130°

GTA Publisher: Game Development Getting More Expensive, Risky

Take-Two Interactive, which wholly owns Grand Theft Auto studio Rockstar Games, says that the games business is still growing, but that it's also becoming more expensive and risky.

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bloomberg.com
getrektedmate3350d ago

They sold more than 55 million copies of GTA 5 and yet they are complaining development is getting expensive? Wow just wow

pompombrum3350d ago

And how many other games sell 55 million copies? How many other games have such a strong reputation among gamers and casuals alike as the GTA series? Most publishers don't have the luxury of such an established franchise.

Bansai3350d ago

Then stop forking money out to the marketing department so much, we really don't need to see giant ads on buildings across the whole world to know I'm buying this or that.

freshslicepizza3350d ago

without good marketing some games can potentially flop. people complained all the time of sony's lack of marketing for many of their games on the ps3 that didn't sell well.

i don't get why some people cannot connect the dots here. games cost more money to make than they used to. which translates to studios shutting down because they couldn't sell enough copies, less ip's due to risk factors, more dlc being sold, season passes now being sold, single player campaigns short, online tacked on.

then you have consumers who have this idea multiplayer games should not cost $60 even if the production costs are the same as a single player game. or they think all dlc content should have been included.

yet not one person can explain how because costs have risen that game prices and content should remain thw same.

GreetingsfromCanada3350d ago (Edited 3350d ago )

For starters gta v shipped 45 million and absolutely no other retail game comes close, but more importantly creating a modern AAA can easily cost over 100 million and with operating income for EA being only 120 million in 2013 1 game can make or break a company's year and stock price. Even making a new ip with AAA backing is very risky for the year's earnings.
Edit: If I'm not mistaken Take two (2k) posted losses for 3 years maybe more before GTA V came around.

DougLord3350d ago

The kids on here don't get the business side of this. One guy actually called me a liar when I said games have gotten a lot more expensive. He said they cost just as much to make on PS2. The kids on here want to yell and scream about season passes and DLC, and pretend it's developer greed ignoring the fact that graphics teams are 10x what they used to be. You used to be able to make a game with 3 or 4 people in a basement. Now team sizes are HUNDREDS of people. And with used games and Steam, game prices fall faster then ever.

Roccetarius3350d ago

If your modern AAA game can cost over 100 million, then something is terribly wrong with your budget.

C-H-E-F3349d ago

I think they spent more money than it took to make Avatar to make GTAV... and Avatar took 10 years to make... That makes sense... if you want a game that is of QUALITY you will be dishing it out... GTAV is lucky to have a great reputation and track record... So if you have a new IP on a GTAV budget lets say uhh DESTINY... then you will see how 500 million dollars will not get you anywhere near that billion that GTAV made.

SaveFerris3350d ago

Did he say NBA 2K bigger than Madden? Whoa.

_LarZen_3350d ago

Making AAA games is expensive and a big risk. It's therefor it's so refreshing to see Indie games that is relative cheep to produce and that is pushing gameplay more then these big AAA games.

Pintheshadows3350d ago

Making a good indie is still expensive.

Seafort3350d ago

CDProject RED disagrees. They made The Witcher 2 for $10.8 million. It's probably one of the best RPGs ever made.

It doesn't have to be expensive if they manage their budgets correctly.

dreamoner3350d ago

It's cos living in their country is not expensive. They're paying less to their employees. Tho W3's budget should be more than 3x of W2, I'm thinking much more.

Pintheshadows3350d ago

Oh, I don't disagree Seafort, but $10 million is still $10 million.

The problem is that most developers don't live within their means and go entirely over the top. This includes indies.

_LarZen_3350d ago

Depends...but sure it can be. But not xxx million type of expensive :)

+ Show (1) more replyLast reply 3350d ago
Seafort3350d ago

It's only more expensive due to the marketing budget or lack there of.

Publishers spend much more on marketing than they do on the actual game development.

To me that is their problem if they want to spend $100mil+ on marketing but the customers shouldn't have to pay for their extravagances.

Increasing the price of games + DLC due to this expense is BS by the publishers.

No excuses can be made by the publishers that game development expenses has increased therefore it's riskier to make games now than it was. If they want to wine and dine gaming press, pay for TV adverts, billboards and pay off game reviewers for good reviews that's on them not the gamers.

Lighter93350d ago

You have to spend money to make money.

Show all comments (23)
200°

Take-Two CEO Says Competing Xbox and PlayStation Consoles Are a 'Benefit' but Not a 'Necessity'

But he's still firm that physical games aren't going away.

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nordic.ign.com
Cacabunga68d ago

Gamers have the power and they are the Ives who will decide if physical stays or not.. physical is here to stay, but good that a guy like this confirms

jznrpg69d ago

Keep up the physical copies I’ll keep buying PS and Nintendo consoles.

shinoff218368d ago

Fking word. Physical is the key. People would be surprised because the misconceptions out there but there's a sh ton of us that still prefer this route

ApocalypseShadow69d ago

One high end console has always been a benefit. The other is no longer a necessity.

Only competition there ever was, was when one launched a year to a year and a half early. Based on this generation, the other would have to launch 2 to 4 years early just to compete. Because buying a huge part of the industry, having a multiple game sleep mode, cheaper in price, smaller form factor, supposedly having better BC and a day one subscription service, has still resulted in another huge ass kicking.

Yay for physical Take Two.

Knightofelemia68d ago

I wouldn't really call it competing when a company is dead last in sales when compared to the rival company. I will always stick around for physical copies of games. Moment games go all digital is the day I bring the SNES and Genesis out of hibernation and just stick to retro.

Hofstaderman68d ago

The voice of resounding sanity.

Michiel198968d ago

looks at gta 5 monetization and NBA 2k scandal....

Show all comments (12)
80°

GTA6 Publisher Senses "Much Higher" Anticipation Compared to GTA5, Discusses Ominous Cost Reduction

Take-Two CEO Strauss Zelnick said that the company senses "much, much higher anticipation" for GTA6 compared to GTA5. Unfortunately, the company is also discussing a "robust" cost reduction program that sounds really ominous.

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techraptor.net
120°

Grand Theft Auto V Has Sold Over 195 Million Units, Red Dead Redemption 2 at 61 Million Units

Take-Two announced its financial results for Q3 of the fiscal year on top of an update to sales figures of Grand Theft Auto V, Red Dead Redemption 2, and more.

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techraptor.net
Profchaos69d ago (Edited 69d ago )

So 2.47% of the global population have a copy of gta v no wonder they don't want to release vi there's still so many people who haven't brought v

Obvious sarcasm here

Abriael69d ago

Ha ha, we should probably count that a lot of people have 2 or 3 copies by now, for different platforms.

Cacabunga69d ago

RDR2 deserves much more praise.. game is unbelievable

KwietStorm_BLM69d ago

To think that 5mil sold is considered a huge success for any game in general, and 10 is amazing. I cannot believe people are still buying this.

Themba7669d ago

I keep saying that’s why the 7th generation was the most loved because of gta5 and Skyrim.

Demetrius69d ago (Edited 69d ago )

Well hopefully millions went to gta 6 singleplayer mode to make it extra epic but knowing rockstar nowadays there won't be a full support for singleplayer, mainly online will be the focus i bet but I hope atleast theres plenty to do in the open world and not just look good with little to nothing to do, after gta 6 ain no tellin when we will get another rockstar title even tho the mfs sucked in millions from red dead 2 as well I miss when we got more than 1 game a gen from them they always delivered, so many key staff members left not even just the well known names