The 1C Games Interview on Gamesindustry.biz
(registration required) talks with Nikolay Baryshnikov of 1C Company about the changing face of the games industry and the attitude of the Russian government towards gaming. Perhaps most interesting is an answer they highlight separately
(registration required) where he talks about how their company will continue pursuing niches, saying "it's almost impossible to make money even on a good game." He goes on to explain: "Because marketing budgets are tens of millions dollars, consumers are expecting that they're going to pay $40 or $60 and get amazing things. Hundred hours of gameplay, tens of thousands of hours of DVD footage, super multiplayer, this and this and this. If we did this it would be, I don't know, $200 million... If we produce something of great quality but it lacks this component or that component, then press says, 'oh, 85. I played the game, it's kind of nice, but it has no video or any of this shit'. And consumer says 'it doesn't have multiplayer, I'm not going to buy it.' So it's catch 22." He explains their philosophy: "Try to find a niche like we did with IL2 or Rig'n'Roll or Men Of War, and try to number 1, 2 or 3 – the top three in the niche. Not compete with hundred million dollar development, with Call of Duty 7 – but make the best game and target it at much smaller groups of fans."