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Just Cause developer says AAA game development unhealthy, unprofitable

The state of AAA development today is unhealthy and most big-budget games will never make a profit, Just Cause creator Avalanche Studios founder and creative director Christofer Sundberg believes.
"It’s really not healthy at the moment," Sundberg said when asked to give his assessment of the AAA business today. "Games have evolved, technology has evolved but as businesses we’re still stuck where we were 15 years ago. As budgets grow, risks increase."

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Gamesgbkiller4479d ago

If you make a BAD game then its unprofitable ( most of the times )
Anyway, I want to see Mad Max gameplay..

Where is the GAME ?!

360ICE4479d ago

Yeah, you can easily make a good game and have it be unprofitable. Studios have gone bankrupt after making decent games. The returns needed on the biggest AAA titles are insane.

erathaol4479d ago

Most of the AAA games seem geared toward tackling high sales, when its unfair to judge a market based on self made expectations or even expectations based on similar games success.

360ICE4479d ago

@erathol

The expectations aren't "self-made". In fact, there's this new thing the kids are doing called "market analysis" and "focus-groups". Fact of the matter is that

A) You're gonna have to make a dazzling game if you want a new IP to sell.
B) Dazzling games cost a lot of money to make.
C) If they turn out bad (everyone can run into problems) it's extremely expensive to delay the game or have it sell less.

Of course, there are success-stories like Minecraft out there, but that doesn't stop the fact that for most studios, taking a chance on a new AAA IP is pretty bold.

At the end of the day, game development has a lot in common with other IT projects, and are subject to huge, unexpected issues. That costs money too. Especially for a project that's on a deadline.

Prime1574479d ago

That's not true in terms of business. Look at sleeping dogs, even though it was a great game, their first Report was a loss, and then many months later they finally said it did well. They were talking to their investors. (It was a sleeping dogs or tomb raider)

Good games still flop.

sashimi4479d ago

They flop though cause of bad management. Which SquareEnix seems to be failing hard at this whole generation.

Skate-AK4479d ago

It happened with both Sleeping Dogs and Tomb Raider.

Gamesgbkiller4479d ago

Sleeping dogs only issue was the marketing

I swear there a lot of people didn't know the game exists .

And about Tomb Raider .. Its SE fault rather than the game.

They expected to sell more than it should be.

Good or bad .. it could be Win or loss ... You can't always win :)

3-4-54479d ago

* Take the $100 million you were going to spend on a game and make 4 $25 million dollar games.

* 4x the ability to get creative and try things out and your risking the same amount of money.

* 1 of the 4 will stick, and become profitable enough to make your money back on all 4, and then you have a new franchise which you can build off of.

* Do that again and so on and you build new IP's, while taking the same amount of risk, yet pushing through all the new ideas you want to try, but aren't sure.

Not sure why this isn't happening more.

It would work.

GraveLord4479d ago

Not true. Make a good and innovative AAA game and people will buy it. Just look at The Last Of Us.

cyguration4479d ago

The Last of Us wasn't innovative at all. It was a good game with solid gameplay and a very good story with detailed characterization.

There was nothing innovative about it, though.

SnakeCQC4479d ago

Compare it to the myriad of games that don't do those things. Innovative is the wrong word but it was definitely what a mature game with a story should be like and hell the mp is pretty awesome too.

Allsystemgamer4479d ago

Innovative no but as you said it blended every element nearly flawlessly

MegaRay4479d ago

The last of us sold very well cuz it was ND game, everybody trust ND.
theres alot of great games with high budget doesnt sell well, especially if the dev ísnt that popular

dcbronco4478d ago

Also it was one of a few games at the end of a consoles lifespan. People were ready to move on.

Mikefizzled4479d ago

Just Cause 3 free to play iOS and Android exclusive. $4.99 for ingame grapple hook dlc.

NYC_Gamer4479d ago (Edited 4479d ago )

That's just an excuse used by many developers who bring out average games and expect to break records

hiptanaka4479d ago

If you learned how to budget and reduce all the marketing hoopla, AAA would be more viable and people would still buy your games.

BluP4479d ago

^^^ This. Why don't pubs get it?

dcbronco4478d ago

Just Cause 2 sold pretty well. And wasn't heavily marketed. Gaming cost have gone up but the price hasn't. Just look at your own paycheck. All of your cost have risen over the last ten years. But most peoples salaries have barely moved. Games have cost the same thing for almost 10 years without a increase in price. But salaries in the areas of people needed for gaming have been going up because it's a demand field.

That's why games have gotten shorter and mechanics haven't changed much. We might need to just pay a little more. Or maybe the multi-player and core game need to be sold separately. Or maybe episodic content. People don't like micros-transactions. Or day one DLC. But companies have to do something.

BluP4478d ago

I don't think it's that simple. We're still paying ~$60 for a game, but that one game is also selling millions more than previous generations. More people are playing games, which means more sales (generally), which balances out the increased development costs.

Also, digital sales are rising, too. Publishers make a lot more profit off of a digital sale than they do a retail sale. Then there's DLCs, remakes, special editions, etc. If they weren't making enough money, there wouldn't be so many games for consoles. They'd all move to tablet and mobile.

dcbronco4478d ago

There are a lot of things people don't take into account. Taxes, labor, administrative overhead, license fees and royalties. Many people seem to believe that the developer gets every dime of that $60. They first pay taxes, 20% or more. Then the $10 royalty to the platform maker. That's over twenty dollars there. Fees for middleware, disc cost, packaging, electricity for months of the development process, rent. Pressing master disc, then duplication. Transportation to retail. Publisher fees(Some of this stuff comes under publisher cost). And don't forget advertising and retail mark-up.

A game that cost forty million to make may sell a million copies. Okay, they sold 60 million worth. Now subtract all of those things. You immediately lose more than twenty million to taxes and the royalty to the platform holder. Everything else is a loss. Also remember a lot of games used to launch with gift cards or rebates toward a future game. All of that hurts too. Which is why you rarely see that anymore.

Digital sales will make a difference. That is very true. That is why there has been a push toward that. As well as a lot of resistance to it. And you must have missed all of the developers that have moved to mobile gaming or have closed period. It's why we live in the world of the annual series. The people have spoken and they have made it clear they want more of the same. If it ain't broke, don't fix it. I would rather pay a little more and get better quality and new mechanics. If someone would really try something new.

BluP4478d ago

I'm not sure I agree about those fees (the amount, not whether they exist) as I'm not familiar enough with the industry.

I doubt that we're getting sequels because that's what people want. We're getting sequels because

A) They're generally cheaper to make, as you already have an engine (if it's in-house), story/canon, characters, world, assets that can be reused, etc

B) There's less risk involved in making a sequel because it's almost guaranteed to sell as long as it's predecessor sold well. And because it's already cheaper (usually) to make than a brand new IP, it makes it even less risk. That's why we have games like Lightning Returns.

Just my opinion, thanks for an actual civil discussion btw.

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