Originally Posted by blazeaglory
I kind of agree but developers make ****LOAD of cash for their games...
Like I said, developers make hundreds of millions of dollars when they release a new game, depending on its popularity...
This is the falsehood I think most consumers believe.
"Developed make boats loads, I need to be in it for myself."
This is a FALSE understanding of the market. There are major game titles that DO in fact carry a massive market and DO in fact make a boat load of money. The problem is those AAA games also have massive costs to produce. Further, the producing companies also bank-roll OTHER games, most
do not pull down boat loads of cash. The reason they bank-roll such games is to hopefully discover the next popular title such as CODBLOPS etc.
Here is an example, THQ one of the big four
companies went belly up this year. This happened because of development delays and funding line disruptions. With that said, here is a bread-down of the assets that was sold off:
Relic Entertainment (Company of Heroes, Warhammer 40,000: Dawn of War) went to Sega for $26.6 million , with Zenimax Media (owners of id Software and Bethesda) kept as reserve after bidding .3 million less.
Evolve, the new property from Turtle Rock Studios (co-creators of Left 4 Dead) was purchased by Take-Two Interactive, for a long time THQ’s closest competitor in the second tier of US publishers, for $10.894 million. Turtle Rock had perhaps hoped to escape notice, as their game was in its early stages, and had put in a $250,000 bid for the property themselves.
The Homefront IP – based on John Milius’ concept of a United States under occupation – was purchased by Crytek, whose UK division had ben contracted to produce Homefront 2. The $544,218 fee seems low for a banner IP, but Homefront‘s underperformance in the market would have affected the cost: one is buying an IP, but also a considerable marketing challenge.
Publishing rights for South Park: The Stick of Truth, which is preparing for launch on March 5, was purchased by Ubisoft for $3,265,306
THQ Montreal – the first organically-grown (rather than acquired) THQ studio in North America, and its largest, was also purchased by Ubisoft, which already has a significant presence in Montreal. With no titles in the works, this can be seen as an opportunity to acquire a lot of talent relatively cheaply at $2.5 million.
Link to Forbes article
The reality is that companies like GameStop have been making boat-loads of money, yes boat loads more than many game companies by buying low and selling high the intellectual property of others. They are using the dinosaur that is physical media distribution to sell a good that does not degrade or depreciate aside from market need. It's a brilliant cash cow, but it's time is coming to an end. They need to find another market to build towards and FAST.