Owyn_Merrilin said:
The point is, the costs involved in videogames are significantly lower. If they can't recoup them without having to introduce crap like Project $10, then their business model is unsustainable, and they need to find ways to cut costs, instead of gouging and driving away customers. They might start by charging less for their games, in order to get more sales. I have never in my life paid $60 for a game, but I've bought plenty of new games for $20 -- which is a comparable price to a freshly released DVD. The original excuse for the high costs was that cartridges cost a lot to make -- and they did. However, charging $40 or more per game hasn't been necessary since the PS1 came onto the scene. Costs have gone up, but not enough that the unit price is anywhere near what it was in the cartridge days -- let alone higher, which is what the $60 price tag would imply. Face it, they're ripping us off.
Significantly lower...to movies? yes. But so are the sales. They have been recouping the losses so far, but as the economy goes down hill more and more people are buying used, decreasing sales. That makes it harder to recoup the losses, because used games being cheaper is expected, and it'll happen. So why buy new if you get the same game for much cheaper in a month or two?
Alright, so let's do some math here. You mentioned you bought plenty of new games for 20 dollars. Okay, so.
50 million dollars[footnote]that's still quite large.[/footnote]. that'll be our budget.
50,000,000/20=2,500,000 units.
Have you ever sold 2.5 million of
anything?
Now say, 50,000,000/60=84,000 units
That's much more reasonable isn't it? 50 is easy, so i'll let you do that one in your head.
Now, consider that 84,000 units is still a lot. and if it was back before 60 dollars was normal (That price hike, I was against.) 1,000,000 units sold meant you'd break even with a budget like that. Which is a lot of units sold. Say out of that 1,000,000 you only sell 200,000 units, and the rest of the sales ever are used sales.
200,000*60=12,000,000
50,000,000-12,000,000=38,000,000
38 million dollars in losses. now if we consider that the other 800,000 sales offered up 10 bucks. that's still 30 million in losses and the game would have to make money in other ways, or that's just an acceptable loss, they'll make it up with another franchise. That's not happening. So to be a hit, that's just breaking even with that budget, or going a little above.
Lets say we have a movie that costs 100 million, at the box office the movie pulls in 30 million in losses, 70 million. That's okay, in DVD sales in makes 50 million. They have a net gain. Then a network wants to give them a million or two to legally air the movie to the public, then they release the special directors cut platinum edition and it sells total for another 30 million.
that's 70,000,000+50,000,000+2,000,000+30,000,000=152,000,000. That's some great profits. even with the costs of putting it on DVD. The other sources of income -really- help the movie there. It cannot work that way for games, so they're finding other ways to regain lost profits. Movies don't have to care, even my bullshit movie can make profits.