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

Re:License == hit???

[Golias]

I just googled it. Top 10 games of 2005, by sales.

ONE movie tie-in (Spiderman, which some gamers insist did not suck)

TWO other licensed properties (Madden, which definitely did not suck, and Pokemon.)

The other seven, while almost all sequels, were popular for the game itself, not for being tied to some summer blockbuster.

1 - Grand Theft Auto: San Andreas - PS2 - Take II Interactive
2 - Halo 2* - XBX - Microsoft
3 - Madden NFL 2005* - PS2 - Electronic Arts
4 - ESPN NFL 2K5 - PS2 - Take II Interactive
5 - Need For Speed: Underground 2 - PS2 - Electronic Arts
6 - Pokemon Fire Red W/ Adapter - GBA - Nintendo of America
7 - NBA Live 2005 - PS2 - Electronic Arts
8 - Spider-Man: The Movie 2 - PS2 - Activision
9 - Halo - XBX - Microsoft
10 - ESPN NFL 2K5 - XBX - Take II Interactive