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	<title>Comments on: For Anyone Who Wonders Why The Retail Games Industry is Tough</title>
	<link>http://forge.ironrealms.com/2007/07/09/for-anyone-who-wonders-why-the-retail-games-industry-is-tough/</link>
	<description>A blog on virtual worlds, games, and digital content, from Matt Mihaly</description>
	<pubDate>Thu, 20 Nov 2008 12:15:41 +0000</pubDate>
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		<title>by: Andrew Crystall</title>
		<link>http://forge.ironrealms.com/2007/07/09/for-anyone-who-wonders-why-the-retail-games-industry-is-tough/#comment-22832</link>
		<pubDate>Wed, 11 Jul 2007 12:51:24 +0000</pubDate>
		<guid>http://forge.ironrealms.com/2007/07/09/for-anyone-who-wonders-why-the-retail-games-industry-is-tough/#comment-22832</guid>
					<description>That's not quite true from what I've heard. Only 10% make a profit... and &quot;more than that&quot; break even. (I believe around 12%, but can't confirm that)

Anyway, the publishers need to work more on ways to fight the long tail, yes.</description>
		<content:encoded><![CDATA[<p>That&#8217;s not quite true from what I&#8217;ve heard. Only 10% make a profit&#8230; and &#8220;more than that&#8221; break even. (I believe around 12%, but can&#8217;t confirm that)</p>
<p>Anyway, the publishers need to work more on ways to fight the long tail, yes.
</p>
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		<title>by: Psychochild</title>
		<link>http://forge.ironrealms.com/2007/07/09/for-anyone-who-wonders-why-the-retail-games-industry-is-tough/#comment-22777</link>
		<pubDate>Wed, 11 Jul 2007 02:48:55 +0000</pubDate>
		<guid>http://forge.ironrealms.com/2007/07/09/for-anyone-who-wonders-why-the-retail-games-industry-is-tough/#comment-22777</guid>
					<description>Matt wrote:
&lt;i&gt;Yeah, and even then I believe about 90% of retail games lose money.&lt;/i&gt;

That's close to the stats I've always heard.  Games are a hit-driven business, where the big winners make enough money to let the also-rans be made.

Of course, many companies want more profitability, which leads to the conservative approach of supporting the nearly guaranteed successes.  Note that all three of those games are sequels to established franchises; due to licensing, &lt;i&gt;Madden&lt;/i&gt; is the only game in town now for NFL football video games.

Of course, this means that we'll see less of the interesting games that can prove to be runaway hits.  &lt;i&gt;The Sims&lt;/i&gt; is the classic example in games, where the managers didn't want to spend money on it, but it spawned a new (and hard-to-clone) success.  The problem is that it's hard to do so when it's your career on the line if you back the wrong project.

That's one of the reasons I'm such a supporter of indie games.  I think we need them in order to take the risks that big budgets and profit statements won't tolerate.  Of course, sometimes the audience won't tolerate the lack of a big budget. ;)</description>
		<content:encoded><![CDATA[<p>Matt wrote:<br />
<i>Yeah, and even then I believe about 90% of retail games lose money.</i></p>
<p>That&#8217;s close to the stats I&#8217;ve always heard.  Games are a hit-driven business, where the big winners make enough money to let the also-rans be made.</p>
<p>Of course, many companies want more profitability, which leads to the conservative approach of supporting the nearly guaranteed successes.  Note that all three of those games are sequels to established franchises; due to licensing, <i>Madden</i> is the only game in town now for NFL football video games.</p>
<p>Of course, this means that we&#8217;ll see less of the interesting games that can prove to be runaway hits.  <i>The Sims</i> is the classic example in games, where the managers didn&#8217;t want to spend money on it, but it spawned a new (and hard-to-clone) success.  The problem is that it&#8217;s hard to do so when it&#8217;s your career on the line if you back the wrong project.</p>
<p>That&#8217;s one of the reasons I&#8217;m such a supporter of indie games.  I think we need them in order to take the risks that big budgets and profit statements won&#8217;t tolerate.  Of course, sometimes the audience won&#8217;t tolerate the lack of a big budget. <img src='http://forge.ironrealms.com/wp-includes/images/smilies/icon_wink.gif' alt=';)' class='wp-smiley' />
</p>
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		<title>by: Matt</title>
		<link>http://forge.ironrealms.com/2007/07/09/for-anyone-who-wonders-why-the-retail-games-industry-is-tough/#comment-22710</link>
		<pubDate>Tue, 10 Jul 2007 16:36:22 +0000</pubDate>
		<guid>http://forge.ironrealms.com/2007/07/09/for-anyone-who-wonders-why-the-retail-games-industry-is-tough/#comment-22710</guid>
					<description>Yeah, and even then I believe about 90% of retail games lose money.</description>
		<content:encoded><![CDATA[<p>Yeah, and even then I believe about 90% of retail games lose money.
</p>
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		<title>by: Martha</title>
		<link>http://forge.ironrealms.com/2007/07/09/for-anyone-who-wonders-why-the-retail-games-industry-is-tough/#comment-22662</link>
		<pubDate>Tue, 10 Jul 2007 08:38:53 +0000</pubDate>
		<guid>http://forge.ironrealms.com/2007/07/09/for-anyone-who-wonders-why-the-retail-games-industry-is-tough/#comment-22662</guid>
					<description>Wow, I had no idea.  I suppose that partially explains the cost of the rest of the games....</description>
		<content:encoded><![CDATA[<p>Wow, I had no idea.  I suppose that partially explains the cost of the rest of the games&#8230;.
</p>
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		<title>by: Adrian Crook</title>
		<link>http://forge.ironrealms.com/2007/07/09/for-anyone-who-wonders-why-the-retail-games-industry-is-tough/#comment-22622</link>
		<pubDate>Tue, 10 Jul 2007 01:08:53 +0000</pubDate>
		<guid>http://forge.ironrealms.com/2007/07/09/for-anyone-who-wonders-why-the-retail-games-industry-is-tough/#comment-22622</guid>
					<description>What's the opposite of Long Tail... Fat Head?</description>
		<content:encoded><![CDATA[<p>What&#8217;s the opposite of Long Tail&#8230; Fat Head?
</p>
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