Sure, everything's all sunshine and daffodils in the ever-expanding video game market, right? Wrong. Dead wrong, mister. While stories to that effect might seem to inspire hope in the gaming industry's seemingly impervious leaders, indie developer Krome's CEO Robert Walsh thinks the gaming press has missed out on an important fact impacting the modern development scene -- developer's budgets "have probably doubled or tripled during the console transition."
To put Walsh's entire argument (which he made in an interview with Develop) into simple terms, the gaming industry is raking in a bajillion dollars annually, but the current console generation has made developing games astronomically more expensive than it has been in the past. Like, a hojillion dollars more expensive. Seeing as how a hojillion is more than a bajillion (of course), developers aren't really seeing a major financial boon from the burgeoning industry. Which really sucks for them.
Reader Comments (33)
Posted: May 26th 2009 7:28PM (Unverified) said
.....and then there's Nintendo's systems. Like iPhone/iPod apps, it's really the only route to develop and turn a sizable profit.
Posted: May 26th 2009 7:34PM Mr Khan said
This is why 3rd party support is so strong for the Nintendo systems, because despite their apparent "failures," most projects are guaranteed to profit, even quality games, you're still talking about a budget a quarter of the cost of a "quality" (non-budget) PS360 title.
Obviously the industry moved forward faster than was natural
Obviously the industry moved forward faster than was natural
Posted: May 26th 2009 7:35PM dogmaticatheist said
Game budgets need to decrease, by a lot. This way developers will be forced to innovate and try to come up with compelling reasons (such as a good story) to play a game, rather than just throw money at a half-assed game with flashy graphics and no substance.
It's almost exactly like the movie industry in that way. As budgets increased, movie quality went way down.
It's almost exactly like the movie industry in that way. As budgets increased, movie quality went way down.
Posted: May 26th 2009 7:37PM Saria the Cat said
More movie money = more explosions in my eyeballs = more quality.
Obviously this is the way it works. You may want to check your explosion meters, they might be on the fritz.
Reply
Obviously this is the way it works. You may want to check your explosion meters, they might be on the fritz.
Posted: May 26th 2009 8:15PM (Unverified) said
Movie quality didn't really decrease, you're just watching too many crappy ones and not looking hard enough. Try and find the hidden gems, there are a lot of them.
Reply
Posted: May 26th 2009 11:57PM mynk said
uh, game bugets are comparatively astronomically low on both iphone and wii. do you see much higher quality games than xbox and ps3?
i think its more than logical that when a developer has invested enough money to sink themsleves into bankrupcy on the failure of a game, they better make sure that the game isnt a failure. the only way to ensure that is to make a good game.
not only that, but it gives them more freedom to make better games on higher budgets. hence more money = better games, not worse.
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i think its more than logical that when a developer has invested enough money to sink themsleves into bankrupcy on the failure of a game, they better make sure that the game isnt a failure. the only way to ensure that is to make a good game.
not only that, but it gives them more freedom to make better games on higher budgets. hence more money = better games, not worse.
Posted: May 26th 2009 7:35PM Saria the Cat said
Best graph ever.
"If you look over at these lines, they are intersecting. Which means statistically that something is going up and going down and right here they --- is that BATMAN?!" *runs away*
"If you look over at these lines, they are intersecting. Which means statistically that something is going up and going down and right here they --- is that BATMAN?!" *runs away*
Posted: May 26th 2009 7:45PM Saria the Cat said
The conversion rate from money to happiness is 1:1.
And, yeah, I am pretty sure this graph is supposed to be a joke and I love it.
Reply
And, yeah, I am pretty sure this graph is supposed to be a joke and I love it.
Posted: May 26th 2009 7:41PM (Unverified) said
Well I think gaming is safe until it reaches a kajillion dollar difference.
Posted: May 26th 2009 7:45PM mr nimblewick said
We've already seen the effects of this play out. More and more developers will be shuttered.
Posted: May 26th 2009 8:36PM DudemanJones said
Could be a good thing though. Maybe a 2nd gaming crash is what we need. Clear out the rabble so the actual good teams could put effort into good gameplay again instead of flash to draw the discerning gamers eye.
Worked once...
Reply
Worked once...
Posted: May 26th 2009 7:47PM Railgun said
There are tonnes of games that sell around 50k units and make profit. You would have to over spend and greatly undersell to lose money.
Posted: May 26th 2009 8:04PM Railgun said
Well it obviously depends on the games, but the games made by Enterbrain (Amagami, Kimikiss, etc) are profitable and sell less than 100k units. If a company spends more to develop a game than necessary and it tanks, or a big budget game only sells 50k copies, then obviously they aren't going to turn a profit. But I assume Krome is a smaller company and would be making lower budget games.
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Posted: May 27th 2009 9:05AM Dummy00001 said
@Bajeena: "If a company spends more to develop a game than necessary and it tanks, or a big budget game only sells 50k copies, then obviously they aren't going to turn a profit."
For the fuller picture, add here the gamer blogs and forums all loudly complaining about the flood of "shovelware".
Reply
For the fuller picture, add here the gamer blogs and forums all loudly complaining about the flood of "shovelware".
Posted: May 26th 2009 8:06PM ShadowModder said
Uh... I see that "developer happiness" increased during the 2000-2005, which was the time the PS2 was around until the X360 came out... where it starts to fall...
Just what I see.
Just what I see.
Posted: May 26th 2009 8:18PM Railgun said
@rowd149
They are dating sims, and no they aren't graphically heavy. Which is what I'm saying, you don't need to make a high budget game to be profitable. An indie developer like Krome isn't going to be making graphic heavy, state of the art games.
They are dating sims, and no they aren't graphically heavy. Which is what I'm saying, you don't need to make a high budget game to be profitable. An indie developer like Krome isn't going to be making graphic heavy, state of the art games.
Posted: May 26th 2009 8:20PM (Unverified) said
There are more opportunity for indie developers now than ever before. Time to quit that salaried position and go make your own.
Posted: May 26th 2009 8:24PM BoBsS said
This was inevitable
1. PS3/360 Development kits cost a lot more than they did for the PS2/XBox.
2. Programing the kits and developing game takes longer which means more salary has to be paid to the programmers for the longer period of development.
3. Legitimate software coders (none of that DeVry game programming school shit) are getting more expensive because they want higher pay for a job that is harder to do nowadays (duh).
This was predicted Pre-Current gen console release and hence why the weak have been weeded out (Midway and etc.)
1. PS3/360 Development kits cost a lot more than they did for the PS2/XBox.
2. Programing the kits and developing game takes longer which means more salary has to be paid to the programmers for the longer period of development.
3. Legitimate software coders (none of that DeVry game programming school shit) are getting more expensive because they want higher pay for a job that is harder to do nowadays (duh).
This was predicted Pre-Current gen console release and hence why the weak have been weeded out (Midway and etc.)
Posted: May 26th 2009 9:05PM (Unverified) said
I'm wondering what kind of unit describes a market, an amount of money, and happiness.....
>.<
>.<
Posted: May 26th 2009 9:38PM kenofthedead said
I wish Kojima would learn this. Same for Square Enix. The more money they spend, the less fun I have with their games filled with so much that doesn't need to be there.
The entire industry needs to learn "less is more", before it's too late.
Okay, back to Plants vs Zombies I go. A fun game without much development cost, but plenty of profit to those who made it.
The entire industry needs to learn "less is more", before it's too late.
Okay, back to Plants vs Zombies I go. A fun game without much development cost, but plenty of profit to those who made it.
Posted: May 27th 2009 2:22AM (Unverified) said
Not surprised. The processors are getting more powerful, making you able to do more in a game. The graphics chips can handle more textures, polygons, and effects. That by itself makes having the best graphics more expensive. However, the 360 and the PS3 have a different development model compared to what was traditionally done for a successful gaming console. The 360 has 6 hardware threads of execution (in 3 physical cores), and the PS3 has 2 threads + 6 coprocessors available to the developers. It's very hard to use either model at 100% of all threads of execution.
I have used multicore optimized programs before, and quickly learned that some of those programs don't even go past 75% utilization on my multicore PC.
I have used multicore optimized programs before, and quickly learned that some of those programs don't even go past 75% utilization on my multicore PC.
Posted: May 27th 2009 2:55AM Vcize said
Just another example of why it's crazy when people moan about $60 games.
Given the massive inflation and development costs that have risen by thousands of percent, it's crazy that we're still only paying $10 more for games now than we were 20 years ago.
And relative to adjusted inflation, we're actually paying a LOT less.
Given the massive inflation and development costs that have risen by thousands of percent, it's crazy that we're still only paying $10 more for games now than we were 20 years ago.
And relative to adjusted inflation, we're actually paying a LOT less.
Posted: May 27th 2009 3:58PM (Unverified) said
It's not crazy. Game prices were crazy 20 years ago, and they're crazy now. Just because it's POSSIBLE to spend so much money on a game, doesn't mean we should. Movies could double their budgets, and charge $40 for every DVD or $60 for every bluray. Their budgets do NOT mean the product is worth it. I can love a $5 movie just as much as a $40 movie. What matters is the final experience. Games are created to give you a feeling. Smart people can create a powerful experience using little. That final experience is where the worth is, and NOT the budget to create it. Recognizing this is not crazy. The fact is, both developers AND gamers should be open to a wider range of methods to give us that final experience. That's the only way we'll get some sanity back to this industry. So keep complaining people. But don't complain because you're cheap. Complain because this is a nonsensical, inefficient industry too close-minded to find value in simpler designs.
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Posted: May 27th 2009 4:15PM (Unverified) said
This is all Sony's fault, they created the Cell Processor which drives up development costs far higher then they need to be. Blu-ray is another burden, 50 fucking bucks for a 50 gig disk when GE's micro-holographic technology can do it for $5!
To elaborate on the problem with the Cell, before any Sony fan-turds bitch, it uses 8 special purpose cores (each with a different instruction set) unlike all other multi-core designs which use a common core (with the same instruction set). Sony tried to force the industry to specialize in their not-superior technology so developers wouldn't support other platforms.
This is hurting all gamers, we're seeing higher development costs, longer development times but we're not really getting better games for it. The standard design used in PC CPUs for quite some time now is far superior because programmers can then work with any platform and not just one.
I play across three systems mainly (and on occasion PC) 360, Wii, and DS cause they offer me a wide selection of games but don't hurt the medium I love. I have a PS1 and my girlfriend has a PS2 but we're not getting a PS3 cause of the Cell and Blu-ray.
To elaborate on the problem with the Cell, before any Sony fan-turds bitch, it uses 8 special purpose cores (each with a different instruction set) unlike all other multi-core designs which use a common core (with the same instruction set). Sony tried to force the industry to specialize in their not-superior technology so developers wouldn't support other platforms.
This is hurting all gamers, we're seeing higher development costs, longer development times but we're not really getting better games for it. The standard design used in PC CPUs for quite some time now is far superior because programmers can then work with any platform and not just one.
I play across three systems mainly (and on occasion PC) 360, Wii, and DS cause they offer me a wide selection of games but don't hurt the medium I love. I have a PS1 and my girlfriend has a PS2 but we're not getting a PS3 cause of the Cell and Blu-ray.
Posted: May 27th 2009 11:53PM wtfitsrick said
Hi.
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