Next-Gen Games: Non-Profitable

February 28th, 2007 by Paul in Articles, Business, PlayStation 3, Wii, Xbox360

A fresh report made by Screen Digest shows us that next generation games are non-profitable. By using survey data from major software publishers, the report provides an overview of third party attitudes to making games the new console platforms.
The new games for the new consoles uses a lot of resources and time, so the financial investments is insecure. It will take up to the year 2010 in order for publishers to make any profit on the games.

The report tells us that the strategy to make a game exclusive for one console is far more better than publishing a title to multiple consoles. Microsoft uses this strategy, as in games like Gears of Wars; the financial investments were good, because the game only was exclusively released for one console.

It’s worse for the independent game developers, who invest all their money in one game. The result can be a big financial mistake. The strategy today is to buy the independent game developers and only create games for one console.

Tags: Articles, Business, PlayStation 3, Wii, Xbox360


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14 Responses to “Next-Gen Games: Non-Profitable”

  1. monir Says:

    thats probably why there’s been less innovation in games in the past few years, same goes for films, i think they’re running out of real decent ideas and decide to just up graphics, or in films case have more explosions.

  2. Gibran Nawaz Says:

    monir, I’d say that there are still some developers who are making some nice games, like for portable systems. But I guess that is because there are lower development costs for projects like that.

  3. Jamie Violette Says:

    lol, id have to agree with you guys on this, the games that have been delivered have been, by far, not top notch, especially for a wrestling fan like myself, THQ has failed me over and over, with the same game, just with better graphics…

  4. Nasir Amin Says:

    Juiced was a good game, too bad it was not popular. I`ve tried S.T.A.L.K.E.R Closed Beta and I have to say that the game has potential. The game didn`t have any type of decent gameplay, the only positive thing was the graphics.
    Game developers has set graphic to top priority, meanwhile the gameplay is set into the shadows.

  5. Anthony Vasquez Says:

    that beacause most players are atracted to the graphics..they think since is has good graphics it most have good gameplay. And most of the time thats true..:D but then there are those who like better gameplay and have crappy graphics….

  6. Josh Says:

    “Far more better” *snort*

  7. Quartecks Says:

    It needs to be balanced.

  8. Evander Says:

    I agree with monir, the movie industry definately is losing ideas, just look at all the comics made into movies. And there certainly are too many sequels.

    Games should be balanced more, I agree. Some games its like they don’t put any effort into the story or plot, just as long as it looks pretty and you get to kill something, it’ll be fun.
    Thats why I like the GTA series, there are multiple things to do and isn’t restricted.

  9. Anuban Says:

    “Games should be balanced more, I agree. Some games its like they don’t put any effort into the story or plot, just as long as it looks pretty and you get to kill something, it’ll be fun”

    Did somebody say Gears of War? :)

  10. Eric Says:

    Wait so Gears of War isn’t making money?

  11. Nasir Amin Says:

    They do, I think that you are misunderstanding the whole case.

  12. Jim2k Says:

    Of course they’re making money, come on. If they didn’t make money, no one would make games in the first place.

  13. Nasir Amin Says:

    It has been awarded as Game of the Year of 2006, I know that their making hell lot of money.

  14. Monarky Says:

    Every game console generation has a bunch of crybaby developers, wetting Attends diapers over changes and having to learn something new. No different this time!

    It’s like dragging kids into the dentists, they can come up with some pretty dumb excuses. Then in the end they are all smiling with those sugarless lollipops or gag toys to shut’em up, while they’re walking out the door!

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