Next-Gen Games: Non-Profitable

February 28th, 2007 Posted in Articles, Business, PlayStation 3, Wii, Xbox 360 by Paul

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.

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