Big sales needed for PS3 game profit
GameSpot UK are today reporting word from Namco that each PS3 game will have to sell in advance of 500,000 copies before they enter profit, an incredibly high number given the number of titles that still don't hit this point ever. Speaking to Bloomberg Namco president Takeo Takasu said that the costs of making a PS3 title could put off potential developers, as titles have to be mass market success stories to make money.
Takasu-san tells Bloomberg that games cost on average 8.6 million USD to develop, and that this dictates into a typical profit point of 500,000 game sales. The Bloomberg report, and GameSpot, note that the low number of initial PS3 shipments makes this target a hard one for publishers embracing the new format from the off. As for smaller developers, well, they may never be able to create full price games for the system.
Namco have released two games - Ridge Racer 7 and Mobile Suit Gundam: Crossfire - alongside the PS3's US and Japanese debut. They are also plotting the release of four games in support of the Nintendo Wii console, which aims to lure new titles onto the format with lower development costs.
More PS3 news soon.