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 703: Shadow of WarEpisode 703: Shadow of War

This week, TJ finally decides to play Middle Earth: Shadow of War, and there is a debate on whether he should play Shadow of Mordor or just watch a Let’s Play of the game first.

The news includes:

  • Cities: Skylines 2 DLC has been delayed and weekly patches have come to an end
  • Warner Bros says Wonder Woman won’t be a live-service game
  • Knights of the Old Republic remake reportedly not in active development
  • Insomniac’s Wolverine reportedly due 2025

Let us know what you think.

Episode 281: Weeyoo SeepeeyooEpisode 281: Weeyoo Seepeeyoo

In this long episode of Gaming Podcast, the show runs long because of the tons of entries made to win a Steam code of XCOM: Enemy Unknown. Paul gets upset at Jonah for a topic about the Wii U, while Dan is delighted to say the F-word again. The latest Gaming Flashback is about the oldest coin-op arcade game from 1971, Galaxy Game.

The news includes the following items:

  • Sony drops 3D support, saying customers rejected it
  • Oddworld creator to EA: “F— you very much”
  • Wii U launch developer complains of lackluster CPU
  • Mists of Pandaria sales below expectations according to analyst firm
  • Microsoft enhances security at Xbox offices to stop next-gen leak

Finally, Paul eulogizes Nintendo Power, which is closing its doors after 24 years.

Episode 522: Civving UpEpisode 522: Civving Up

This week’s episode is full of industry news in the wake of The Game Awards. There wasn’t many news items but there was plenty to talk about with the Awards, especially with this week’s Gaming Flashback, Unlimited Adventures.

This week’s news items include:

Let us know what you think.