Majesco Goes To Bargain Bin For Videogame Profits

Thanks to Fortune.com for its article exploring the apparent success of often 'budget' publisher Majesco, which allegedly "scores extra points (and stays alive) by going where other publishers won't: the discount bin." The article explains: "Because the average value game costs a mere $250,000 to produce, Majesco needs to sell only 15,000 to 50,000 copies to break even, vs. anywhere from 200,000 to one million for more expensive titles." It also points to other, bigger-budget Majesco titles such as Bloodrayne and the forthcoming Advent Rising, noting: "While big publishers have the deep pockets to ride out a flop, virtually every one of Majesco's major titles - which can cost $5 million to $10 million each - had to hit big", though these larger development costs are somewhat offset by the value titles, of which it's suggested: "Those cheap games may not have flashy, big-budget effects, but parents are often more than willing to snatch one up for their kids on an impulse."

Comments

$250K? Wtf?

[Anonymous Coward]

I worked for the developer who created Deer Hunter when they were just a startup, before they grew in size due to the sucess of Deeer Hunter, produced five sequels, and then went under... And I have to question the budget they're quoting here.

When I worked for Sunstorm, they were paying me $22K a year and employed five people full time. Most projects to my knowledge were developed on a shoestring budget of $60K or less, and were each completed in less than three months, with several projects taking only a month to complete.

I did some work on Deer Hunter but I left before it was completed. Still, to my knowledge it was developed in less than five months. There were two fulltime programmers, two part time college students who were being paid next to nothing, and a contract artist. Do the math. Deer Hunter was probably developed for less than $60K considering the amount of time spent on it, and the cheap labor costs because it costs very little to live in Indiana. ($430 a month for a one bedroom apartment!)

Deer Hunter, in my opinion did not even need a team that large to develop it. Hi Octane was a full price 3D racing game developed in 6 weeks by two guys at Bullfrog. Deer Hunter was a 2D sidescrolling game with static backgrounds and a few deer sprites that would occasionally walk over the background. I could have written and done the art and sounds for it entirely by myself, if so inclined, that's how simplistic it was. Later incarnations were 3D, but still would hardly require significant effort to implement. I could do it if I had an artist to help me out.

So where's this $250K budget come from? If it took a year to develop a budget game that would be understandable, but a lot of budget games require far less effort than that. The last budget game that Sunstorm Developed was a Duke Nukem 3D sidescroller... THAT required significant effort and funding, and ultimately, it it probably what drove the company out of business. They had been developing more and more complex budget games, that were trying to be full priced games.

Anyway, I don't know any value game publisher who will even advance you more than $30K for a budget game, even a FINISHED one. I tried to negotiate money for a 3D beat em up that was completed and pretty fun, and they were unwilling advance more than $10K.

So I call bullshiat on these numbers. There are few budget games out there that would cost $250K to develop.

Full price? PFFT!

[Turn-X Alphonse]

How often have you gone "I'll buy it when it's cheaper, it'll only be a month or two.."?

I can name a list of games I don't want to pay £40 for but I'm happy to wait 2-3 months for it at £20. The gaming market is becoming like the drug market.

"Quick fix" "Move on" "Quick fix" "Move on"

Games are getting shorter and easier, I remember the days where you could finish a game in a couple of hours (Hello Sonic games) but they were fun so you went back and played them. I used to spend hours playing RPGs each day, hunting out that uber sword and last spell from some where.

It'd take me months of 10 hour+ days to find them items, I'd buy the magazines each month to follow progress of a game in development I wanted. I'd sit and drool at screenshots with funny little Japanese symbols I never understood (still don't know but I have babelfish..).

Then suddenly it stopped... the market became main stream, Sony flooded the market with poor quality 3D platformers and RPGs, the internet had news the day it was released in other countries. I haven't found a need to buy a magazine and theres just something missing from the internet previews.

Suddenly games don't seem worth the £40 I payed for stuff like Secret of mana, sonic and the like. Now I don't see a huge point of buying more then one every couple of months. So by the time that game I really want becomes an option for the "couple of months game" I buy now, it's reduced to half price. Everyone has forgotten it and I can sit down and enjoy it for what it is and not the hype everything gave it.

So in short for those not willing to read my rant.

Games today are shorter and less fun IMO.
The world's attenction span has dropped so they don't stick around with the games they buy, hence prices drop majorly and quickly.
May as well wait and get 10 games rather then 5.

Re:$250K? Wtf?

[bigman2003]

That's because you are thinking like the typical techie, not a business person.

There are more costs involved in running a business than college students, pizza and $490 apartments.

Things like insurance, accountants, office leases, advertising/sales, electricity bills, executive salaries, etc etc. A lot of people on the team are NOT productive.

On the other hand, I just picked up ESPN NFL2K5. Great game, and it LAUNCHED at $19.95. Pretty incredible that a company like Sega would put out a high quality game for so little. Maybe they are finally taking into consideration that each year is just a tweak of last years game, and pricing it accordingly.