Conclusion


Not very many games ever earn anything beyond the initial advance for their developers. Even in the best case, it will take months for the game to start earning royalties, and a few more months for the money to reach the developer. As a result, smart companies now base their budgets on the advances alone—and they try to build a healthy profit margin into them. Thus, the "cost and margin" pricing model becomes more prevalent, in fact if not in intention.

The retail market for games is difficult for developers, and not much easier for most publishers. Retailers wield enormous power over our livelihoods: they stock few products, don't keep them on the shelves for very long, and reap much of the income the games generate. Yet, alternative distribution schemes (e.g., online sales) have not risen above marginality, because of download sizes and fears over channel conflicts. Learning how the retail market for games works will help developers thrive in this competitive environment.




Secrets of the Game Business
Secrets of the Game Business (Game Development Series)
ISBN: 1584502827
EAN: 2147483647
Year: 2005
Pages: 275

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