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."
Oh I'd been saying this for the longest time. All you people buying Madden football have no idea what your money is fueling.
You are giving EA more money to buy BIGGER HANDCUFFS to slap on the video game industry. Soon they'll have license to every war, every gun, every car. And every game will have to be published under EA.