI, some may just break even, or some goes ahead of the game, it depends on many factors on how well the game sold, how much profit was made, and depends on the X amount of time.
- Party too hard, funny I know but there be a case where indie devs, or publisher landed on something that won them the lotto that bring in a lot of funds, but this depends on number of things if this is a continuous working on the game for updates, new content, and such, or working on next project right after, in some cases few indie devs, or etc party too hard where they spend too much of the money they earn only to not get ROI as they thought they would on their game, or next game because they forgot the basics, or didn't plan the possibilities that could happen if suddenly lost the playerbase, or that the game end up not doing so well.
There more I can list, but that a lot to cover as well what can cause prices to raise across number of things.
I do recommend checking out Ask GameDevs they make really great videos, worth checking out as they provide a lot of info that you may not even think about, and may even help you understand couple things as well.
https://www.youtube.com/channel/UCd_lJ4zSp9wZDNyeKCWUstgUCd_lJ4zSp9wZDNyeKCWUstg
Well, the blog post you linked talked about how expensive games were to create but they used the largest examples possible, the new GTA, the one I used aswell for it. A lot of AAA games doesn't have that large of a team as those games mentioned. That was why I said what I said at the beginning.
And I didn't say all AAA games sold well but many of them do. Just as I used the example of the GTA game selling extremely well, so are some example mentioned that sell extremely poorly. But, I believe the overall sales are in the black.
I also don't believe, personally, that just because some of your projects "fail" that you need to permanently increase all game prices after that. And I don't really trust the "source" you used, I don't know, when you use yourself as a source as that person did I just can't take it too seriously. :P
I wonder if there are plain figures to see how games sell and not examples, would be easier to know one way or another which one is true? :/
EDIT: I just checked a blog post randomly and it showed Antham being one of the best selling games of 2019! :O
EDIT 2: Seems like they got their money back with Anthem and then some aswell but the information I found was really not that plain to see. So I don't know about it being an example of needing to increase the cost of games. :P
First part:
No but it was an example how insanely much money you could earn. Just as most AAA games sell extremelly well, way above what they need to earn your money back. In my opinion, as I don't have access to that much info. :P
Second part:
Exactly. When before you earned money with 10.000 copies sold with a 5 man team, you now earn money with 2 million copies sold with a 200 person team. :)
EDIT: It feels like it's more of a; "We don't NEED to increase the price but, instead, we WANT to increase the price of games.". And to me they are really, really different things were one is clearly not okay, in my book anyway! :P
Sorry for all the edits I made for the two people I answered. :(
LAST EDIT I PROMISE!
I just came up with such a "original" thing that I just had to include it:
"You should not earn money with a bad product.". What do you people think? Is it a good idea?