Jedi Master wrote on Apr 27, 2013, 14:21:
Yet LG collapsed. Why? Because they could program good games but didn't have a clue how to run a business. Many simmers remember Flight Unlimited with fondness, too.
There's more to running a developer than making great games. If you make a great game but need to see "100 million copies" to turn a profit, it's still a failure. So LG did.
Not really... as long as you aren't stupid it's not that difficult to run a business.
So if you use 1 million to make a game (cheap game

) you need to make 3 million. 1 million to cover your costs (lets pretend there is no interest) and 2 million for the next project. Then you need to make 6 million. Gamers are "kunty", they won't settle for the same 1 million dollar game the second time round.
It's just that people don't think that way. It's easy to lose focus of that extra money you will need later on.
What happens if your budget of 1 million goes over? You need another half a million. But the game can't go up in price to cover that. You just need more sales, but your projections don't cover that. You're losing money already by going over the development budget. You freak out, you ship the game before it's done, it's half ass, no one buys it, OMG! you have no money... it's all gone, no future projects.
And that is... kinda... not really... how it works lol
If you listen to rich people you'd realise it doesn't pay to be smart, it pays to be a "kunt".