Ponn01 said:
That's why I said awhile back that I was ok with smaller developers being taken up by bigger ones. People were having a tizzy fit over it but think about it. With rising costs most of these people will never stand a chance. At least with bigger developers they can pool their strenghts and they have a chance to run with an idea if it's really good as a cheaper developed game. And if it cuts down on the amount of mediocore games then so be it. I don't need a choice of 20 games a month to buy from, it can be cut down to 10 or 6. As long as theres a couple there I like that's great. I'm still asking for where this proof of decline in the industry is and still the closest we are getting is this "negligible" growth. At worst there may be a restructuring but videogames aren't going anywhere.
Just because a small dev gets inside a big dev doesnt mean that they will keep producing good games. Like what happened to Origin being devoured by EA, the lack od dev time forced on by EA literally killed them as a company. Next gen, to make sure the costs are covered we will see more licensing of movies and the like for games.
And of the $50 you spend on games only $20 goes into paying dev costs. The other $30 goes to retailer mark ups, freight and console licensing. So next gethey may earn 50% more per game to pay off dev costs. But that is still not enough. If we assume that dev copsts increase by 500%(i think i made a mistake in my earlier post) the dev is going to be in trouble.
Lets put it this way.
This gen an average game costs 5 million to make. So to break even they have to sell 250 000 units worldwide when they get in return $20 from that $50 you spend.
Next gen an average game costs 25 million to make. So to break even they have to sell 833 000 units worldwide to break even if they get $30 every $60 you spend on a game.
Unlike the hollywood industry where "small films" can survive, the game industry hasnt shown if it can do that too. MS is having a great attempt at it with XBLA. I guess we will have to wait and see if it pans out.