Popularity and acceptance of gaming is up, but profits continue to be in decline. There has to be a reason. Maybe it comes down to a little more cooperation from everyone involved.
Gamestop...can only be part of the problem.
Agreed. They are in the business of making money like anyone else, but they need to realize the role they play and that if they don't start to support publishers more, they won't have used games to sell.
The main reason is the world is in the beginning stages of the greatest depression mankind has ever seen. Think about that for a second. Beginning stages...and it's been going on since 2007...finally noticed by people in 2008. What you have is your money is worth less then it used to be. So $60 doesn't buy you what it used to buy you. People buy what they need, and there's massive inflation in everything people need....gas, electricity, food, etc. So everything you NEED to live is skyrocketing, even though all the overall inflation metrics are gamed to show little to no inflation. Now what it also means is that revenue from sales doesn't stretch as far when trying to run a company. Fewer people have jobs....the people that DO, are making less. You have tens of millions of people worldwide not working, who were working a few years ago. You have tens of millions of people who might have been making 15-20-30 dollars an hour, now making $8 or $12 an hour. So people have less money to spend on games and the revenue the game devs get isn't worth as much. It's really quite simple. If you want to remove the impetus for dollar debasement, i.e. QE4EVA, then you must separate the real from the fake on the worldwide markets. You do this by separating the real from the fake with the big Inter-Alpha group of banks. You do this by reinstating Glass-Steagall. Then you can let the fraudulent derivatives that's been causing the depression, to be worth what they are really worth...not 1.4 quadrillion with YOUR deposits capable of being bailed-in Cyprus style to keep it afloat, but the 0 it's worth. Because derivatives aren't really anything but pure fictitious gambling bets. But they are destroying the world, causing the unemployment, causing the bailouts, and what do you really think is the reason for unrest in the middle east....simple they can't afford to live and that's whats causing the revolts. When Ben Bernanke prints 85 billion in a month to keep derivatives afloat, another hundred thousand people in the 3rd world suddenly can't afford food. There you have the impetus for the Arab spring. Literally unaffordable food caused the Arab spring. Sure there were other things that wound in with it, but suddenly people couldn't afford food and electricity, and saw how every month these prices were going up and up and up. People revolt. So from a gaming standpoint it's not hard to know why game developers are struggling. Why the money they get doesn't stretch as far, while at the same time they are selling less. It's the same pressures everywhere else in the economy. There is a reason, it's called...lack of Glass-Steagall.
The problem is not the economy. The good games mostly sell record numbers. The problem is the upfront cost of making the games has now exceeded the returns from very good sales. In other words: AAA games are too expensive to produce. An article I was reading earlier had a developer explain that the amount of artist required to do AAA games has greatly increase to about 75% of the budget. Massive opened world games at high resolution are even more expensive. The solution seems to be hidden in innovative tech. An engine that can render unique detailed environments. I think would be a good start.
Yeah, this is basically it. Industry ambition is simply too disproportionate to innovations in technology. That's pretty much it. There are too few companies working on developing tech, and far too many trying to push the boundaries of it. You get bloated, expensive teams working with inefficient tech, basically.
Absolutely right on. Until the industry figures out how to manage cost more effectively, profits will continue to be out of reach.
I agree. But, I also think that the dwindling economy also plays a significant role as well simply because the costs for developers and publishers have risen as well. While it is true that AAA budgets have increased, part of that increase has to do with the fact that the companies have to pay more for things that didn't cost as much before the recession. So, it's a two-fold impact. They have to have bigger teams, more tech, etc. But, they have more pull on their limited dollar. Add with that the fact that publishers are feeling the squeeze as well and are unwilling to take risks with unknown IP and unwilling to make better deals for developers to make money and you have the current situation. As you have all stated, the solution seems to be more innovative middleware solutions, better management of funds, better publisher support for the industry, and more creative ways to provide incentives for consumers to want to purchase their games.
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