Ubisoft announced its financial results for the fiscal year 2024-2025, and they're not good, but Assassin's Creed Shadows is doing well.
Thomas Mahler: "Since it's quite bananas that a lot of players still do not understand the economy behind game development, I thought it'd be best to just break down a real example of a really successful first-time developer who managed to make a deal with a publisher. "
I wouldnt call a game that costs 10 million to make and had over 30 people from different companies working on it an indie game.
Seriously, no.
its an independent studio that is not owned by any big studio or publisher. what else would you call them?
Indie means independant PLUS low budget.
Say I'm a billionnaire and decide to fund my own game with a $20M budget, is it an indie game just because I don't call a publisher? Dev costs increase yeah, but $10M is hardly indie
@TheCaptainKuchiki I mean there is a word, independent, now look up what independent means.
https://dictionary.cambridg...
If you are a billionaire and fund your own game your game your studio is definately an independent studio xD
Thats what the word means.
Game development expenditures have exploded since the old days, Terry. Office space, hiring computer techs, game development equipment and art direction all have insane costs now.
Regardless the expenses are still there. If every indie studio had a success like Stardew Valley, they wouldn't be begging big time publishers, crowdfunders and investors to cover development costs. Alas most don't.
I don't get it..
He starts with 10M cost for the game excluding marketing and continues to detract "other"costs...
Why are the costs of storefront, engine etc not included in the 10M?
CEO makes CEO noises.
If he takes a 1 million dollar bonus every year the game is being made and the game took 5 years to be made, the "cost" isn't 10 million, it should be 5 million.
It's just more magical accounting. This industry is replete with it.
@Santouryuu
Yeah, it's weird. On top of that, he subtracts engine, tax from HIS own money, but this should be put on the publisher (or at least be split, 50%/50% or how they agree), because they're benefitting from the sales as well. On top of that, he makes it look like he didn't get a cent, but he (and his team) was paid the salary the whole way through, with bonuses and stuff. Probably rent for the office was taken care of as well and licenses/devices too.
And also, he acts like his games' average price was $10 (by the way, if the game cost $10 million, who decided to sell it for $20?! Sounds idiotic), which is ridiculous, popular indie games don't do 50% discount right after release and the most of the sales are done a few months after release (according to the publishers). As an example, look at Rimworld, Dwarf Fortress, Factorio, Kenshi, they either didn't have 50% discount yet or had it years after the release.
Also, he acts like the game was only sold on Steam, but that's false. And Microsoft, i'm more than sure, didn't take 30% from them (because it's a game published by them on their platform).
The only thing this tells me is that someone is trying to manipulate us and you shouldn't work with Microsoft if you want to remain sane.
because thats what he has to HAVE RIGHT NOW to develop the next game (engine, tax andso on)
Yes xbox of course did not have the 30% tax but then again he is just making a hypothetical, I am pretty sure their game did not sell exactely 20millions ^^
Its not the cost of storefront. Your game made 20million but from those 20million the store takes 30%. Steam took 30% from the 20million you made. got it?
If you make 20million in sales Steam takes 6 million.
So you only get 14millions. Then you have to pay back what you owe the publisher, so 10millions in devcost and 2million in marketing.
So you are left with 2millions.
From the 2millions of pure profit 70% goes to the publisher and 30% to the developer (depending on your contract)
So you are left with 600k to pay for your next game, for now.
lots of numbers but very clearly put
Really enjoy the Ori games, but the studio head has always been an insufferable dickhead. Those costs aren't included cause he's miserable and full of shit.
Where did those $10 million go though? It’s a loan basically, but didn’t those pay through the development? Essentially the developer got paid $10 million upfront to make a game. If the game didn’t hit $12 million in sales-say $8 million. The publisher lost that money. The developer still got $10 million. Sure, maybe their next game may not be funded-but they wouldn’t have to come up with the $4 million missing. That’s a loss from the publisher.
Hi-Fi Rush developer Tango Gameworks has revealed a brand new logo/website, and that it is currently working on an unannounced action game.
IO Interactive is doing their own showcase this Friday and have revealed what is in store.
It may be interesting.
I am curious about their decision to do their own show.
we need a Hitman game that is like the old ones, not too interactive and network based. I want to be able to use every weapon and unlock them for every form of gameplay style. I hate that you get punished in these modern Hitman game for using a rifle rather than your silent pistol.
Three companies keep showing their true faces and telling us who they are but for some weird reason we refuse to believe them. Even when everything they show just makes their greediness even stands out more
Keep messing with the consumers and keep being greedy. Keep telling your consumers to get comfortable now owning your games and we will. You only have few IP's that gamers care about anyways so
"soon enough tencent will buy you out. They already own 49%. Keep deleting games from gamers libraries and getting sued over it instead of making offline play possible for the crew" it's sad that I believe in 10 cents more than UBI because atleast tencent knows how to run a proper business
These executives can taking millions and bonuses and stock options yet they fire those actually making the games without thinking twice. Gaming has become so greedy that their own greed will be their downfall. Companies like Capcom have realized making good quality games and treat gamers with respect
AC series started with a soul but now it's just a soulless empty option world with icons filling the game map. They make their own games so grindy so that they can see the XP boosters to even the odds. As a gamer in my 40's all I want to know is when did gaming just stop being about Fun and all about greed. Double XP weekends selling cosmetics and dances. I use to be a big sports game guy when I was in my 20's the other day I wanted to play NBA 2k and after doing some deep research I realized the best NBA game was 2k17 and NBA 2k25 at $9.79 I couldn't pull the trigger on that 2k25 for how egregious the micro transactions were. So much of the fun is behind a pay wall
When you don't disclose units sold... and your stock goes down... how is this doing well?
but but 2,000,000 players...
Ubishit burned so many bridges with fans, releasing filler dreck that was purposefully designed to push you towards micro-trash-actions. It didn't have to be this way, they could have respected us players more, instead of making players waste countless hours of their life just to see stupid "experience points and resources numbers go up" and attempt to profit off us in such a disrespectful way. I stopped supporting them a long time ago. Keep burning bridges, and keep burning your company from within.
They full of shit.