Electronic Entertainment Design and Research (EEDAR) sends a follow-up to
reports that surfaced last week saying they claim only 4% of games
that make it to market are profitable
. This seemed like a head-scratcher at
the time, and sure enough, EEDAR clarifies that they were mis-quoted in the
interview, and the proper statistic is that 4% of games "that enter production"
return a profit. For clarity, here is the entire explanation:
November 21th, Forbes.com did an article on Electronic Entertainment Design and
Research. The article is located here
Unfortunately, there was a miss-quote in the article that a lot of sites noticed
and reported on. Below is the line from the article.
“Only 4% of games that make it to market actually make a profit, he says.
About 60% of a game's budget is spent reworking or redesigning a game. Armed
with all this data, companies can make those tough calls early in the
The actual statistic is only 4% of games that enter production will
return a significant profit. Of games that are released to the market, only 20%
will produce a significant profit. (Source for the second sentence: Secrets
of the Game Business by Francois Dominic Laramee).
We understand that miss-communications can happen, especially during phone
interviews, but given the inaccuracy of the statistic and how many other sites
have picked up on the story, we wanted to ensure that the major media outlets
received the correct statistics on the subject.
Geoffrey Zatkin, EEDAR’s President and COO, has provided some clarity on the
“Only 20% of games that begin production will ever finish. Of those 20% that
are finished and released to the market, only 20% of them will ever realize a
significant profit (Source: Secrets of the Game Business Francois Dominic
Laramee).That equals 4% of games that start production return a significant
During the concept and design process of a game, publishers and developers often
analyze every feature in a game to ensure proper implementation for a successful
release. At EEDAR, we believe that enough historical information is now
available to aid publishers and developers during the concept and design process
of a game. The EEDAR database, which now consists of over 6 million historical
data points, can help remove the burden for publishers and developers from
having to justify every feature in their title. Specifically, our DesignMetrics™
reports help publishers and developers by identifying early in the development
cycle the correct feature combinations most likely to meet consumer
expectations. This allows developers to focus more time and resources on
creating a high quality and well polished video game.”