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EA Spends 3x More On Marketing Than Development
G3ckoG33k writes "According to Electronic Arts officer Rich Hilleman, 'the price of producing console games has rocketed, with marketing costing up to three times more than the development of a title.'" Sounds pretty insane, but does anyone know how this compares to the film industry?
What if those ads help you sell the baby for $50,000, instead of $15,000?
That's not what ads do. Based on experiments I participated in in college, advertising has the net effect of reducing per unit costs. The buyer can more easily shop around and get the best price. Advertising in this sense Is Good.
Most of the people clamoring in favor of nationalized Obamacare have either chosen to ignore or don't know the disastrous effect that Dick Nixon's wage & price controls had in 1971 http://www.econreview.com/events/wageprice1971b.htm
If you want to reduce the cost of something, allow advertising with price to buyer and the prices will go down.
Perhaps with games the price has gone down too much. The cheapest game in terms of usage & enjoyment I've bought is World of Warcraft, even though I pay a monthly fee (well two actually since my wife plays too). There's nothing more expensive in entertainment than buying a game and after opening it up and trying it out, then discovering that it is unfun and sucks big time.