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 765: Indy New GameEpisode 765: Indy New Game

The guys talk about Skate Story is finally releasing in December, Indiana Jones and the Great Circle is getting a New Game+ mode and some new duds in a free update, Might and Magic: Olden Era is delayed to 2026, a Minecraft Movie sequel is coming in July 23, 2027, and Cities: Skylines 2‘s big Bridges and Ports expansion is finally almost here.

News includes:

  • Helldivers 2 developers blame HDDs for the PC version’s file size & delayed updates

Let us know what you think.

Episode 449: More Technical DifficultiesEpisode 449: More Technical Difficulties

For the second week in a row, the podcast has had some technical issues. This time the problem was less, but there are still present. Part of the reason is that the mic is subpar, the other is that the PC it’s being recorded on has a damaged fan. That said, this week’s episode (and the unreleased episode) were really good. The unpublished one will be issued at some future date when we all need a break (maybe over the Christmas week.)

This week’s episode includes:

  • Assassin’s Creed 3 goes free, murders Ubisoft servers in the process
  • After Blizzard shutdown, legacy World of Warcraft server returns this month
  • Halo 5: Forge custom game browser is launching on PC this week
  • Report: Nintendo Switch will get GameCube Games

Let us know what your favorite 2016 game has been.

Episode 407: Third Time’s the CharmEpisode 407: Third Time’s the Charm

If you’re wondering where the podcast has been, it’s been in technical hell. Twice the podcast was recorded each week, and both times there were serious technical issues. This time, we’ve got it right, and even have Paul dropping by to discuss his new book, “Gaymers: the Difference a ‘Y’ Makes: How (and Why) to Make Video Games LGBT Players Care About“. Actually, it’s mostly dominated by a discussion of an episode of My Little Pony: Friendship Is Magic.

Otherwise, the news items include:

The Question of the Week: “Who is your favorite superhero?”