Only 80 Games A Year Will Succeed

0110011001110101 writes "Next Generation reports on the risks involved in game publishing and development. A report has been released suggesting that, in the next generation, as few as 80 games a year will turn a profit. Development costs in the next generation are set to rise from $3 -$6 million per title to $6-$10 million, with some cases surpassing $20 million." From the article: "Screen Digest's analysis shows that in the U.S. in 2004, titles based on licensed IP, such as Madden NFL 2005, sold 23% more units than titles based on original content. However, the short term revenue gains of licensed IP, does not necessarily translate into greater profits. Licensing costs are rising as IP owners become increasingly aware of the growing importance of the games medium."

Comments

huh?

[oman_]

Only 80 games will turn a profit? I find this hard to believe. Maybe the title should be changed to "Only 80 licensed huge piles of crap will succeed"

In the last hour of television I saw two commercials for upcoming games. Some sort of Shrek allstars fighting game and a crash bandicoot racing game. Same old tired concepts with IP licenses attached.

Who's supporting this? Who's paying money for this? I'd like to know who to blame. Is it the stupid rednecks who support 'intelligent' design? The people who voted for Bush?

I used to actually like video games and it makes me very angry to see something that used to be fun ruined by greedy business types.