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by RobLach
2842 days ago
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That’s not true at all. Video Games have been growing with such a strong trajectory that what consumers expect at a bare minimum in a new release is a large increase in risk for a game publisher. For example Super Mario World was made by less than 20 people and sold for $69.99 at launch in 1990. That’s nearly $140 in today’s dollars. Now take into account that a modern AAA game has at a minimum a 150 person staff, with the more content heavy games breaching 500 people; if your game is a flop your studio is dead despite having years of successes before. The margins at $60 don’t provide enough cushion so publishers are continuously scrambling for extra revenue they can get away with before consumer backlash. The current model is very fragile and not entirely sustainable. It exploits the passions of recent graduates by giving them salaries 30-40% below market only because they’re working on games, with the work being not at all different than working on spreadsheet software except for having serious crunch-heavy deadlines. The attrition rate over 5 years is over 70%, which also leads to those who merely didn’t leave instead of the most qualified being in leadership positions which makes any changes to processes very difficult. |
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$60 is also a bit of a red herring, since $60 is the base price for a game - when you start throwing in all of the special features, the price of a game climbs to over twice that amount. And that doesn't even cover the microtransactions not included in the gambling category - 4-5 expansion packs each the price of an indie game, skins, poses, voice lines, etc.
Let's not forget that EA have openly stated to their shareholders that not having loot boxes in their games doesn't affect their revenue. Either they're lying to their shareholders, or to us. I wonder which one it is.
These companies are raking in tens and hundreds of millions of dollars in profit. That's not the sign of a fragile market.