You don't get a loan from a bank to fund a game, the publisher does that. Banks won't give your small company a loan for 20mil to fund your game when you have no assets other than the IP of the game that isn't even complete yet. That's a big part of why publishers are so important to the gaming industry. In most cases a developer will have an operating line of credit to help fund development and it is paid off/replenished with advanced royalties or milestone payments. If you're a smalltime developer just starting out, you can surely make a business plan and get a loan but you won't be making any AAA titles with it.
Digital distribution doesn't change production expenses at all, just distribution expenses. In case you haven't noticed, most digital distro services are still just as expensive as purchasing a game at retail. Developers never paid distribution expenses anyways, the publisher did. Services like Steam have high royalty rates because while you don't have to ship a box, you do have to pay for bandwidth for the entire lifetime of the service along with support and all that.
Finally advertising on services like GameTrailers is fine and all but most successful advertising campaigns for large titles will have a TV component as well which is very very expensive.
What you're describing is fine for stuff like Bionic Commando Rearmed or Mount & Blade but not really applicable to larger titles.
However, we need to see companies like Ubisoft to stop seeing PCs as an afterthought and delaying releases because the game doesn't stand up as well on PCs.
The PC is an afterthought for a reason. We just don't have the customer base we used to. Consoles have really eaten into it over the past 10 years as they have gained more and more PC functionality like patching, internet connectivity, video/game delivery services, high definition capabilities and so on. PC gaming may not be dead but it's changing to be far from what most of us remember.
I'm totally fine with only having a few big titles a year on the PC as long as they have a ton of replay value. But I own consoles too so for me it just means I split my time up more. For someone who just owns a PC and doesn't want to play Blizzard games all year, it's a more shitty situation.
This comment was edited on Oct 12, 2008, 14:08.