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98. Re: Your reasoning is flawed. Mar 27, 2010, 21:05 shponglefan
I've Got The News Blues wrote on Mar 27, 2010, 01:04:
That's why I wrote "per unit" in my original post. ;)

True, you did. I guess I was more fixated on the original post you were quoting. My bad.

Yes, but you have to look at the potential market. Video games sell today in a global market, and they are more mainstream than at any other time in the history of the industry. According to VGChartz there have been ~70 million Wii's, ~40 million XBOX360's, and ~35 million PS3's sold worldwide. There is a huge market for video games today, so the industry can certainly sustain a low price/high volume sales strategy and still be successful at least for the most popular game genres. Sure it was easy to justify a $50 price tag back when successful video games sold in the tens or even hundreds of thousands of copies. But, now that the most popular games sell fifteen or twenty million copies or more, $50 per game becomes a lot more excessive and stifling even when the games have eight figure development expenses.

Even so, many games still struggle to make money. Part of the problem is the incredibly huge costs (esp. marketing budgets these days). I'd be curious to see what the break-even points really are and how many games are profitable.
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