Post: Here's how much it cost to make a video game in 2009
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01-15-2010, 10:48 PM
#1
ƒrizz
Banned
Interactive entertainment media industry analyst Wanda Meloni is joining the 2009 financial weigh-in party. In her breakdown of the ups and downs of the year, she sheds some light on just how expensive it is to make games.
For previous console generations, she says, the cost of development has been between $3 - 5 million per platform. Nowadays, however, she estimates that the average cost of making one game for one platform is $10 million while multiplatform releases clock in at $18 - $28 million.
Here's how much it cost to make a video game in 2009
Developing games for Facebook, the iPhone and other social media or mobile gaming platforms is far cheaper thanks to lower production costs. Meloni puts the cost of developing social media/casual games at $30 - $300 thousand on a six month development cycle and mobile/iPhone games at $5 - $20 thousand with four months of development.
Meloni estimates that in 2010, more developers will be experimenting with tools to streamline development, switch up distribution models and ways to include microtransactions. The key word, she says, is ROI -- "return on investment."
01-17-2010, 05:51 PM
#11
xinfectedsoulx
Daddy's home.
Originally posted by rjive
Thats not true. Gamestop may make more profit on trade in however typically a company doesn't touch a product (like MW2) unless they're going to make at least 30% profit. It is true that retailers have loss leaders to get you into the stores... those products are those such as the "5 at this price" items.
Check a companies 10k. Look at ATVI 10k for the last few years and you'll see what it costs ATVI to make the game.
Check a companies 10k. Look at ATVI 10k for the last few years and you'll see what it costs ATVI to make the game.
So you are saying that if a game costs £45 new to buy, the company won't buy it unless they get £13 profit from the game, making it £33 for the company to buy. Activision will want more than £13 but lets say they want the 30% too taking it down to £20. Meaning the company has £20 for themselves to cover the cost of advertising, wages, bills and the actual making of the game.
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