Assassin's Creed creator sees digital as saviour of big-budget games; says he's "fighting" for rights to 1666: Amsterdam
And they don't make money now? Damn! How much more money do you guys want?!?!
If you consider their costs making an AAA most of the studios doesn't make much money.. some of them are even often at risk of going bankrupt.. we all know, people today only buy COD, AC, GTA and so.. less known and smaller developers don't have a chance to make something big, that's why we get sequences every year and few studios dare to make new stuff.
They turn a profit on DLC. In fact, according to my calculations they approximately make an ungodly insane amount of money on DLC. Give or take.
If they see a return on their investment in marketing than yes it all works out well, but clearly a lot of companies aren't seeing the returns that they would like too see. Case and point, the Tomb Raider game.
If they budget right and the game sells decently, they make a ton, if it sells amazingly, they make a crap ton. With Season passes, DLC and microtransactions it just a very very thick layer of icing on a huge crap ton cake. Don't let these developers fool you, they wouldn't continue making games and sequels if there wasn't a big enough profit margin. Dev's love play possum and act like "OMG there's no money in making games", and how many of you actually sympathise with them and feel obligated to help them financially? Too many. Bottom line: Great games sell.
"according to my calculations" um, what? you do realize that your "calculations" don't mean anything right compared to the reality of talking to a developer -_-
The problem is that they spend more money on Marketing than making the game in many cases.
I'll imagine the investments in marketing are supposed to be returned in form of more sals, so I wouldn't see that as a problem unless it consistently fails to do just that. But they do spend some serious amounts on marketing.
Of course they're not gonna be successful every time. Assassin's Creed's marketing budgets are far higher than Tomb Raider and seem to get bigger every year. It is a problem that they have to take so much risk though.
This. I think there are some industries that don't benefit much from marketing. Smaller indie games might, but AAA spending as much money on marketing as on development is idiotic. When was the last time you heard about a AAA game and decided to buy it because you saw an ad? It just plain doesn't work that way! Games become big because of news coverage and word of mouth (thus why sequels sell so much more - they've had tons of word of mouth to establish the game series). Personally, I don't think the money spent on ads for AAA games returns on their investment.
Every game should make money if it's a quality title, and you keep your budget and expectations within reason. Square Enix is the perfect example of what not to do. Tomb Raider, Sleeping Dogs, and Hitman are all good / quality games. However, you can't expect any of those franchises to sell 7 - 10 million copies considering the sales of their predecessors over the last 3 - 5 years. Also looking at games in similar geners even the highest rated games of those genre rarely sell over 5 million copies. With that in mind keep your expectations in the range of 2 - 4 million for your games if you know the quality of the title is well above average, and keep your budget within reason. Don't pour $40 million into development, $40 million in CG video throughout the game, and $40 million into marketing and expect to make a huge profit. You have to keep things within reason or else risk not making your goal.
They don't make money because they don't know how to spend their money wisely.
Maybe if they made a new IP instead of milking the same series over and over
Ubi makes quite a few new IP's...is there another big publisher that takes more chances?
@Hammad ND isn't a publisher. Sony, who publishes ND games, is a publisher.
Thank you aviator189... EA UBI Activision Take Two(publish Rockstar games, 2k sports) Few of the other big name publishers out there.
I honestly though Ubi had the best showing of games at E3. Rayman, Watch Dogs, and the Division are all pretty unique looking games. And making 3 uncharted games and a zombie esque shooter this gen isn't necessarily "taking chances" however those games are all amazing. Plus as stated by other ND is not a publisher...
Thewb37 You are right about ubisoft but Sony does take more chances. Both truly exceptional publishers.
Ubisoft is proving that making new IP's is a good thing. What people don't understand is it's about QUALITY new IPs and giving them the money and time to make it truly quality. So many new games never really have a chance to become a real IP because as an unproven game, they aren't given the resources or time to polish the game and make something special.
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