@coalhalo: I would have thought that was the full budget. Still though, not expensive when you compare it to the movie industry where in 2007 the average movie cost over 100m and games sell at 4 times more than dvd's.
@Mike Newlad: I'm sure that is just the game development budget. The last 3 games I've worked on ranged from $10-$25 million each, without marketing costs.
@Mike Newlad: Not just that, but the separation between big studio and independent output is significantly smaller in film than it is in video games. A handful of people can still craft a Hollywood level film that doesn't require special effects, something impossible in video games since the budget is directly proportionally to the development time and resources available to a game.
@Mike Newlad: Don't get confused here. The movie industry is HUGE. Millions upon millions of people around the world watch films. Most films make back their entire budget at the box office. Star Trek (2009) had a budget of $150 million, yet has made back double the investment before it even leaves general release. DVD sales don't factor in the huge cost dedicated to the making of the film in most cases, but towards the making of the DVD and the licence to watch the film.
Games don't have a box office, even at 4x the selling price of a DVD, games are just about breaking ahead as the most-grossing type of media each year. So they have to reap higher profit margins back on each licence they sell over films, which by the point it's on store shelves is pulling-in pure profit. Should be interesting to see development costs in 10 years time, though. We'll look back at $15 million and wonder how they survived...
@SSUK: A game like Killzone 2 would appeal to more people than bought it. The trouble is, it wouldn't appeal enough for them to spend £40. Movie's have a bigger audience but that problem could be because of the cost.
Also games are getting longer and longer which is slowing down game sales. The industry is pretty much hurting itself.
The following are games I want (that are to be released this side of Christmas)
FallOut 3 Ultimate Edition
Tiger Woods '10
FIFA '10/Pro Evo '10
SvR'10,
Assassins Creed 2
Splinter Cell Conviction
Heavy Rain
Uncharted 2
Shadow Complex
COD: MW2
Just Cause 2
Batman Arkum Asylum
Alpha Protocol
Dragon Age
Marvel Ultimate Alliance 2
It would cost me in the region of £600 to buy these games but I don't have that kind of money to throw down on games. I still haven't picked up inFamous or Prototype and I NEED them games.
I will buy Assassins Creed 2, FIFA, Smackdown and Splinter Cell on release day. The rest I will pick up when I see them in the 2 for £20 (or less) section. This means the developers won't see my money. What it also means is that I will have another 11 games for my backlog - so when GOW3, Tekken 6, FFXIII, GT5, DC Universe Online, Bioshock 2, The Agency, Modnation Racing, Ghost Recon, RUSE and what ever else that I want comes out I won't be buying them new either.
So from this point forth, most developers won't see a penny of my money which is a shame for them.
If Games were retailed at £10 I would be able to buy all those games for less money than I will be spending on the 4 games I mentioned. The developers would all get a slice of the pie and at that kind of price, I might be more tempted by games that aren't on the list. Even if new games were £20 it would be much better for developers as Game/GameStop wouldn't have as many people selling back their used games because in order for Game to make money on it, they would only be able to give £4-£5, more people would be able to afford the game, etc.
@ShadowXion: now by that you mean how much does it cost to unlock the multiplayer content? $5
For additional weapon skins $5
For extra maps $10
For a hard mode $5
For extra multiplayer skins $3's a pop
I can only imagine the horrific in-game advertisements we'll see to mitigate the MSRP of a 60 million dollar game. Imagine the next Army of Two energy feature. Imagine this video integrated into the next-next-gen Halo.
@Malfunktion v2: "Sir! Our travels through the Awesome Mountain Dew Radical Galaxy have led us to planet Cool Ranch Doritos, the previously undiscovered zingy Halo planet. We must take the Jeep(R) Warthogs to rendezvous with Master Chief at Starbucks. I need a delicious blended coffee drink!"
@Malfunktion v2:
It can be done tastefully--MGS4 gave Snake an iPod, which ended up having tons of downloadable songs and over a dozen in-game podcast walkthroughs. It felt very natural--even to the point that when you used it, it muffled the game's environment around him.
He also had Regain, an energy drink out of Japan that would restore his life.
There was a subtle one that the baddies used a certain brand of cell phone, but it was virtually non-existent, treated as nothing more than a device to use--unlike 24 where Sprint just forces Jack to waggle the brand in front of the camera.
Playboy was licenced for the nudie mags, a brand name noodle and a japanese sugar pack for healing items. Apple computers all over the place on Otocon's plane as well as a PS3, and snake uses the sixaxis to control MkII.
@excel_excel: I disagree. AB sold 13 million copies of COD4. Assuming a very conservative estimate of $30 charge to retailers per unit that still leaves $390 million in revenue for that title alone. Hollywood films with $200 million budgets would be considered a blockbuster success making $390 million in ticket sales.
I'm on the consumer end of the this debate. When I see a game like Modern Warfare 2 looking to make another $400 million sales, I don't want a game that only had $40 budget. I want it to have a $150 million budget. I want as much for my $60 as I can get.
@excel_excel: a better win-win situation would be to get newer, modern tools to vastly simplify map-creation.
Mocap was first, 3D scanning is next to become popular, right now it's semi-procedural fast editing/addition of detail to maps (starting basics are the FarCry2 editor, or iD's new stuff).
Also, bury down support for ShaderModel3.0, get access to individual MSAA/CSAA samples. This will simplify the content pipeline.
@excel_excel: I remember an interview with a game developer where he said that the reason to make games shorter was so that people would finish it faster and then have a reason to go buy whatever game comes next.
I'm sure that development costs can cause that as well, but there are certainly some planned decisions to make games the way they are. I also believe that not all DLC that comes out was made after the game was done and requires you to pay for it because the developer spent extra cash in order to make it. Sometimes companies are just greedy.
@excel_excel:
I for one want shorter games, even if the price to me, the consumer, doesn't decrease. I rarely want a game to go longer than 20-30 hours. That is well worth my $60.
I think money is just part of the reason. I also think that there are a lot of older folks who play games, who have families, jobs, etc., which takes away their time from playing games. That makes shorter games more important, I mean especially if the iPhone takes off as a platform. Shorter and shorter attention spans, battery life and ultimately bang for the developer's buck.
@AncientUnknown1: Thats the thing though. how can other games that don't have that bugdet compete?? They can't. Thats the reason so many games are coming out on portables, lower budget.
@Masterpain22: Agreed. Some companies are just greedy, Capcom's Resi 5 DLC was crap and so is their SFIV DLC. But GTA's DLC is fantastic and great value for money and you know something they've worked on
@AncientUnknown1: The problem is that such big budget games have far riskier prospects at profiting let alone recouping their costs, at least compared to a movie. Movies also have more avenues to profit, so it if bombs at theaters, it can still make money for years in DVD sales, rentals, merchandising, etc. Games are too dependent on launch day success to earn profits beyond a select few.
@somarix: The FarCry2 editor is a good example. Or the Unreal Tournament 3 mods, those were great, of course only mod heads could really get them done but the fact they could be brought to PS3 was something
@Kobun: Exactly. The same with music they can recoup there costs through tours, licensing their music for games and movies, and the usual CD/DVD and downloads
@excel_excel: I did not think that portal was too short for the $20 I spent on it, even in light of the fact that I spent more time playing the pictobits. Anything beyond 20 hours for me is, in general, a waste. I only put >10 hours into games I love.
I wouldn't complain about contentful games, except that if I can't see the ending (be it for lack of time or interest) I feel a bit gypped. So if that stuff is packed into replay value or whatever, then fine, but I don't want the main game to take >10-12 hours. If it's < 8 hours (e.g., HotD:O), then I prefer a $40 price tag.
@AncientUnknown1: I'm not sure if developers will see $30 per copy sold.
After all, they need to pay distributors, manufacturers, licensing to Sony/Microsoft, etc. A lot of hands touch that money on the way from the retail back to the developer and publisher.
I'm not saying that they're not profitable but probably not as profitable as you might think.
As for comparing to the movies, movies have earnings that reach way further than box office - after US and Int'l box office, Pay-per-view, commercial licensing, TV rights, DVD sales, etc the profit a movie makes is usually far more than just the box office take.
This article makes me wonder, why can't there exist the concept of a cinema game. Something like a high concept game except it lasts say the average length of a movie.
Not very unlike from sever FPSes that host about 60 or in the case of games like mag 256 people at a time. If it were possible to have a game that's not an MMO that has a finite story and each person experiences it from the viewpoint of a collective set of characters but together (the time frame probably would best be an hour I guess as it requires free time and people with time).
If that exists, and the game costs like the average ticket price then we might end up having games with high production values that perhaps can make money in the short term - it won't have the long tail DVD chain sales as in films unless it's a good concept and it can be broken down into a single player experience later.
A zombie game or an outbreak game would be a decent story to perhaps give this a test.
There of course would be overhead costs like hosting the game and managing it and making sure it runs fine. But larger groups of players, simultaneous experience and day 1 experience probably would have an interesting effect on say pirated games, the whole actual movie-game comparison and the interactive experience.
@WhatTheFrag: Thats a very interesting concept. By having advertising during the game that could offest other costs. Its just a case of how long the game would be 'owned' by the people who buy it. Would they be renting the game for the hour? If they did then what if the first day its screwed by server problems which plagues nearly every single online game these days before there eventually patched
@excel_excel: advertising would work. Probably a breaks based one - too much in game advertising can be jarring unless of course the game is set in the real world where you'd normally see such products and it doesn't seem out of place (but no Bionic Commando Nvidia ads that's just a bit jarring to many).
As for owning the content, I guess they could get something for their experience - a log, footage or something. I mean if it is a cinema game and works like a cinema then you wouldn't own the game (As the experience is purely when you play/watch etc) but when you look at the traditional gaming side that would cause an argument/dissent for obvious reasons. So instead of walking away empty handed the player could keep a video of their experience or something?
I don't know about renting by the hour, if it exists wouldn't it rather be priced like a cinema (I guess genre's and stories can vary by letting say the player die and just become a viewer or come back in some other form or do what the ghostbusters did in the sense that so long as someone's alive you can be resuscitated).
For such an experience, it would be pointless to pirate because then you'd be playing a different experience. The DVD release could be a single-player release based on the movie's story from say the point of the rallying NPC.
It would be a different experience. Coming to think of it now - do single player games with MP features normally have better single player or better MP? I mean if they go this way they have time after the release with the MP to tweak and improve the single player that perhaps the 'DVD release' might be more enjoyable than it usually is?
@WhatTheFrag:
Interesting idea, but I can't see it flying. Soooo many people WHINE incredibly about the cost of games as it is. If you figure the dollar per hour of entertainment value from most games, it is incredibly cheap entertainment. I have been reading so many cases lately where people complain about AAA games that will keep them occupied for 50+ hours costing too much at $50 or $60.
I think if you were to charge the same price as a movie for a game that lasts that same amount of time (regardless how good the experience is) people will be up in arms.
For some reason people expect that they should have endless hours of entertainment for negligible cost. But that's called a rock and a stick, not software.
@WhatTheFrag: Congrats! I think you just reinvented the Arcade. Reinvented being the key word here. Interesting idea, but a few flaws. Biggest problem would be... how do you take account for a vaste varying degree of skill among customers? Well that might not be the biggest, that might be "Is this really profitable for anyone?" or "Is there a big enough market for this?"...It's an interesting idea, but there are problems to overcome, none of which will even be encountered, because no one will get that fear due to fear... of failing...
spiderweb1986 promoted this comment
Edited by Cptn.PaxtonAstypalaea(Corsair) at 07/20/09 4:54 PM
Cptn.PaxtonAstypalaea(Corsair) was starred
Cptn.PaxtonAstypalaea(Corsair) was unstarred
@WhatTheFrag: Basically like mini bite sized MMO-isodes or interactive gameplay tv. Very nifty. And would probably get players like me who shy away from MMO's but still play a lot of online games.
I could see this being complicated to pull off if you wanted it to be an engaging MP experience like a movie where each player plays their part, and not just end up being a big war game/drama sponsored by Coke.
@WhatTheFrag: Thats an awesome idea. A video, interactive one of the whole battle, perhaps something specially edited to look great. Ok maybe thats going a bit too far but still. fantastic stuff, the DVD idea is great, maybe a higher priced entry fee for those who want single player content or who want to physically own the game
@MooglesInMyFace: 24 million (Est. 400,000 units x $59.99 US) means at least a 4 million net profit so far, which is more money than Ernie Hudson has seen for the better part of the past couple decades.
@Amsterdaam: Assuming that it cost absolutely nothing to create the disc, packaging, and ship it to retailers who sell the game for zero profit.
The cut is probably closer to $40 per copy at full retail. Which still leaves them about $8 million in the hole. Eventually they should be able to break even, but it doesn't look like Ghostbusters will be starting capital any additional games from the studio (which is why most studios do licensed games).
You need to subtract the retailer cut (20%), the licensing fees (5-10%) and marketing ($3-5MM). Not to mention some of the sales were NDS and PS2 at a lower retail.
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Obviously one has a much bigger market though.
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Games don't have a box office, even at 4x the selling price of a DVD, games are just about breaking ahead as the most-grossing type of media each year. So they have to reap higher profit margins back on each licence they sell over films, which by the point it's on store shelves is pulling-in pure profit. Should be interesting to see development costs in 10 years time, though. We'll look back at $15 million and wonder how they survived...
07/21/09
Also games are getting longer and longer which is slowing down game sales. The industry is pretty much hurting itself.
The following are games I want (that are to be released this side of Christmas)
FallOut 3 Ultimate Edition
Tiger Woods '10
FIFA '10/Pro Evo '10
SvR'10,
Assassins Creed 2
Splinter Cell Conviction
Heavy Rain
Uncharted 2
Shadow Complex
COD: MW2
Just Cause 2
Batman Arkum Asylum
Alpha Protocol
Dragon Age
Marvel Ultimate Alliance 2
It would cost me in the region of £600 to buy these games but I don't have that kind of money to throw down on games. I still haven't picked up inFamous or Prototype and I NEED them games.
I will buy Assassins Creed 2, FIFA, Smackdown and Splinter Cell on release day. The rest I will pick up when I see them in the 2 for £20 (or less) section. This means the developers won't see my money. What it also means is that I will have another 11 games for my backlog - so when GOW3, Tekken 6, FFXIII, GT5, DC Universe Online, Bioshock 2, The Agency, Modnation Racing, Ghost Recon, RUSE and what ever else that I want comes out I won't be buying them new either.
So from this point forth, most developers won't see a penny of my money which is a shame for them.
If Games were retailed at £10 I would be able to buy all those games for less money than I will be spending on the 4 games I mentioned. The developers would all get a slice of the pie and at that kind of price, I might be more tempted by games that aren't on the list. Even if new games were £20 it would be much better for developers as Game/GameStop wouldn't have as many people selling back their used games because in order for Game to make money on it, they would only be able to give £4-£5, more people would be able to afford the game, etc.
07/20/09
07/20/09
For additional weapon skins $5
For extra maps $10
For a hard mode $5
For extra multiplayer skins $3's a pop
07/20/09
07/20/09
But there won't be a patch for that.
07/20/09
07/20/09
07/20/09
It can be done tastefully--MGS4 gave Snake an iPod, which ended up having tons of downloadable songs and over a dozen in-game podcast walkthroughs. It felt very natural--even to the point that when you used it, it muffled the game's environment around him.
He also had Regain, an energy drink out of Japan that would restore his life.
There was a subtle one that the baddies used a certain brand of cell phone, but it was virtually non-existent, treated as nothing more than a device to use--unlike 24 where Sprint just forces Jack to waggle the brand in front of the camera.
07/20/09
Yeah, MGS4 had even more than that.
Playboy was licenced for the nudie mags, a brand name noodle and a japanese sugar pack for healing items. Apple computers all over the place on Otocon's plane as well as a PS3, and snake uses the sixaxis to control MkII.
07/20/09
07/20/09
I'm on the consumer end of the this debate. When I see a game like Modern Warfare 2 looking to make another $400 million sales, I don't want a game that only had $40 budget. I want it to have a $150 million budget. I want as much for my $60 as I can get.
07/20/09
Mocap was first, 3D scanning is next to become popular, right now it's semi-procedural fast editing/addition of detail to maps (starting basics are the FarCry2 editor, or iD's new stuff).
Also, bury down support for ShaderModel3.0, get access to individual MSAA/CSAA samples. This will simplify the content pipeline.
07/20/09
I'm sure that development costs can cause that as well, but there are certainly some planned decisions to make games the way they are. I also believe that not all DLC that comes out was made after the game was done and requires you to pay for it because the developer spent extra cash in order to make it. Sometimes companies are just greedy.
07/20/09
I for one want shorter games, even if the price to me, the consumer, doesn't decrease. I rarely want a game to go longer than 20-30 hours. That is well worth my $60.
07/20/09
I think money is just part of the reason. I also think that there are a lot of older folks who play games, who have families, jobs, etc., which takes away their time from playing games. That makes shorter games more important, I mean especially if the iPhone takes off as a platform. Shorter and shorter attention spans, battery life and ultimately bang for the developer's buck.
07/20/09
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07/20/09
I wouldn't complain about contentful games, except that if I can't see the ending (be it for lack of time or interest) I feel a bit gypped. So if that stuff is packed into replay value or whatever, then fine, but I don't want the main game to take >10-12 hours. If it's < 8 hours (e.g., HotD:O), then I prefer a $40 price tag.
07/20/09
After all, they need to pay distributors, manufacturers, licensing to Sony/Microsoft, etc. A lot of hands touch that money on the way from the retail back to the developer and publisher.
I'm not saying that they're not profitable but probably not as profitable as you might think.
As for comparing to the movies, movies have earnings that reach way further than box office - after US and Int'l box office, Pay-per-view, commercial licensing, TV rights, DVD sales, etc the profit a movie makes is usually far more than just the box office take.
07/20/09
Even at $60, that's $6/hr - probably less money than you'd spend to go watch a movie at the cineplex.
07/20/09
07/20/09
Not very unlike from sever FPSes that host about 60 or in the case of games like mag 256 people at a time. If it were possible to have a game that's not an MMO that has a finite story and each person experiences it from the viewpoint of a collective set of characters but together (the time frame probably would best be an hour I guess as it requires free time and people with time).
If that exists, and the game costs like the average ticket price then we might end up having games with high production values that perhaps can make money in the short term - it won't have the long tail DVD chain sales as in films unless it's a good concept and it can be broken down into a single player experience later.
A zombie game or an outbreak game would be a decent story to perhaps give this a test.
There of course would be overhead costs like hosting the game and managing it and making sure it runs fine. But larger groups of players, simultaneous experience and day 1 experience probably would have an interesting effect on say pirated games, the whole actual movie-game comparison and the interactive experience.
07/20/09
07/20/09
As for owning the content, I guess they could get something for their experience - a log, footage or something. I mean if it is a cinema game and works like a cinema then you wouldn't own the game (As the experience is purely when you play/watch etc) but when you look at the traditional gaming side that would cause an argument/dissent for obvious reasons. So instead of walking away empty handed the player could keep a video of their experience or something?
I don't know about renting by the hour, if it exists wouldn't it rather be priced like a cinema (I guess genre's and stories can vary by letting say the player die and just become a viewer or come back in some other form or do what the ghostbusters did in the sense that so long as someone's alive you can be resuscitated).
For such an experience, it would be pointless to pirate because then you'd be playing a different experience. The DVD release could be a single-player release based on the movie's story from say the point of the rallying NPC.
It would be a different experience. Coming to think of it now - do single player games with MP features normally have better single player or better MP? I mean if they go this way they have time after the release with the MP to tweak and improve the single player that perhaps the 'DVD release' might be more enjoyable than it usually is?
07/20/09
Interesting idea, but I can't see it flying. Soooo many people WHINE incredibly about the cost of games as it is. If you figure the dollar per hour of entertainment value from most games, it is incredibly cheap entertainment. I have been reading so many cases lately where people complain about AAA games that will keep them occupied for 50+ hours costing too much at $50 or $60.
I think if you were to charge the same price as a movie for a game that lasts that same amount of time (regardless how good the experience is) people will be up in arms.
For some reason people expect that they should have endless hours of entertainment for negligible cost. But that's called a rock and a stick, not software.
07/20/09
07/20/09
I could see this being complicated to pull off if you wanted it to be an engaging MP experience like a movie where each player plays their part, and not just end up being a big war game/drama sponsored by Coke.
07/20/09
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07/20/09
The cut is probably closer to $40 per copy at full retail. Which still leaves them about $8 million in the hole. Eventually they should be able to break even, but it doesn't look like Ghostbusters will be starting capital any additional games from the studio (which is why most studios do licensed games).
07/20/09
You need to subtract the retailer cut (20%), the licensing fees (5-10%) and marketing ($3-5MM). Not to mention some of the sales were NDS and PS2 at a lower retail.
07/20/09
No, it's more of 400,000 units x approx. $35-$40 US (NOT $60)
Don't forget the costs of disc, packaging, marketing/public relations, licensing, logistic/transportation, inventory etc.
Even downloadable games are not 100% profit: server hosting, internet connection, hardwares etc.
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