Why next-generation games are so expensive

Posted on Friday, Dec 22 2006 @ 12:03 CET by Thomas De Maesschalck
Forbes explains into detail why next-gen games like Gears of War cost $60.
That beefed-up price tag--which also applies to games for Microsoft's Xbox 360--is a 20% increase over games for earlier consoles. That's because the game business increasingly parallels Hollywood: Each new game is a costly bet--many now cost north of $20 million to produce--that can pay off big or cost a company its quarterly earnings goal.

Those risks are magnified at the beginning of a game cycle, when gamers are swapping out old machines for the new models. It's hard to sell a blockbuster game to gamers who can't play it. Microsoft claims it will have sold 10 million 360s by the end of this month, while Sony will have sold 2 million of its newly introduced PS3s, at best..


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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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