Now do that, to 3rd party games. If resident evil 8 gets sold on Playstation, they would have to pay 30% cut of the 2m potentially sold in that console. With the price tag of 60$ as a majority, the game would have made $120m/30%=120m-36m=$84m. same for other devices, which takes 30% cut, $84m. total is $168m. Now you takeout the game cost, and marketing, and what is left is the profit.
What would the R8 profit be, if it sold 1-2m on that month? Do you think they would have recouped their loss?
This is what 3rd party games would need to deal with. As games gets expensive, it would harder for them to make profit. They will also need to fight other game releases, especially big games. Outriders were lucky, it didnt get released between Battlefield, Halo and COD. That is why it sold well. The good window helped the game get more players.
You have gamepass at its infant. By now, it should be 20m+ users. Subs fees alone would be $200m. That is the cost of making god of war. With 30m, subs fees would $300m. This is just at average of 10$. Not counting 1st party dlc, and those who just want to buy the games that are on gamepass, or pay mtx, or small adds on, like dlc characters.
They can just get unlimited funding for their 1st party games. Get 3rd party games, who are afraid of losing their investments, like outriders.
This what happens when a game fails.
They lost millions of dollars. And most of them deserved it.
www.workandmoney.com
13. Marvel's Avengers
Year released: 2020
Developers: Crystal Dynamics
Publishers: Square Enix
Platforms: PS4, PS5, Xbox One, Stadia, Xbox SeriesX/S, Windows
Fallout: Approximately $67 million loss
If you have no exclusive deals, or timed exclusive, you will lose that much money on your product, if its not successful. Every year a game fails.
this is a 2018 game.
7. Overkill's The Walking Dead
Year released: 2018
Developers: Overkill Software
Publishers: Starbreeze Publishing
Platforms: Microsoft Windows
Fallout: At least 60 jobs and millions of dollars lost
I remember seeing ads for this game. That is how much it suffered, because it didnt sell well.
Not everyone is lucky as gtav, or have Sony/Xbox/Nintendo name. Studios who dont have financial backing would shoulder that much loss, if their game sold less.
This is why Subscription service is important. Making a deal with those companies, allows the company to have some of its cost shaved from them, and face less losses. If their game is truly sold bad.