Computer and Video Games quotes game designer Jesse Schell's industry keynote at the Gamelab conference in Barcelona where he cites research from industry analyst EEDAR saying an Xbox game accompanied by a demo typically sells half as many copies as a game that has no demo. This seems to be a cause for him, as it's not the first time he's gone off on this topic. This time around he says: "You mean we spent all this money making a demo and getting it out there, and it cut our sales in half? Yes, that's exactly what happened to you." Actually, it's not as simple as that, and statistical analysis rarely is. For instance, this does not account for how some recurring franchises eschew demos because they have an established audience, while smaller developers will often offer demos to attract attention to unknown games.
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