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Next-gen profit under threat

A new report from research company Screen Digest entitled 'Next Generation Console: Games Publishing, Hardware Analysis and Forecasts to 2010' has warned that many companies will struggle to make a profit from the next-generation console race, as well as adding that Sony's huge development investments will give PS3 the edge in the global market.

It states that due to the rising development costs needed to make next-gen games, only a tiny proportion of titles are likely to achieve profitability in the near future.

It also found that publishers are doing everything they can to combat the challenge, including increasing their levels of outsourcing, releasing games on as many formats as possible and relying heavily on sequels and film licences.

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bombzombie3800d ago

http://www.msnbc.msn.com/id...

It puts the economics kind of in perspective.

Covenant3800d ago

Seriously, many of the newer games cost as much (if not more) than many feature films, and unless the game sells well, the developer is out millions of dollars.