EA: Dead Space needs 5 million to survive.

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ActicEdge

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#151 ActicEdge
Member since 2008 • 24492 Posts

[QUOTE="Mario1331"]ok so your telling me hd games and their high budgets have nothing to do with developers bleeding money? or thats not just the only reasonVandalvideo
I'm saying HD isn't the major reason, and consoles are not to blame either. Its the publishers that fund these games; EA, Activision, etc. They want games that will appeal to the widest audience possible so they can stroke their egos about selling 5 million units and being popular. I'm not sure how or why this evolved, but it is a horrid business model. PC developer/publishers have learned how to prosper on lower sales numbers due to the disjointed nature of the PC platform. They make games for a very specific audience and make the mechanics that are important to those audiences as polished as possible. As a result, the games cost less to make and they get a higher return on their investment. Console publishers? They just demand the most BOOM, BANG, OMG A TRAIN IS RUNNING INTO A JET, multiplayer, useless mechanic horse crap and this is the result. Unrealistic sales expectations because of their horrible business models.

This right here is the answer. What I don't really get is how they can justify these budgets and actions to stock holders. If I owned stock in one of these companies I'd be more concerned about making money and less concerned about selling 5 million copies or being the next CoD.

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#152 Kell_the_Gamer
Member since 2012 • 885 Posts
[QUOTE="bonesawisready5"]That's such BS from EA. 5 million copies sold at an average of $40 per copy ($60 day one and $20-$30 after price drops I guess) would be $200 million

You do know from retail sales; the developers/publishers only gets a cut of $9-$18? Rest of it goes to the store as well as covers the prices of taxes, packaging, and shipping it there.
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Rattlesnake_8

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#153 Rattlesnake_8
Member since 2004 • 18452 Posts
I though Dead Space 3 would be the last one.. for this very reason. Dead Space 1 was AMAZING. The second was meh.. I never finished it, I really should go back and get it done. The third one I have no interest in. Shame, but thats just how some things are. The original Dead Space is still an awesome game that everyone should play.
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KingsMessenger

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#154 KingsMessenger
Member since 2009 • 2574 Posts

[QUOTE="Mario1331"]ok so your telling me hd games and their high budgets have nothing to do with developers bleeding money? or thats not just the only reasonVandalvideo
I'm saying HD isn't the major reason, and consoles are not to blame either. Its the publishers that fund these games; EA, Activision, etc. They want games that will appeal to the widest audience possible so they can stroke their egos about selling 5 million units and being popular. I'm not sure how or why this evolved, but it is a horrid business model. PC developer/publishers have learned how to prosper on lower sales numbers due to the disjointed nature of the PC platform. They make games for a very specific audience and make the mechanics that are important to those audiences as polished as possible. As a result, the games cost less to make and they get a higher return on their investment. Console publishers? They just demand the most BOOM, BANG, OMG A TRAIN IS RUNNING INTO A JET, multiplayer, useless mechanic horse crap and this is the result. Unrealistic sales expectations because of their horrible business models.

PC is cheaper to develop on for a large number of reasons.

Also, using The Witcher 2 as an example is kind of pointless.

A) They had a much smaller team.

B) The game is carried by elements that are the cheapest to produce(story and visual output)

C) They are from Poland. Much lower salaries and cost of living.

D) They are from Poland. Much cheaper land and office expenses.

E) They are from Poland. Much lower tax rate.

F) They had a much smaller team. Does not require nearly the same size space.

G) They didn't care at all about trying to appeal to a broad audience. They just made the game they wanted to make for whatever market existed for that game.

They also had almost no care at all for the development time of the game. They took as long as they felt like taking.

It is apples to oranges.

Also, the HD generation IS to blame for the rising development costs. Exceptions may exist, but the simple fact is that most publishers feel compelled to push budgets higher and higher because that is what players demand. If you take more than 2 years to get a sequel out then you lose players. People only have an attention span to wait so long for the next entry in a series before they lose interest. So, developers feel the need to push 2 year cycles. Similarly, as better and better production values and techniques emerge, that new tech becomes expected, regardless of the cost involved. So, AAA-ultra budget games push the tech forward while the rest of the industry limps along behind them carrying the weight of budgets 2-3 times too large. And god forbid you wait too long to adopt the new tech, because then gamers lose interest because the game isn't as "good" as the other games that are out.

It is the reality of the industry, and has more to do with the audience than it does with the publishers. The publishers are just reacting to what the audience is demanding. And what they are demanding is bigger, more badass games with bloated budgets and overly homogenized content. There is room on the fringes, just not much. And that is the problem.

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TopTierHustler

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#155 TopTierHustler
Member since 2012 • 3894 Posts

[QUOTE="sandbox3d"]

[QUOTE="mems_1224"] there are more than enough games this gen for any type of gamermems_1224

Man... keep fighting the good fight against games I guess? :?

If you cant clearly see the negative impact that this model has brought about then I don't know what to tell you. Yes, there are plenty of good games. That doesn't change the fact that things could be much better.

And I wouldn't say for every type of gamer either. We don't see as many pure genre games anymore because big budget houses don't want to risk appealing to a niche audience. Take a look at the stealth genre for example.

stealth genre didnt go away, it just evolved. if you dont like games now a days then maybe you should find a new hobby. i have more than enough great games to play

evolved into what? Pure action? That's no longer stealth, same thing with horrror genre, it's no longer horror, it's just non-stop mindless action.

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KingsMessenger

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#156 KingsMessenger
Member since 2009 • 2574 Posts

This right here is the answer. What I don't really get is how they can justify these budgets and actions to stock holders. If I owned stock in one of these companies I'd be more concerned about making money and less concerned about selling 5 million copies or being the next CoD.

ActicEdge

Because that is the only way to compete.

The games industry expanded, but in a very limited scope. The expansion that the market has seen is almost entirely of people who want cinematic action, multiplayer, and the like... The "core" market for other games(along the lines of the original Dead Space, the original Mass Effect, or BioShock) has not really expanded that much(it may have even softened). It is the same 1-3 million players that it was 6 years ago. However, all the things that the big budget cinematic action games have brought to the table are suddenly expected, even by those 1-3 million players. They want the better production values and better overall quality that came with the massive budget games to suddenly appear within their Mass Effect, Dead Space and BioShock games. And that just costs more. So, you are left with a market that hasn't expanded much suddenly needing to sustain a substantially more expensive product. It doesn't work. So, you now need to start drawing in design elements from the more mass market games in an attempt to draw in pieces of the expanded market. However, that just makes the core market angry. So, now you need to go even further down that path to make up for the players you alienated, and then that viscious cycle begins.

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Vandalvideo

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#157 Vandalvideo
Member since 2003 • 39655 Posts
PC is cheaper to develop on for a large number of reasons. Also, using The Witcher 2 as an example is kind of pointless.A) They had a much smaller team. B) The game is carried by elements that are the cheapest to produce(story and visual output) C) They are from Poland. Much lower salaries and cost of living.D) They are from Poland. Much cheaper land and office expenses.E) They are from Poland. Much lower tax rate.F) They had a much smaller team. Does not require nearly the same size space G) They didn't care at all about trying to appeal to a broad audience. They just made the game they wanted to make for whatever market existed for that game.They also had almost no care at all for the development time of the game. They took as long as they felt like taking.KingsMessenger
None of those arguments really combat what I was saying, if anything they support what I was saying. Your example is a prime illustration of what I was saying about PC publishers being more interested in appealing to a very specific demographic and not putting too many frills into their games. Not only that, but my discussion proceeded from a viewpoint of all things considered equal. The fact that CD Projeckt is Polish has nothing to do with my argument. Were you to place a console developer in Poland, the same argument would apply. Two companies, both in the same country and working on the same game on both platforms would not be astronomically more expensive. It would be the exact same. It is the focus of production that matters.

Also, the HD generation IS to blame for the rising development costs. Exceptions may exist, but the simple fact is that most publishers feel compelled to push budgets higher and higher because that is what players demand. If you take more than 2 years to get a sequel out then you lose players. People only have an attention span to wait so long for the next entry in a series before they lose interest. So, developers feel the need to push 2 year cycles. Similarly, as better and better production values and techniques emerge, that new tech becomes expected, regardless of the cost involved. So, AAA-ultra budget games push the tech forward while the rest of the industry limps along behind them carrying the weight of budgets 2-3 times too large. And god forbid you wait too long to adopt the new tech, because then gamers lose interest because the game isn't as "good" as the other games that are out.

This only applies when you have publishers who are paying for developers to create a brand new engine. However, most companises nowadays lease an engine from EPIC or Crytek. The development costs for graphics is the same in either case. A PC developer using the UE3 engine pays no more than a console developer using the UE3 engine. It isn't the engines themselves to blame. PC developers, again, have been pushing HD fidelity since 1995! HD itself is not to blame. Its post production assets like gameplay mechanics and other bells and whistles which PC publishers and games don't give to faps about.

It is the reality of the industry, and has more to do with the audience than it does with the publishers. The publishers are just reacting to what the audience is demanding. And what they are demanding is bigger, more badass games with bloated budgets and overly homogenized content. There is room on the fringes, just not much. And that is the problem.

The problem is, that only applies if you are trying to appeal to the widest audience possible. Not all gamers are necessarily interested in this. You get deminishing returns by trying to appeal to a broader and broader audience. Its a crap business model. Publishers should instead focus on appealing to a smaller demographic that don't care about all those bells and whistles. Sure, sales number will go down, but per product value will go up. They will be making more money even if they only sale a fifth of the units they used to.
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#158 Vandalvideo
Member since 2003 • 39655 Posts
Because that is the only way to compete.KingsMessenger
No, its not. That is too simplistic a view on how economics work. You want to increase marginal revenue instead of trying to increase the number of units sold. Its a losing battle and irrelevant to stock holders. All you should care about is profit. Thats it, profit. You minimize production costs even if it results in fewer units sold. Why? You earn more per unit. Astronomically more. Why do you think most developers start on PC and shift to consoles? Because its easy to gain capital on a PC. Its a tried and true business model. Fewer units, more marginal revenue; higher profits!
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2Chalupas

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#159 2Chalupas
Member since 2009 • 7286 Posts

Same thing happened with the UFC games. There were selling 2 million plus units and still losing money. Games cost more to make than people realize.FPSfan1985

That's totally different though because UFC is a licensed game. With the licensed games like UFC, madden, fifa, tiger woods, etc. Even if they just copy/past the same code over again, they still have to pay some degree of licensing fee. I'm sure the really big license fees run into the $10's of millions annually, and then on top of that they still have marketing costs. Those games are pushed purely on licensing and marketing. It should be very obvious by now, that the actual GAME DEVELOPMENT for these franchises year after year is not very much. At best they are just tweaking the same game over and over again (and half the time they even screw something up moving from year to year, like screwing up the rosters or the stats or breaking a certain mode in the game that worked fine the year before).

It's the same thing with licensed movie games. It wouldn't be surprising if some of them pay like $5 million to license the movie, and then spend $1 million or less making the game.:lol:

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#160 KingsMessenger
Member since 2009 • 2574 Posts
[QUOTE="Vandalvideo"] This only applies when you have publishers who are paying for developers to create a brand new engine. However, most companises nowadays lease an engine from EPIC or Crytek. The development costs for graphics is the same in either case. A PC developer using the UE3 engine pays no more than a console developer using the UE3 engine. It isn't the engines themselves to blame. PC developers, again, have been pushing HD fidelity since 1995! HD itself is not to blame. Its post production assets like gameplay mechanics and other bells and whistles which PC publishers and games don't give to faps about.

You aren't understanding what I am talking about when I am saying the HD generation.... I am not referring specifically to the games being HD, but rather the type of mentality and production focus that it has brought about(which i think you agree with me on). This is a console generation where everyone is competing with everyone else and every time one person pushes something forward, everyone else needs to follow. The pure cost rose with the HD generation(higher quality assets cost more), but it also created a level of one-ups-manship where new tech was constantly being developed and then everyone else needed to adopt the new tech lest they fall behind. It caused budgets to rise from $10 million at the start of the generation to $100 million now. And whenever a game comes out that fails to match these top budget games in certain categories, then people start complaining and the product fails to sell. [QUOTE="Vandalvideo"] The problem is, that only applies if you are trying to appeal to the widest audience possible. Not all gamers are necessarily interested in this. You get deminishing returns by trying to appeal to a broader and broader audience. Its a crap business model. Publishers should instead focus on appealing to a smaller demographic that don't care about all those bells and whistles. Sure, sales number will go down, but per product value will go up. They will be making more money even if they only sale a fifth of the units they used to.

The issue with that is that it is not a growth business. And a technology business that isn't a growth business is a dying business. The market for the type of games that you want simply is not growing. And thus, nobody wants to touch it. Production costs are going to rise no matter what happens. New technology always costs more, and even the "lower budget" games you talk about still need to follow the newest technology to compete. That means that even if they return to the $10 million budget games, costs are still going to rise eventually, but nothing has suggested that the market is expanding to meet that increasing cost... Then, god forbid a new console generation comes along. What happens then? New tech, new graphic fidelity expected, new costs... Market still hasn't expanded that much, so now you have a $20 million game built for a $10 million market... Like it or not, games need to appeal to a bigger market. That is just a fact. It will mean costs will continue to rise, but it is the only way that the industry can sustain itself... The issue is, even that has a limit, so publishers need to work on alternative means of monetization to generate revenue in other ways to help subsidize the increasing costs.
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KingsMessenger

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#161 KingsMessenger
Member since 2009 • 2574 Posts

[QUOTE="KingsMessenger"]Because that is the only way to compete.Vandalvideo
No, its not. That is too simplistic a view on how economics work. You want to increase marginal revenue instead of trying to increase the number of units sold. Its a losing battle and irrelevant to stock holders. All you should care about is profit. Thats it, profit. You minimize production costs even if it results in fewer units sold. Why? You earn more per unit. Astronomically more. Why do you think most developers start on PC and shift to consoles? Because its easy to gain capital on a PC. Its a tried and true business model. Fewer units, more marginal revenue; higher profits!

It is getting harder and harder to do that tough. Even the PC is reaching a point where marginal costs are exceeding the market for those types of games. It isn't an expanding market. It is a stagnant market that has been stagnant for almost a decade now...

Also, stockholders are stupid. You can have the most stable profit margins on the planet, but as soon as any one of your competitors strikes gold in a way that you have not(Call of Duty... World of Warcraft...) all those stockholders are going to want is some of that pie. Doesn't matter what the market consequences or chances of achieving that happen to be, those stockholders want their pie and they want everyone else's pie as well.

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#162 Vandalvideo
Member since 2003 • 39655 Posts
[QUOTE="KingsMessenger"] You aren't understanding what I am talking about when I am saying the HD generation.... I am not referring specifically to the games being HD, but rather the type of mentality and production focus that it has brought about(which i think you agree with me on). This is a console generation where everyone is competing with everyone else and every time one person pushes something forward, everyone else needs to follow. The pure cost rose with the HD generation(higher quality assets cost more), but it also created a level of one-ups-manship where new tech was constantly being developed and then everyone else needed to adopt the new tech lest they fall behind. It caused budgets to rise from $10 million at the start of the generation to $100 million now. And whenever a game comes out that fails to match these top budget games in certain categories, then people start complaining and the product fails to sell.

Ah, yes we do agree on this point. When I was referring to HD I was talking with the original poster about how HD itself wasn't the cause, because the PC has been doing it for so long with no problem. But yes, its the mindset the HD generation has brought on.

The issue with that is that it is not a growth business. And a technology business that isn't a growth business is a dying business. The market for the type of games that you want simply is not growing. And thus, nobody wants to touch it. Production costs are going to rise no matter what happens. New technology always costs more, and even the "lower budget" games you talk about still need to follow the newest technology to compete. That means that even if they return to the $10 million budget games, costs are still going to rise eventually, but nothing has suggested that the market is expanding to meet that increasing cost... Then, god forbid a new console generation comes along. What happens then? New tech, new graphic fidelity expected, new costs... Market still hasn't expanded that much, so now you have a $20 million game built for a $10 million market... Like it or not, games need to appeal to a bigger market. That is just a fact. It will mean costs will continue to rise, but it is the only way that the industry can sustain itself... The issue is, even that has a limit, so publishers need to work on alternative means of monetization to generate revenue in other ways to help subsidize the increasing costs.

True, these kinds of markets are not going to grow. At the same time, its a safe market to appeal to. Why? If you play the game with the big titles you are going to have to keep rising development costs to keep up pace with the competition. At the same time, this is going to require more and more units sold to make even roughly the same kind of profit margins you would get from reducing costs. There is a huge problem with this business model. Not everyone is going to win. Actually, most people will lose. The industry cannot sustain so many people pushing for 5million + units sold. Gamers have too much of a diversified taste and too small of a budget for that to happen. However, the same kind of competition does not apply to budget games or games where you try to appeal to a smaller audience. Why? That audience is much more fervent about the games they care about. They will buy them if you make them well. People eat games like SINS and Deadly Premonitions up. Its a safe investment. You sell less units, you look less popular, but its a safer investment and you're rich! Thats all stockholders care about, and this is really the only healthy way for the growth of new IPs. Otherwise, new IPs will continue to get even more risky as time goes on and development costs sky rockets. And guess what happens then? Publishers will be even more avid about saying "no new ips!" Moral of the story; indie titles is the way to go for new IPs.
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#163 KingsMessenger
Member since 2009 • 2574 Posts

Thats all stockholders care about, and this is really the only healthy way for the growth of new IPs. Otherwise, new IPs will continue to get even more risky as time goes on and development costs sky rockets. And guess what happens then? Publishers will be even more avid about saying "no new ips!"Vandalvideo

If only that is what stockholders cared about...

In theory, you are right. Stockholders should just care about profits. However, the reality is that most stockholders are a bunch of weak-willed sissies that are greedy and fickle... They don't just want profits, they want more profits. They rarely understand the market or industry that they are investing in, and most of the time the thing that they want the most is for you to keep doing what you are doing right, but also do what everyone else is doing right. It never matters if those things are compatible or even feasible.

They want to eat their cake, and then they want to eat everyone else's cake. And then they want to get a contract saying that all future cake ever will be their to eat.

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Mario1331

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#164 Mario1331
Member since 2005 • 8929 Posts

[QUOTE="Vandalvideo"][QUOTE="Mario1331"]ok so your telling me hd games and their high budgets have nothing to do with developers bleeding money? or thats not just the only reasonKingsMessenger

I'm saying HD isn't the major reason, and consoles are not to blame either. Its the publishers that fund these games; EA, Activision, etc. They want games that will appeal to the widest audience possible so they can stroke their egos about selling 5 million units and being popular. I'm not sure how or why this evolved, but it is a horrid business model. PC developer/publishers have learned how to prosper on lower sales numbers due to the disjointed nature of the PC platform. They make games for a very specific audience and make the mechanics that are important to those audiences as polished as possible. As a result, the games cost less to make and they get a higher return on their investment. Console publishers? They just demand the most BOOM, BANG, OMG A TRAIN IS RUNNING INTO A JET, multiplayer, useless mechanic horse crap and this is the result. Unrealistic sales expectations because of their horrible business models.

PC is cheaper to develop on for a large number of reasons.

Also, using The Witcher 2 as an example is kind of pointless.

A) They had a much smaller team.

B) The game is carried by elements that are the cheapest to produce(story and visual output)

C) They are from Poland. Much lower salaries and cost of living.

D) They are from Poland. Much cheaper land and office expenses.

E) They are from Poland. Much lower tax rate.

F) They had a much smaller team. Does not require nearly the same size space.

G) They didn't care at all about trying to appeal to a broad audience. They just made the game they wanted to make for whatever market existed for that game.

They also had almost no care at all for the development time of the game. They took as long as they felt like taking.

It is apples to oranges.

Also, the HD generation IS to blame for the rising development costs. Exceptions may exist, but the simple fact is that most publishers feel compelled to push budgets higher and higher because that is what players demand. If you take more than 2 years to get a sequel out then you lose players. People only have an attention span to wait so long for the next entry in a series before they lose interest. So, developers feel the need to push 2 year cycles. Similarly, as better and better production values and techniques emerge, that new tech becomes expected, regardless of the cost involved. So, AAA-ultra budget games push the tech forward while the rest of the industry limps along behind them carrying the weight of budgets 2-3 times too large. And god forbid you wait too long to adopt the new tech, because then gamers lose interest because the game isn't as "good" as the other games that are out.

It is the reality of the industry, and has more to do with the audience than it does with the publishers. The publishers are just reacting to what the audience is demanding. And what they are demanding is bigger, more badass games with bloated budgets and overly homogenized content. There is room on the fringes, just not much. And that is the problem.

i agree i agree with the other guy too idk much bout the witcher because the game is garbage too me, and thats the only thing GD1551 was bringing up. why?idk

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immortality20

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#165 immortality20
Member since 2005 • 8546 Posts

It's a sad state when a mllion copies isn't successful anymore.

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GunSmith1_basic

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#166 GunSmith1_basic
Member since 2002 • 10548 Posts

if this is a budget issue (which floors me) then it's just depressing that stuff like cinematics and qtes could be party responsible for this situation

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ShadowsDemon

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#167 ShadowsDemon
Member since 2012 • 10059 Posts
:cry: I love Dead Space
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#168 Ghost120x
Member since 2009 • 6060 Posts
Dead space will now go to tithe graveyard where all the other horror games go when the publishers get greedy. Only one still surviving is fatal frame, even silent hill is taking the "action" route (look at the vita game)
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deactivated-5df236af85f29

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#169 deactivated-5df236af85f29
Member since 2011 • 481 Posts

what was the last ea game that sold 5 million?

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skrat_01

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#170 skrat_01
Member since 2007 • 33767 Posts
So 'in effort to make our games all commercial successes we must homogenize then entirely'. Behold, the triple A games industry.
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Vandalvideo

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#171 Vandalvideo
Member since 2003 • 39655 Posts

[QUOTE="Vandalvideo"] Thats all stockholders care about, and this is really the only healthy way for the growth of new IPs. Otherwise, new IPs will continue to get even more risky as time goes on and development costs sky rockets. And guess what happens then? Publishers will be even more avid about saying "no new ips!"KingsMessenger

If only that is what stockholders cared about...

In theory, you are right. Stockholders should just care about profits. However, the reality is that most stockholders are a bunch of weak-willed sissies that are greedy and fickle... They don't just want profits, they want more profits. They rarely understand the market or industry that they are investing in, and most of the time the thing that they want the most is for you to keep doing what you are doing right, but also do what everyone else is doing right. It never matters if those things are compatible or even feasible.

They want to eat their cake, and then they want to eat everyone else's cake. And then they want to get a contract saying that all future cake ever will be their to eat.

I guess I just have too high expectations for my fellow investors. Personally, all I really ever care about in stocks is their earning potential. I don't really pay attention to empty statistics like "how many units sold" of a given product. I should rephrase myself. All smart investors should care about is the profit margins, and this is easily the best way to make a safe profit.
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mitu123

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#172 mitu123
Member since 2006 • 155290 Posts

what was the last ea game that sold 5 million?

shreshto
Battlefield 3.