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8/17/2009 3:34:02 AM
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Halo 3 Development Budget -- why are game costs so high?
I'm just curious why games cost $50-60 rather than $20-30.. Movies have common budgets of $30 million to $150 million, and can sell their movies for $20 then make millions to billions in profit.. Do video games really have budgets in the multi millions? Is the price double because of the hours of entertainment increases value?
Can anybody give some kind of useful information on this? I'm curious why were paying so much. Also, since Microsoft made it so we can buy games online then download them.. why not only release online instead of spending so much on disc media?
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Video Games are interactive, and games like Halo, which have online multiplayer and file sharing require lots of bandwidth and lots of space. That equals $$$.
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[quote][b]Posted by:[/b] TwoFaced1680 [quote][b]Posted by:[/b] Coryman i know the audience is a little smaller, and they dont gain profit from things like theaters to help pay for the DVD release.. but does anybody know a rough estimate of video game budgets? for example, how much bungie spent on halo 3 untill its initial release?[/quote]According to [url=http://www.cbsnews.com/stories/2007/10/17/tech/gamecore/main3377433.shtml?source=RSSattr=GameCore_3377433]this article[/url], 30 million dollars was spent on development and 10 million on advertising for Halo 3.[/quote] just did some research, prices on modern games is about 15-60 million dollars. That article is completely legit.
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[quote][b]Posted by:[/b] Coryman i know the audience is a little smaller, and they dont gain profit from things like theaters to help pay for the DVD release.. but does anybody know a rough estimate of video game budgets? for example, how much bungie spent on halo 3 untill its initial release?[/quote]According to [url=http://www.cbsnews.com/stories/2007/10/17/tech/gamecore/main3377433.shtml?source=RSSattr=GameCore_3377433]this article[/url], 30 million dollars was spent on development and 10 million on advertising for Halo 3.
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[quote][b]Posted by:[/b] Coryman I'm just curious why games cost $50-60 rather than $20-30.. Movies have common budgets of $30 million to $150 million, and can sell their movies for $20 then make millions to billions in profit.. Do video games really have budgets in the multi millions? Is the price double because of the hours of entertainment increases value? Can anybody give some kind of useful information on this? I'm curious why were paying so much. Also, since Microsoft made it so we can buy games online then download them.. why not only release online instead of spending so much on disc media?[/quote] im surprised how much halo ODST cost in fact it is only worth its price if you have never played halo 3 but i pretty sure that only 3 year olds fit into that category
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[quote][b]Posted by:[/b] DB5414 [quote][b]Posted by:[/b] mskji123 I dont think they sell as many video games as DVDs, hence the higher price.[/quote]Wouldn't it be the opposite if the number of products sold dictated price? More demand = higher price typically, and less demand = lower price. [/quote] If supply stays constant then more demand = higher price and less demand = lower price. More or less demand relative to another product isn't really useful in determining price. Price also has a lot to do with what the market will bear. IE. what is the consumer willing to pay.
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[quote][b]Posted by:[/b] Coryman i know the audience is a little smaller, and they dont gain profit from things like theaters to help pay for the DVD release.. but does anybody know a rough estimate of video game budgets? for example, how much bungie spent on halo 3 untill its initial release?[/quote] It starts with the developers making an estimate of how much money they will dump into the project (these guys have pHd's in business) and estimate high, just incase because of "murphy's law". well, the developers usually get advanced royalties (aka "loans") from the publishers to pay for the game, then don't make as much off of the game after it goes through a huge shipping process, maybe 60 % of the profit goes to the company. After advanced royalties are paid off, the company then has more of the profit. However, if the company already has enough money from the estimate, then they can work straight away without loans of any sort. I can't really put a price though, it varies based on the size, game franchise, payroll, bills, and other things. [quote][b]Posted by:[/b] Uysie2 When you see a movie in the theater you can't watch it again. With games you can play them over and over again as many or as few times as you want.[/quote] QFT [Edited on 08.16.2009 8:02 PM PDT]
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When you see a movie in the theater you can't watch it again. With games you can play them over and over again as many or as few times as you want.
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Movies make a majorority of its money from its release in theaters. You don't exactly see people going to theaters paying $8 to play Halo 3 for two hours. What this means is movies make much more off initial release, therefore, it is cheaper once on DVD.
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[quote][b]Posted by:[/b] Jak O Bladez More work goes into a game before AND after it is released, and they have a smaller budget I think. They have to create everything from scratch, from code. And that isnt even including the story. 50-60 dollars is great considering games are 120-150 in new zealand. And if you convert 60 american to nz, you get around 100 dollars. So games cost even more in sad poor countries like my own. (NZ rocks btw)[/quote] america wont be too far ahead of you for long, the way things are looking =P sorry for off topic.. but yeah your right the prices arent THAT bad for games.. but im just curious why their so high compared to other things
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Movies are generally consumed in less than 3 hours. Games usually take 15+ hours. If you break it down to a cost per hour basis than games are a much better deal.
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yeah thats probably what game of the year is for.. demand dropped, so they release it again cheaper
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More work goes into a game before AND after it is released, and they have a smaller budget I think. They have to create everything from scratch, from code. And that isnt even including the story. 50-60 dollars is great considering games are 120-150 in new zealand. And if you convert 60 american to nz, you get around 100 dollars. So games cost even more in sad poor countries like my own. (NZ rocks btw)
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[quote][b]Posted by:[/b] mskji123 I dont think they sell as many video games as DVDs, hence the higher price.[/quote]Wouldn't it be the opposite if the number of products sold dictated price? More demand = higher price typically, and less demand = lower price.
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i know the audience is a little smaller, and they dont gain profit from things like theaters to help pay for the DVD release.. but does anybody know a rough estimate of video game budgets? for example, how much bungie spent on halo 3 untill its initial release?
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Development costs are enormous.
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Because games are patched and fixed later on.
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A lot of people buy movies (elderly,adult,and children) but only children,teens,and some adults buy video games.
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I dont think they sell as many video games as DVDs, hence the higher price.
