Owyn_Merrilin said:
If they have budget problems like that, econ 101 says they should go out of business, because they aren't turning a profit. And the price to make a AAA game has nothing on the price of a blockbuster movie; the only one to even come close was GTAIV, at $100 million -- roughly the cost of a mid-sized blockbuster. And I know, you're going to say something about alternate revenue streams, but the truth is, no matter what revenue stream you look at for films, they don't charge more than $25 per copy/viewing, and that's on the extreme expensive end. If film companies can turn a profit at $11 a ticket and $20 a DVD, game companies can afford to drop their prices lower than $60. Heck, as the various Steam sales have shown us, dropping prices raises their profits -- someone was quoting a figure a while back, where a game halved the price, and quadrupled the sales. The game companies are idiots if they think people have $60 to pay per game in this economy -- or any other one, really. That's a big chunk of change to anyone who lives in the real world.
Yes, I will mention alternative revenue streams. Films have the most. It's not just theaters and DVD sales. Granted theaters are the only places to watch the movie, so everyone has to pay (or pirate the movie from some leaked version.) it's not just 1 million people, movies are much more widespread. So you get...100 million. Some of them will see it twice or more.
DVD sales cash in on the theatrical release, as it slows down, they release it on DVD, and sales shoot up again as people who enjoyed the movie then pay again to watch it at home.
That's almost double the revenue. (if a game made double the revenue, we wouldn't be here.)
Now, TV syndication, you take a TV station, or a network. They want to show your movie on their channels, They pay you 100 million dollars for the ability to show your movie for X number of years. This happens...5,6 ..maybe 10 times for the movie. That's triple the revenue.
That's why movie budgets are so large. Game budgets are much smaller...to reflect the much smaller amount of profit they make.
As for your steam sale statistic, that can also be attributed to the phenomenon i mentioned before. You see something you're interested in for 60 bucks. You say "No sir, i don't have that kind of money" later you see it for 40. You are all over that because that's much less than 60. If you saw it initially for 40, you wouldn't think it was such a good deal, and might not buy it.
You guys are getting tiresome with comparing this to other forms of sales and media. They're not the same, They shouldn't be treated the same. The logic is almost explosively bad.