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Killer

Member
Oct 27, 2017
2,343
In recent years, the video game industry looked like it had found the antidote to the boom-bust cycles that had long plagued the business.

Publishers focused on a few well-known titles and extended their lives through in-game purchases, expansion packs and online tournaments. Electronic Arts Inc., one of the largest players, doubled its market value to almost $45 billion last year as a new era of steady, predictable revenue seemed at hand. Then, like a wrong turn in Pac-Man, it was game over.

The biggest names in games have stumbled this year as marquee titles flopped and online spending came up short. Electronic Arts shares tumbled 13 percent Wednesday after the company confessed that some of its biggest releases disappointed. Take-Two Interactive Software Inc. fell by a similar amount after forecasting sales this quarter that were $100 million below Wall Street forecasts. The results are a reminder that video games are still a hit-driven business, rising and falling based on unpredictable consumers.

"The market is still healthy," Chief Financial Officer Blake Jorgensen said in an interview. "The bad news, it's very competitive."

Source

AAA games selling millions and they are still a "disappointment".
 

KORNdog

Banned
Oct 30, 2017
8,001
When you have 900 people working on a game trying to make everything as realistic as humanly possible over the course of 5 years, this is bound to happen. Modern video game development and budgets aren't sustainable. And it's only going to get worse next gen.
 
Feb 3, 2018
1,130
AAA selling millions is a dispointment to the investors since they instead of earning for example 52 billion they earned 48.8 billion this how the metric of success and failure is measured and every AAA company is chasing the Fortnite money so every game is now trying to be like that.

Problem with that is lack of innovation and a bunch of games that feels pretty much the same
 

AfropunkNyc

Member
Nov 15, 2017
3,958
Maybe big AAA stoods should worry on making small scale games that's meaningful and engaging, you know like what indies attempt to do. I wish ea went back to their PS2/Gamecube/Xbox roots. Its worth a try in this day and age of gaming.
 

DrArchon

Member
Oct 25, 2017
15,485
Then, like a wrong turn in Pac-Man, it was game over.
Yep, this is a business article about video games.

Also the idea of EA trying to shore up sales of BFV with its Battle Royale mode seems a bit far-fetched to me. I feel like everyone will have moved on from that game by the time they get it out the door.
 

Ploid 6.0

Member
Oct 25, 2017
12,440
Stop shooting for the moon in graphics if you can't afford it and just make good lasting games. The graphics don't need to be life like, we don't even need a new gen (4k is just way over the top. Ok for slow story based single player, wasteful for competitive skill based games). 1080 60 - 144fps should have been what these pro consoles and next gen are about.

A 4k tv was bought for the livingroom 2 weeks ago and I thought it was a waste. These consoles have support for high resolutions but they are struggling for it when they don't have to. Doing anything lower than native resolution just makes things look worse, and for PC trying to do everything at 4k require so much horsepower it just seem unnecessary.
 

Daedardus

Member
Oct 25, 2017
926
Oh no, almost the best selling game ever that came out five years ago has declining sales and their other game sold 23 million copies, how will Take Two ever recover from this?
 

hibikase

User requested ban
Banned
Oct 26, 2017
6,820
AAA games are already waaaaay past the point of unsustainability. They are too expensive to make so unless they are huge successes they can't hope to break even. It is a genuine problem.
 

Megatron

Member
Oct 27, 2017
5,445
Yep, this is a business article about video games.

Also the idea of EA trying to shore up sales of BFV with its Battle Royale mode seems a bit far-fetched to me. I feel like everyone will have moved on from that game by the time they get it out the door.

Wait, that's not out yet? Lol. I didn't know that. I assumed they released that with the game. Shit, just make that a new game at this point.
 

TheXbox

Prophet of Truth
Member
Oct 29, 2017
6,551
They aren't trying anything. They shutter studios that don't deliver billion-dollar cash cows and they rehash the same franchises over and over and over. You won't get a big hit unless you swing.
 

Deleted member 8468

User requested account closure
Banned
Oct 26, 2017
9,109
The industry is shifting and many are unwilling to change. You can't release a 'beta' with little polish in a world where games like Fortnite and now Apex Legends are incredibly well polished and free.

It's exciting times really, curious to see where things go in the next few years and in next gen.
 

Hailinel

Shamed a mod for a tag
Member
Oct 27, 2017
35,527
Maybe big AAA stoods should worry on making small scale games that's meaningful and engaging, you know like what indies attempt to do. I wish ea went back to their PS2/Gamecube/Xbox roots. Its worth a try in this day and age of gaming.
PS2/GameCube/Xbox...roots?

Roots?

EA is a lot older than that. Also, modern EA bears no resemblance to its formative years.
 

Darryl M R

The Spectacular PlayStation-Man
Member
Oct 25, 2017
9,721
We just need to level up, I'm ready for our first AAAA game.
 

Z-Beat

One Winged Slayer
Member
Oct 25, 2017
31,840
They aren't flopping, they just aren't dominating their release quarter, which makes sense when you have several releasing at the same time and your expectations are impossible.
 

Deleted member 5535

User requested account closure
Banned
Oct 25, 2017
13,656
Get some realistic expectations

Those are pretty much realistic expectations, even more for the budget of the development and marketing they have. You can't invest 100 million on Battlefield 5 and expect to only sell 5 million, you need a definitive number like let's say 10 million and if it don't surpass the number, you won't have a profit for that product.
 
Oct 25, 2017
26,560
So let me get this straight GTA V is like highest selling whatever of all time at 100+ million copies. So you're telling me if GTA VI sold 40 million, some of you'd be genuinely confused as to why it'd be considered a disappointment despite the high number.
 

Deleted member 23212

User requested account closure
Banned
Oct 28, 2017
11,225
Instead of making all of these technological advances that cost so much, shouldn't there be ways of introducing cost-cutting technology like texture generators and the like? I think those would help much more in the long-term (or maybe I'm clueless and they are already working on these).
 

kirbyfan407

Member
Oct 25, 2017
2,103
Electronic Arts Inc., one of the largest players, doubled its market value to almost $45 billion last year as a new era of steady, predictable revenue seemed at hand.

EA doubled their value in a year? Was their value in a crater a year ago, or did people completely overestimate EA's growth?
 

Darryl M R

The Spectacular PlayStation-Man
Member
Oct 25, 2017
9,721
Microsoft is supposedly making those, can't wait to see how that turn out, and if it's bad I hope Obsidian is not part of it. Imagine the wreckage, the studio will be the new Rare if they don't get rid of them.
Really? That's going to be interesting.

Maybe it will be an open world, cloud based MMORPG Halo game lol
 

ArkhamFantasy

Member
Oct 25, 2017
13,545
This is why i'm not excited for new consoles, the bar is going to get raised even higher, dev teams already way too big, games take waaaaaaaay to long to make, the business model isn't sustainable.
 

g23

Member
Oct 27, 2017
824
I wonder. Do private companies like Bethesda have an advantage in creative freedom since they don't have to adhere to stockholders and unrealistic expectations? Please educate me.
 

NeroPaige

Member
Jan 8, 2018
1,708
Do we know what the budgets are (including marketing) for these games? Doubt they release those numbers, but would satiate curiosity with how much they need to make back and how much they "flopped".
 

Frozenprince

Banned
Oct 25, 2017
9,158
Video games and the AAA space aren't going away but the budget bloat is very real and has been discussed many, many times now. The bubble is probably gonna burst and drag one of the big players down with it while the others who restructured or were smarter about it drag on.
 

Cranster

Prophet of Truth
Banned
Oct 25, 2017
9,788
The age of games requiring 15 million be considered a success needs to die.
Let's be honest, the attitude is a bit hypocritical on this forum. A lot of people on this very forum called Halo 5 a failure for selling only 5 million copies in it's first three months, even though by now it has sold more than Halo 1 and is one of the top ten most profitable games on the Xbox One.
 

SilverX

Member
Jan 21, 2018
12,996
This is just how business works. The #1 rule is to keep climbing higher in terms of revenue, profits, and basically sales. You can´t expect anyone to be happy with a product that is less successful than it´s predecessor. Even matching the success is an uneventful achievement.

If you set an ambitious goal then you need a thorough plan to achieve it. In the case of Battlefield V, they made too many missteps so there´s no one to blame but themselves
 

ArkhamFantasy

Member
Oct 25, 2017
13,545
I wonder. Do private companies like Bethesda have an advantage in creative freedom since they don't have to adhere to stockholders and unrealistic expectations? Please educate me.

If the goal was to make the highest rated opencritic game, then sure. Alot of EAs games score in the 60s and 70s but sell tens of millions of copies like Battlefront 1 and 2 did, Alot of Bethesda games get high 80s or low 90s and bomb.

Publishers like Bethesda and Square Enix cannot match the AAA output of a juggernaut like EA, Activision, or Ubisoft. This is why alot of publishers got shut down last gen.

Do we know what the budgets are (including marketing) for these games? Doubt they release those numbers, but would satiate curiosity with how much they need to make back and how much they "flopped".

The more expensive games from EA/Activision/Ubisoft/Take Two are probably 60-150 million (RDR2 probably significantly more than that), with another 100+ million in marketing, they're extraordinarily expensive.

A SF based development studio is 20k per developer per month, and dev teams are hundreds of people and takes years to make, and that doesn't include outsourcing.
 

bane833

Banned
Nov 3, 2017
4,530
Releasing shitty rehashes of the same games over and over again isn´t going to work long term.
 

ByWatterson

â–˛ Legend â–˛
Banned
Oct 28, 2017
2,302
Ubisoft has avoided this and evened strengthened its hand to ward off a hostile takeover by diversifying its lineup WHILE doubling down on key franchises.

The correct formula doesn't seem that difficult to determine.
 

g23

Member
Oct 27, 2017
824
If the goal was to make the highest rated opencritic game, then sure. Alot of EAs games score in the 60s and 70s but sell tens of millions of copies like Battlefront 1 and 2 did, Alot of Bethesda games get high 80s or low 90s and bomb.

Publishers like Bethesda and Square Enix cannot match the AAA output of a juggernaut like EA, Activision, or Ubisoft. This is why alot of publishers got shut down last gen.

Yes, but I guess what I'm trying to get at is do these lower sales but higher rated releases not hurt them as much if they had to answer to shareholders. In other words, can they risk taking the blow in commercial sales since they aren't a publicly traded company? Is this why Bethesda keeps chugging along even after commercial bomb after bomb
 

Deleted member 46948

Account closed at user request
Banned
Aug 22, 2018
8,852
The age of games requiring 15 million be considered a success needs to die.

Honestly, though, the gaming market is constantly growing. 1 million units sold 15 years ago isn't the same as 1 million units sold today. If your customer base keeps growing, metric for success also grows (probably not as much as EA's and Activision's head honchos estimate, but still).
 

Tunahead

Member
Oct 30, 2017
986
Maybe if you published some games that have ideas beyond just team sports, driving fast, and killing everybody until people get thoroughly sick of all three.
 

Pocky4Th3Win

Member
Oct 31, 2017
4,081
Minnesota
I don't see why a company like Activision doesn't change course with their COD Yearly cycle. They have how many studios? Take some of them and have them make smaller indie size games with more controlled budget and than have your tent pole studios work on the big franchises. After that you also contract out your IP with smaller indie studios, pay them to make your games and revenue split it. EA and Activision have a huge IP portfolio that they are not even touching.
 

Arthoneceron

Member
Oct 27, 2017
3,024
Minas Gerais, Brazil
I can't believe I'll say that, but the future is being f2p and pursue a mid-term between support and creative push. And, of course, staying on the ground when we talk about expectations, especially the one of the shareholders...

Well, that or just being Nintendo on 2019.
 

Freezasaurus

Member
Oct 25, 2017
56,964
These corporations are focused on growth. So if a game doesn't sell more than their last effort and hit the numbers they just pulled out of their asses, they deem it a failure.
 

PopsMaellard

The Fallen
Oct 27, 2017
3,359
When you have 900 people working on a game trying to make everything as realistic as humanly possible over the course of 5 years, this is bound to happen. Modern video game development and budgets aren't sustainable. And it's only going to get worse next gen.

In a world where executives are getting $15,000,000 bonuses, idk if inflated budgets due to heightened expectations from users is really the issue. A big budget, AAA game that sells millions of copies and objectively makes a healthy profit are only "flops" in the eyes of greed driven shareholders and executives who expect exponential growth.

I don't see why a company like Activision doesn't change course with their COD Yearly cycle. They have how many studios? Take some of them and have them make smaller indie size games with more controlled budget and than have your tent pole studios work on the big franchises. After that you also contract out your IP with smaller indie studios, pay them to make your games and revenue split it. EA and Activision have a huge IP portfolio that they are not even touching.

This is also incredibly valid. Activision could make bank releasing core titles like THPS in the $20 range. People would absolutely eat that up, and all they have to do is put a small team on it to make a tiny, budget title that get's released every 2 years or so. It's so odd that they seem intent on trying to make everything a yearly $60 franchise, which seems to fail to recognize completely that not everything *can* be a yearly $60 franchise in a world saturated with titles competing for user's time.