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EA discusses expected cost increase of PS4 development
The per-game research and development costs associated with developing on the PlayStation 4 will likely be five to 10 percent higher than equivalent development on current generation systems, EA CFO Blake Jorgensen said during an investors conference call earlier this week."On any one title, it might be five to 10 percent increases in cost, but the real opportunity comes with the ability to expand what you can do in that title," Jorgensen said. "Overall you might see larger titles or larger costs because of the capability that you can deal with, but we'll also see larger revenue streams, we believe, because of the excitement around some of those big titles."EA has yet to officially determine whether these increased production costs will translate to increased retail costs, though Jorgensen made such an eventuality sound unlikely: "Typically at the start of a cycle, you've seen the pricing raise say to $69 for a core piece of software, and then over the life of those they've stripped it down to an introduction price typically now around $59. We haven't yet set pricing on our gen four [games], but you'll probably see a similar trend to that during the start of the next cycle."Jorgensen misspoke, according to EA, and actually meant to say that current-gen games start at $59 and are reduced to $49, and that's a trend we're likely to see continue. This aligns with SCEA CEO Jack Tretton's assertion that PS4 games will cost between $0.99 and $60.
Analyst believes Star Wars: The Old Republic had a $500 million price tag
Is Star Wars: The Old Republic the next big thing in MMOs? The same old thing in a new shell? Innovative? Routine? Polished? Buggy? Ask seven different people and you'll get nine different opinions. The one thing that everyone can agree on is that the game was expensive, and while most analysts are estimating somewhere between $100-$300 million, analyst Doug Creutz suspects that Electronic Arts has sunk nearly half a billion dollars into the project. This is in stark contrast to the estimate from analyst Michael Pachter, who targeted the price tag at roughly $80 million when all was said and done. Unfortunately, the precise cost won't be known unless EA decides to release the game's official budget and how much was spent on development, which seems unlikely. What is certain is that the performance of Star Wars: The Old Republic is going to be under close scrutiny over the coming months among both fans of the game and fans of financial speculation. [Thanks to Ben for the tip!]
Being in it for the money
We might fight a lot of enemies in our MMOs, but a number of players will agree that there's one enemy that is bigger than anything else: the company that makes the game. Blizzard, Square-Enix, Funcom, Bioware -- according to this branch of the playerbase, they don't care at all about the people playing their game. All they're concerned about is making money. They just want to get your money by any means necessary. However, the people who claim that say that like it's a bad thing. Nobody ever smiles and says "boy, I'm sure glad Sony Online Entertainment is in this for the money." Oddly enough, when you start to think about it, the fact of the matter is that it's not only transparent that these companies are in it for the money, it's a good thing. We should be happy that most of these companies are there to get our money by any means necessary.
Where the $60 for new games goes
With the 20% price hike in PS3 and Xbox 360 games, gamers wonder exactly where it all goes. We hear it is because of the increase in production costs, but we still would like to know the breakdown of where our triplet of $20 bills gets sent. Now, Forbes has given us the skinny on the whole deal, explaining why games like Gears of War are priced at $60. According to Forbes, $27 of the $60 taking its leave from your wallet goes toward the actual making of the game; $15 goes toward art and graphics while $12 goes toward gameplay mechanics. Other major price aspects are the 25% retail markup ($12 from a wholesale $48 per game) and console owner fee of $7 (Forbes says the PS3 is higher). All in all, the parties involved (retail and publisher) only get $1 for every game sold (publishers can boost it up to $3 per game if they sell advertising in the manual or as a pack-in pamphlet). This is, of course, before all those costs are paid up; after that, they can still make a nice profit at a $20 price point. The article, accompanied by a nifty slide show presentation, is an interesting look into the world of the new current generation. Still, it doesn't exactly explain why we got the 20% boost other than the "increased production costs". Are programmers getting paid more, working more, need more to finish the game, etc? In either case, the breakdown is an interesting glimpse of the inner workings of a game companies pricing decisions. [Thanks, Scooby Doo]
Xbox 360 dev: PS3 ports to be "reasonably difficult"
With game development costs growing to monstrous proportions and trampling the unconventional concepts roaming the streets of less ambitious publishers, it doesn't take a brilliant businessman to realize that multiplatform releases are likely to generate more money than exclusives. It might, however, take a brilliant programmer to carry out that strategy. Since the Xbox 360 and PS3 both embrace the paradigm of parallelism (or really pretty graphics, if you prefer), it has become almost a foregone conclusion that a large number of titles will inevitably wind up on both platforms. It's not an outlandish conclusion to reach, but the journey may not be as easy as all that. In a recent (and very interesting) Ars Technica interview, Xbox 360 developer Matt Lee points out that porting games between the two systems might be a tad tricky. "I think porting from Xbox 360 to PS3 will be reasonably difficult, since the Xbox 360 has a lot more general purpose processing power that can be flexibly reallocated, and all of the Xbox 360 CPU cores have equal access to all memory. The asymmetric nature of the Cell could easily lead to situations where the game has too little of one type of processing power and too much of another."Of course, the Xbox 360's trio of general purpose processors may pose an equally significant problem when attempting to tackle a game designed with the PS3's Cell design in mind. Adding multithreaded graphics engines and physics routines to the equation only makes things more complicated and fails to provide a clear answer to the question: If a game costs a fortune to produce, how many publishers are likely to invest even more in porting a game across the Microsoft-Sony divide? It may not have been a major issue in the previous generation, but money changes everything.
