Interesting Article That Explains Why Games Cost $60

(guerrilla_87) #1

I found this posted in another game forum, courtesy of a forum mod.

Very interesting article.

For the lazy crowd, here’s the short version :

(signofzeta) #2

holy money troubles

no wonder PC games cost cheap. Nobody has to pay anybody for cost of manufacturing for a PC.

(tokamak) #3

That’s also why Microsoft pulled out of the deal with the US army to employ xbox360’s with a war simulation game for training. Only one game per xbox is simply not financially appealing.

(PSG_Mud) #4

[QUOTE=signofzeta;213881]holy money troubles

no wonder PC games cost cheap. Nobody has to pay anybody for cost of manufacturing for a PC.[/QUOTE]

publishers do that

(Stroggafier) #5

I believe, what Steve Perlman was trying to say with this chart is that $26 or about 45% of customers’ cost of a game can be replaced with the much smaller direct distribution channel cost, such as his new, soon to be launched service (what a surprise).

Of course there’s some truth in that. But, he failed to say how much cost would be displaced to his service. And, he failed to mention the past attempts at this have not really succeded (e.g. STrategy First), nor that there already is competion out there (e.g. Valve) and these figures have not always translated into such dramatic savings to customers, nor significantly improved profits to publishers.

(brbrbr) #6

thats why traditional-way publishers never do marketing breakthrough.
overhead so tremendous, so both delivery, support, pricing, was always “on edge” of common sense.