Game makers suffer with next-gen
The advent of the next-generation of game consoles might be highly touted by developers and publishers, but that doesn't mean all parties involved in the switch-over will be making money from it. That's the news from media analysts Screen Digest, who today reveal that many game makers are unlikely to make profits until 2008.
The organisation's new report blames significantly higher development costs, coupled with initially low user bases for the stifling of profitability. Next-gen games require longer development time and larger development teams, with many games firms presently struggling to cover costs on releases for consoles like the Xbox 360 and the PlayStation 3.
The report also found, much to the surprise of - well, no one - that the majority of titles are now sequels or games based on films. The report, revealed by the BBC this evening, models industry sales forecasts until 2010. While multi-platform titles are de rigeur in these uncertain times, then, the report does note that Microsoft are an exception, given the number of exclusive titles they have enlisted to the Xbox 360.
"It's hard to see how anyone would commercially agree to that without a relatively substantial payment to mitigate the risk of that game being only on a single platform," said the report's author Ed Barton, on the Microsoft situation.
"Sony has scaled up its own internal development resource, basically becoming one of the largest makers of gaming content on the planet," Barton said on Sony's internally-focussed approach to success.
ELSPA boss Paul Jackson responded to the report's findings by stating that companies that adapt to the changing times will be best-placed to take advantage of the next-generation. A case of riding out the storm, then...
Source: BBC News