Game development costs...

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http://www.gamespot.com/news/2005/08/12/news_6130901.html

It's a very interesting article... amazing how expensive it is to make Xbox games! PS2 development fared very well though even with slightly inferior hardware, the developement costs are only a bit higher than the GC's. But still, it's not as bad as I thought it was. The PSP's development costs are a surprise too, I thought it would be more than GBA development but less than consoles but it ends up being similar to the GC's... but I guess I should've expected that seeing as the system is capable of near PS2 quality graphics.

But the real shocker is how cheap it is to produce DS games... I knew it would be less than the PSP but less than GBA development? That's just amazing.

Maybe we will see $60 games next gen, but there's a chance that Rev games will cost less as Nintendo wants to make their system as easy to develope for (using weaker hardware and the GC's API).:)
 
That data doesn't really tell much. Think about it, there are some games that cost less to develop then others. Say for example, Sonic Mega Collection for PS2. It'll cost less then say Final Fantasy X. So say if they took 193 games like Sonic and Final Fantasy X, then this wouldn't be an accurate result. Same can do with all the systems.
 
No, it doesn't tell the whole story but it does give an average to go on... which is better than nothing.:p
 
So if M$ is losing money on the hardware and can't make as much money off of the games due to the higher development cost, it's a wonder how they'll ever turn a profit until generations down the road. Unless, of course, they're a run-away success.
 
MS can afford to lose money till they're #1, but the development cost isnt a big factor for them because they dont develop every xbox game. They only charge a licensing fee for other companies to release games on their console. And 2 million doesnt seem like that much to me, I know a lot of games cost a lot more than that, but if that means you only have to sell 40000 units to turn a profit that does seem unreasonable. And what about multi console games? I think the problem develpers and publishers are having is thinking their games are actually good enough to compete with Halo, GTA and Zelda. Look at the Stargate game that was just cancelled cause it went over its $5million and isnt close to being finished for its release date.
 
Just so you guys know, a typical AAA cross-platform console title costs anywhere from $7 million to $20 million to develop. This article is so half-assed it's kind of funny. They sampled a whole 13 titles for the Xbox? What kind of sample size is that?

And no, selling 40,000 copies does not net $2 million dollars. You're not taking into account retail costs, first-party licensing fees as well as discount pricing.
 
I think the data are way off, primarily due to this being a Japanese analysis. In Japan, this might be the case.

In America, there are *far* more Xbox titles that are released, so my problem with this research is that it is analyzing Xbox development costs in a market that has treated it with nothing less than the greatest of disdain. In no way, shape, or form is their market comparable with the United States. Yes, sales don't affect the development costs; however, sales do affect what gets released (and thus, the pool of selectable titles to perform this analysis on).

Interesting and *possibly* of importance in Japan, but meaningless here.
 
[quote name='mykevermin']I think the data are way off, primarily due to this being a Japanese analysis. In Japan, this might be the case.

In America, there are *far* more Xbox titles that are released, so my problem with this research is that it is analyzing Xbox development costs in a market that has treated it with nothing less than the greatest of disdain. In no way, shape, or form is their market comparable with the United States. Yes, sales don't affect the development costs; however, sales do affect what gets released (and thus, the pool of selectable titles to perform this analysis on).

Interesting and *possibly* of importance in Japan, but meaningless here.[/QUOTE]

In addition, the available talent pool for programmers who are adept with DirectX on PCs makes it much easier to recruit coders for Xbox projects, and the far greater market for Xbox games in the West also means that many more devs with Xbox experience competing for jobs. If Guy #1 wants $50K for a project with a 1 year schedule there is likely another guy with comparable skills but hungrier who'll do it for $45K. This can be modified by whether a candidate's resume includes a lot of hit titles or a history of troubled projects. OTOH, the lesser talent pool in Japan (where native PC games are also a far smaller market than in the West) likely means that when a project gets greenlighted the guys with real experience of the PC/Xbox and DirectX can demand higher salaries than those competing for work on the PS2. It would depend on whether the guy has a quality track record or is just claiming ability on any platform that offers a paying job.

It is true that a platform that allows you to do more also requires more labor to exploit those features but it can also be that only applies in those situation where the platform is being fully exploited, which hasn't been the case for much of the Xbox library, especially multi-platform titles. OTOH, it can also involve tremendous effort to get the most out of a less powerful platform that due to its massive installed base remains the place where the greatest rewards are to be found. The PS2 version of RE4 is an example of this. Capcom really wants this to measure up well tot he GameCube version and garner the kind of sales the PS2 can deliver. Since it is a port a major portion of the cost for originating the design and art & media assets has already been covered by the GC version. (Depending on Japanese accounting laws and the time frame involved they may try to split those costs between both platforms and retroactively give the GC version a greater profit margin.) But the sheer amount of time require to optimize each scene to best match the GC version will be costly. The PS2 market is so much bigger than anything else that it is worth the effort.

What I find very anomalous is the claim that DS projects are coming in so cheap. Considering the similarities and the expectation that some elements of a good DS game will involve some things beyond the GBA's capbility, I'd expect the DS projects to, at the very least, be equal in cost to GBA projects and get more expensive as the greater storage capacity of the DS cart format and greater potential complexity and detail of DS software. Does anyone really believe that Nintendo spent anywhere near that small an amount on Mario 64/DS, even when it was mostly a port? I can believe something very simplistic like Zoo Keeper came in for that low a figure but not any of the titles that really define the DS.

I'd very much like to see the list of games that were used to create this CESA report. The few Xbox titles produced in Japan are more often high end titles like Panzer Dragoon Saga with long schedules. But a major portion of those PS2 projects may have been items that would only appear at bargain prices if released in the West. That could tilt the average by quite a lot.
 
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