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

Episode 487: Three Hour End of the Year ExtravaganzaEpisode 487: Three Hour End of the Year Extravaganza

It’s the last Gaming Podcast episode of 2018, and it’s three hours long! Well, it’s to make up for the fact we won’t be doing one next week. There are only two news items, but the entire bulk of the episode is our Game Awards for 2017, and we took a different tack than most sites and podcasts by inventing our own Awards Categories!

The news we do discuss include:

  • Soulcalibur 6 finally brings the tale of swords and souls to PC
  • The Witcher 3 Xbox One X update could add support for HDR displays

We also discussed the game we’re looking forward to the most in 2018 — let us know which one you are interested in!

Jack Thompson Says Take-Two Chairmen Must Repent His SinsJack Thompson Says Take-Two Chairmen Must Repent His Sins

The washed up Jack Thompson, also known as the thorn in the side of Take-Two has gone off the deep end. Originally, Thompson would do everything in his power to bring the negative press (and lawsuits) to Take-Two for Grant Theft Auto, Man Hunt and any other game he didn’t like.

Hot Coffee!Rather than allowing parents to utilize the ESRB rating, Thompson found it in his Christian heart to pursue game companies like his own personal holy war. Luckily he’s lost all his power because people finally realized he’s a lukewarm loon with a one track mind. But wait, there’s more!

“Mr. Zelnick’s problems at Take-Two are miniscule [sic] compared to the eternity of punishment that is coming his way unless he repents and accepts Christ as I did 32 years ago this month.” (1up)

When the law doesn’t work out for him, he takes it into Gods hands. He fires right over at the chairmen, “there is no blessing for Strauss Zelnick, who is not a Christian, when he gets what he deserves…”

The game industry was doing well before Jack and it will thrive without him in the way as well. One man cannot change the world, especially when that one man tends to act like a raving lunatic. Parents must guide their children down the right paths, show them life’s possibilities and understand what content is rated for what age. We’ve figured out how to handle movie ratings, we’re sure adults will figure out the ESRB rating as well.

We give too little credit to parents when it comes to making decisions for their children. If they cannot make the right decision on allowing a six year old to play Halo or Resistance, then can we actually trust them to keep a child out of R rated movies or finish their dinner before getting a snack?