Opiate said:Look, we don't know exactly how many copies of Dead Space were sold (vs shipped). We don't know how many were sold at 20 dollars instead of 60. We don't know what their initial expectations were: were the expectations around Turok level? Or were they Assassin's Creed level? We don't know the answers to any of these questions.
But here's what I can tell you: in the last 18 months, EA has lost nearly 1.3 billion dollars. That's 1,300,000,000 dollars, for those who need the figure emphasized. I'm not sure how much Dead Space and Mirror's Edge were supposed to sell, but clearly something EA is doing is going disastrously wrong, and we can confidently say it isn't Madden or Fifa.
Raw64life said:Numbers that aren't in the OP so far...
Rough LTDs:
PS3 BATMAN: ARKHAM ASYLUM: ~500K
360 BATMAN: ARKHAM ASYLUM: ~505K
Tiktaalik said:The difference between what EA was doing previously and what they're doing now is a big deal in my opinion. Before when Catwoman and James Bond were huge bombs those were just huge bombs. Now, spending a crap load of money to develop new IPs like Dead Space, Mirrors Edge, Dante's Inferno, EA Sports Active etc, that's not just money out the window, this is money being invested in new properties that will pay out for years to come. This is building a fanbase that EA can improve on with subsequent titles and these are IPs that EA can spin off into movies, which is another thing they're doing.
As I said earlier I expect within the next quarter or the quarter after that for EA to start posting a profit again, because I think a lot of their losses have to do with a fundamental shift in their business. If they keep bleeding money well then there's additional problems that still aren't being solved but I think they're on the cusp of a huge turn around.
poppabk said:But the game industry and the video game industry don't work the same, there is no game equivalent of Juno
Juno - 7 million budget - 230 million box office (WW)
Dark Knight - 185 million budget - 1000 million box office (WW)
Lets just say that Halo:ODST had an overall budget of 20 million and is our gaming equivalent of Dark Knight
Halo:ODST - 20 million budget - ~90 million revenue (US)
XXXX - 760k budget - ~20 million revenue
Fill in the blank.
Juno isn't the only example of a movie that has had that kind of success on the back of a low budget based on word of mouth or critical acclaim either.
Acid08 said:Let's see if more PS3 games appear in the Top 10 now.
user_nat said:What happened to Wii Play anyhow.. did people just stop buying Wiimotes?
Opiate said:If you're talking more generally -- and including the big boys -- I've provided strong evidence to the contrary. The Financial Reports of all the listed Publishers. If you have actual evidence to support your position, and not just "I'm at a game studio," I really would be eager to listen. I've certainly kept a very open ear to what Mario and Warm Machine have to say, for example, but that's because they provide actual information.
singularity said:Here's the problem with this analogy. Most films, and indeed film studios, lose money. Let me say that again most films lose money. The entire studio model is dependent on the one big hit. Every year the studios try to create the one, big, blockbuster that'll make them enough money to pay for all their movie failures. It's the same with the videogame industry. It's the same with books. It's the same with every publishing media. Most things fail.
typically one doesn't need to cite common factFlying_Phoenix said:Do you have any sources to back this up?
but if it is so common, it should be easy to citegrandjedi6 said:typically one doesn't need to cite common fact
grandjedi6 said:typically one doesn't need to cite common fact
ksamedi said:I'm really curious what these guys spend their money on. The games they produce seem to do decent at retail. They must be a horribly inefficient company to lose money on those sales.
However, whereas previous console owners are not necessarily buying games at any given time, it seems almost assured that someone who has just bought a console will definitely buy at least one game. Maybe even a fair bit more than that, if you believe there's this big glut of people that are all about the PS3's great exclusives and have just been waiting for the price to be right.DeadGzuz said:Why? the top 10 is not based on new console buyers. The PS3 is 18.7% of the market (PS360Wii), so it should get no more than 2/10 in the top 10.
Flying_Phoenix said:Do you have any sources to back this up?
If only that was actually true :lolJohn Dunbar said:but if it is so common, it should be easy to cite
Well, for example, television shows often fail to survive, let alone provide a profit. Thus the TV industry has to rely upon DVD sales, the few big hits and toy sales (for kid shows) in order to stay afloat.Flying_Phoenix said:I wasn't referring to the film part, but more so when he stated that all major media as well.
The film industry relies on its sure thing blockbusters like Transformers to pay the bills and pay for the smaller releases, the odd one of which will become a blockbuster like Juno or My Big Fat Greek Wedding providing massive returns.singularity said:Here's the problem with this analogy. Most films, and indeed film studios, lose money. Let me say that again most films lose money. The entire studio model is dependent on the one big hit. Every year the studios try to create the one, big, blockbuster that'll make them enough money to pay for all their movie failures. It's the same with the videogame industry. It's the same with books. It's the same with every publishing media. Most things fail.
I love Harmonix, but remember the early Playstation 2 games? Frequency and Amplitude, I love them. Many other people did too. But they didn't sell well. Harmoix was just *surving* through the generation. Then they launched this little thing with a plastic guitar. No one bought it. Seriously. No one bought it. It was poorly distributed, hard to find, and in low stock. But the people that did get it loved it, talked about it, got their friend to play it, and it started to sell. And sell. And sell. And now they have two titles in the Top 10.
Sure, the videogame industry is much more reliant on franchises and sequels than film, but if that's not equivalent to the likes of Juno or whatever other quirky, independent film that makes many times its profit over its lifetime, I don't know what is.
ZAK said:However, whereas previous console owners are not necessarily buying games at any given time, it seems almost assured that someone who has just bought a console will definitely buy at least one game. Maybe even a fair bit more than that, if you believe there's this big glut of people that are all about the PS3's great exclusives and have just been waiting for the price to be right.
I'm curious about this too. Last I heard (and it was quite a while ago), PS3 hardware was bonering the fuck out of the marketplace's pants, but software sales hadn't moved much. Any new data?
grandjedi6 said:If only that was actually true :lol
Well, for example, television shows often fail to survive, let alone provide a profit. Thus the TV industry has to rely upon DVD sales, the few big hits and toy sales (for kid shows) in order to stay afloat.
And, as singularity said, the same is true of video games. Except video games don't have DVD sales and such to help support them (though one could make the argument that downloadable content is becoming the industry's safety support). Also you have to remember that for every 1 game released, there's probably like 3-4 games that were canceled and never saw the light of day, yet still cost the company money and time to work on.
Opiate said:but clearly something EA is doing is going disastrously wrong, and we can confidently say it isn't Madden or Fifa.
grandjedi6 said:If only that was actually true :lol
OK. Here's a couple I could find in short notice.Flying_Phoenix said:Do you have any sources to back this up?
It hasn't turned out to be a sensible investment. Gill calculates the odds of losing all your money on an independent film at 99.95 percent. Most of those 5,000 movies, in his words, are "pre-ordained flops," made by people "who forgot that their odds would have been better if they'd converted their money into quarters and taken the all-night party bus to Vegas." First of all, there's the simple fact that the market can't support more than 10 percent of those movies in a given year, and probably a much lower ratio than that. In 2007 a reported 603 films were released theatrically in the United States, the vast majority of them coming and going almost unnoticed. Everyone in the business agrees that number is unsustainably high; a more reasonable level might be 250 to 300.
Harvard economist Anita Elberse wrote a piece debunking the hypothesis of Chris Andersons anti-blockbuster blockbuster, The Long Tail (which Bob Miller acquired at Hyperion for a mere $550,000). Elberse led off with a tidbit from a study of Hachettes Grand Central Publishing. Of 61 books on its 2006 list, each title averaged a profit of almost $100,000. But without the top seller, which earned $5 million, that average drops to $18,000. �A blockbuster strategy still makes the most sense,� she concludes.
[...]
So publishing ends up looking like a mini-Hollywood, but even more dependent on sleeper hits and semi-reliable franchises. Dan Browns The Da Vinci Code buoyed Random House tremendously in the past five years, but with Browns sequel delayed, sales were down 5.6 percent last year. When Simon & Schuster announced that sales were off almost 10 percent in the first half of 08, it cited the 2007 success of The Secret as the reason for the relative shortfall. Other companies did better�but on the strength of surprise hits. Sales grew 11 percent both at Penguin and at Hachettes U.S. division, largely on the backs of two authors�Oprah-touted self-helper Eckhart Tolle at Penguin and Stephenie Meyer at Little, Brown.
poppabk said:The film industry relies on its sure thing blockbusters like Transformers to pay the bills and pay for the smaller releases, the odd one of which will become a blockbuster like Juno or My Big Fat Greek Wedding providing massive returns.
My Big Fat Greek Wedding brought in roughly a third of what Dark Knight brought in, does anyone really think that any game with 1/40th of Halo3's budget could bring in one third of Halo3's revenue? You are talking selling a million copies at the full $60 price with a budget of maybe a million dollars if we are being generous just to match Halo3's opening day.
PS Rumor has it that MTV were losing money on every copy of Rock Band 1/2 sold http://weblogs.variety.com/the_cut_scene/2009/02/rock-band-is-losing-money-for-mtv.html
You haven't seen a good source on it because the best sources are offlineJohn Dunbar said:aye. very few things are more dangerous than a "common fact" that isn't actually true*.
*i have no idea is this particular common fact true or not, just that people always say it and i've never seen a good source for it.
grandjedi6 said:You haven't seen a good source on it because the best sources are offline
John Dunbar said:aye. very few things are more dangerous than a "common fact" that isn't actually true*.
*i have no idea is this particular common fact true or not, just that people always say it and i've never seen a good source for it.
singularity said:OK. Here's a couple I could find in short notice.
http://www.salon.com/ent/movies/btm/feature/2008/06/24/indie_death/index.html
Focuses mostly on "independent", but you can draw parallels to small to independent game developers quite easily
Here's a story about the book publishing business
http://www.printthis.clickability.c...//nymag.com/news/media/50279/&partnerID=73272
Flying_Phoenix said:I have taken mass comm classes and it's definitely true for the film medium. There's no way film companys' can only make a profit through the theater. You can't have something that was budgeted for $200 million and expect to recoup when you're only getting like (just pulling numbers out of my ass) 10 or 20% of $8 ticket sales. The profit comes when you release the DVD, video rentals, put it on HBO, and allow it to show on TNT three years down the line.
Other than Bejeweled I doubt any of those games had budgets below $1 million, Nintendo's quality and painstaking attention to detail comes at a price I think.Opiate said:It's actually far more common in video games than it is in films. Not only can can games with far smaller budgets match one third the revenue, they can match 1/1 the revenue: Nintendogs did exactly that. If Brain Age didn't, it came close.
The original Sims. Wii Sports. Wii Fit. Bejeweled.
One more for good measure.Flying_Phoenix said:Do you have any sources to back this up?
PistolGrip said:Not if you count worldwide Japan and Europe can easily pick up the slack..
elrechazao said:Hey look, a sony fan who feels the need to point out worldwide sales in an NPD thread. That never happens.
Hundreds, huh? Well, I would still think there'd be a pretty big concentration on several key titles. But whatever, I'm still especially interested just to hear the totals.John Dunbar said:the software sales from the ~500,000 new ps3 owners are divided between hundreds of games. combined with the fact that there really weren't many big releases this month, it's not really surprising there isn't any major shift in software sales against systems with userbases of many millions more (also note that it's not like 360 and Wii had no new owners this month).
Here's a good piece on movie financing (this is actually part 3 of the series, but this one mostly deals with revenue)John Dunbar said:now i'm no expert (although i do post on a video game message board), but i've been under the impression studios get at least 50% of box office. i've even seen mentioned that the studios' share for the opening weekend is as much as 90% (at least for the big releases) and cinemas make most of their money by selling popcorn and other crap.
Um the legend sucks, especially when the background is white and the Wii's key is white....Leondexter said:Graphs
Raw64life said:Numbers that aren't in the OP so far...
September 09:
WII WII FIT W/BALANCE BOARD : ~135K
WII MURAMASA: THE DEMON BLADE: ~35K
WII DEAD SPACE: EXTRACTION: ~10K
PS3 THE BEATLES: ROCK BAND: ~130K
PS3 NINJA GAIDEN SIGMA 2: ~40K
360 BATMAN: ARKHAM ASYLUM: ~200K
NDS KINGDOM HEARTS 358/2 DAYS: ~200K
NDS SCRIBBLENAUTS: ~195K
PSP PERSONA: ~25K
PSP GRAN TURISMO: ~20K
-----
Rough LTDs:
WII WII FIT W/BALANCE BOARD : ~8 million
WII WII SPORTS RESORT: ~1.7 million
PS3 BATMAN: ARKHAM ASYLUM: ~500K
PS3 MADDEN NFL 10: ~915K
360 BATMAN: ARKHAM ASYLUM: ~505K
360 MADDEN NFL 10: ~1.2 million
-----
Hardware LTD:
PS2: ~44.6 million
NDS: ~33.3 million
Wii: ~21.6 million
360: ~16.3 million
PSP: ~15.7 million
PS3: ~8.7 million
Man, the Wii is doing so poorly that its not even charting on the legend. :'(Leondexter said:Launch aligned U.S. Sales:
user_nat said:What happened to Wii Play anyhow.. did people just stop buying Wiimotes?
Wii Sports Resort does NOT come with a remote.kkaabboomm said:wii play was a wii remote w/a $10 game.
now there is a wii remote, wii motion plus, AND a game for $50, or TWO wii motion +'s, a wii remote, and a game, for $60.
wii sports resort killed wii play. anyone who wants an extra controller is going to get wii sports resort
a Master Ninja said:Wii Sports Resort does NOT come with a remote.
Those movies are damn near the same as the SAW movies. Madea Goes to Jail made almost if not 100mil+ at the box office.Boombloxer said:Tyler Perry films (front-loaded, low-budget).
markatisu said:Gears of War
Assassins Creed
Dead Rising
EA Active
Left 4 Dead
I can go on if you really want to play this game, your qualifer for total unknowns is very open to interpretation
They were well known before release because the companies behind them marketed them; which is not the case of EA games. EA games selling like shit is EA's fault (as I said before, they are not thinking of customers when making their games, no matter how great those are, and the marketing was insufficient...).JGS said::lol I thought all of those games were well-known except the Wii title of course.
JGS said::lol I thought all of those games were well-known except the Wii title of course.