End of 100 Million Dollar Games?

Gigaom had a great writeup about how Grand Theft Auto IV marks the end of “next generation” as we know it, stating, in more words or less, the game is a failure. GTA: San Andreas sold 21.5 million copies during its time on the shelf while GTA IV has sold roughly 9 million copies as of June 7th.

Granted, the game is still on the shelves and will still get sales, but the mass of “hardcore gamers” have had their fill and either purchased it or will not. The end result? A huge tapering of sales numbers for the graphically impressive game. Take-Two spent USD $100 million to develop the game which had great opening sales records but has gone down drastically since.

Imagine the title gains them USD $30.00 per sale in profit (considering distributors get the game for roughly USD $45 to $48.00 USD), taking into account shipping of the product, marketing and all the materials that go into producing a copy, they’d have to sell a large quanity of game titles to break even, which I think they have done.

Nobody is in this industry to break even. A block buster title should make block buster profits, right? Else, why bother to spend the 100-million when a Wii title can double or triple the profits with six months of development?

“Despite being part of one of the most popular video game series of all time, the arrival of GTA IV failed to boost sales of new next-generation consoles. (PS3 and 360 are defined as “next-gen” for boasting the best and latest graphics features.) Meanwhile, sales of the non-next-gen, GTA IV-less Nintendo Wii were double that of PS3/360’s numbers combined. If Grand Theft Auto can’t move more machines, nothing can. Which not only suggests that the market for next-gen consoles has been exhausted, but that the audience for big budget, AAA next-gen titles has been tapped out, too.” (gigaom)

Well, holy crap. We’re all so facinated by the game, the graphics, the sales figures but when you sit back and do the numbers, it’s not all that impressive. This is both unfortunate and surprising because they worked so hard and received such great scores on most review sites.

Gigaom predicts this will mark an end to such block buster titles and the result will be lower budget products with more downloadable content and micro-transactions with products having a broader target audience. For instance, Rock Band, Guitar Hero and other innovative titles.

Is this the end of the block buster franchises? Are we going to see a new evolution of gaming for the next generation? Perhaps, it won’t all be about graphics but about technology, control schemes and thinking “outside the box” rather than enhancing a pre-existing franchise?

So many questions, one must wonder, what does the landscape to next-generation gaming really look like, sales figures don’t lie…

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Guitar Hero World Tour Day One DLCGuitar Hero World Tour Day One DLC

How can Guitar Hero compete with Rock Band given Rock Band’s got early drumming and vocal adopters? By promising awesome content and enforcing that fact that they too, have downloadable content (DLC). Not only do they have DLC, but they’ll have DLC on launch day.

Of course, they could have tossed some fluffy songs out there for the first day or “promised” 20 downloadable songs which we’ve yet to get confirmation e-mails on using a big registration code. But, they’re starting out strong with a serious showing. We’re talking about:

  • Rock and Roll Band by Boston
  • Hot Blooded by Foreigner
  • Jessie’s Girl by Rick Springfield

With respect to these initial songs, it’s obvious their targeting the 30 somethings looking for some nostalgic feeling (more than a feeling?!) These are considered the Classic Rock Track Pack and you can buy them individually as well.

That same week we’ll get a few more track packs and songs including “No Rain” by Blind Melon which is an epic song for all instruments. We see this being well received and will spur some initial pre-sales now that we’ve got confidence we’re getting a rocking set list and additional content in the form of DLC that’s worth buying.

Read on for their full press release!

(more…)

Episode 700: Seven Zero ZeroEpisode 700: Seven Zero Zero

The TD Gaming Podcast reaches its big 700th episode milestone, but unfortunately it covers some boring industry news about Microsoft, Activision, Lies of P, and giantesses in Baldur’s Gate 3.

The news items include:

  • Microsoft closes $69 billion acquisition of Activision Blizzard
  • Phil Spencer: Activision Blizzard games are not coming to Game Pass until 2024
  • Cities: Skylines 2 performance has “not achieved the benchmark we targeted”
  • Cities: Skylines 2 won’t use Steam Workshop for mod sharing
  • Lies of P passes 1 million units sold

Let us know what you think.

[Music by Mr SoundX Studios]

Episode 664: GTA6 LeakedEpisode 664: GTA6 Leaked

This episode was going to focus on the Toyko Game Show, but a massive leak of Grand Theft Auto 6 trumped all conversation.

Meanwhile, TJ’s mic still makes him sound like he’s in the bathroom.

The news includes:

  • Huge GTA 6 leak includes gameplay footage of robbery, Vice City locations, and two playable characters
  • Tokyo Game Show 2022 announcements

Let us know what you think.