DaMullet said:
Wolfram01 said:
I'm not saying it should cost $14, but that is what it would cost to cover making the game. Perhaps that's what retail outlets buy it for? Retail markup of 100% it's $28... We're still paying more than double that.
Have you looked at how much running a successful ad campaign is?
Also, let's say there's 50 people on the team for 2 years making an average of $40k a year. With things like WSIB (Worker's comp) and taxes and such its probably costing the company $50-60k a year to have that one employee.
So $50k x 50 people x 2 years = $5 Million
So there's half of the profit right there. Then add on office space, computer upgrades, advertising, etc and that 10 million is easily spent.
Umm... so? I said it's a 10 million dollar game. If you can't make and advertise a game for 10 million you're doing something wrong... or making a super epic game. Let's just say it IS a super epic game and it costs 20 million to make over 2 years. It would probably have more than 1 million sales but we'll stick with that, and the same 40% profit margin.
20,000,000x1.4/1,000,000=$28
So then retail markup (which, BTW, can be eliminated in this day and age of Digital Downloads) is 100% (an obscene amount for most industries) that's $56... So either publishers or retail is really screwing it's customers over. If the game was going to sell 1.5 million copies, it's back down to $18.66 per copy, or under $40 at retail with 100% markup.
I think one problem is that retailers are basically guaranteed $60 per copy, so publishers are guaranteed whatever portion of that (50%?), and they have a rough idea what sort of sales they'll get with a given game - probably a large reason for the lack of new titles, by the way. They know how they're games already sell so they can project how a new version will sell. Easier than guessing how a new IP will sell...
Anyway, point is, there's no competition in the space. They don't try to optimize game making because their budgets are fairly bloated. I mean they cut down costs hugely going to CD from cartridge, and now they don't even need that. They just need some server bandwidth to sell it online! Ad campaigns? Well sure, but plenty of games don't have much of one and still become super popular just by uploading a few gameplay videos and letting some popular gaming reps play a demo, who then go write about it for the masses to drool over.
My point is, $60 isn't always unreasonable, but the lack of competitive pricing for the most part is unreasonable. I doubt CoD expansions - sorry, I mean new Cod Games are costing millions upon millions of dollars to make with their yearly outings and using the same old tech yet they still sell them for $60 (because they can). Gamers get screwed, but quite often we let ourselves get screwed.