(Hi!, first time poster and all that...)
I thought I'd chime in here as a software engineer with about 10
years experience who has worked developing video games and been
involved in numerous start-ups...
"a popular game software costs $1 million to produce and market"
Actually the costs are much higher than that. Just for
development it can easily take a team of 20 people two years; with
all the over head that can easily get into or over the $5 million
range. This is exclusive of packaging, advertising, any licensing,
etc.
"The projected number of sales is in the 500,000+ area..."
500,000 sales would be a BIG hit. If you are in the lucky top
15% or so. Most games are miserable sales failures, usually because
they aren't very good, developing a "fun" game is very hard. This is
why you see so many copy-cat games. It is very tough to break new
ground and have it turn out to be "fun" and keep up with the
technology curve (remember that technology is advancing AS you are
building the game) and not completely blow over your budget or
timeline, keep the team from killing each other due to overwork, hit
the magic Christmas sales cycle, convince your stakeholders not to
cancel the project, etc. etc. etc.
"...and the selling price is set at $50..."
Yes, but remember that between retail and distributor mark up the
production company would be lucky to see half of that.
The numbers still work out that if you get lucky you can invest
between $2-10 million or so and have a low percentage change of
making a multiple of your money. That said, the odds are you are
going to lose it. If you do make it, you turn around and try to
churn out some "me too" games to squeeze every drop out of the brand
you built with your big title while you try like heck to get lucky on
your next big original.
Most of the start-up softare business is some variation of that
basic formula.
You want to know who gets to drive the Ferrari's? Two people:
a) The people who are key to making that tough shot actually
happen get rewarded (usually as incentive to stick around and do it
again).
b) The people who plopped down their $X million on a long
shot.
I've met lots of people who were real (or paper) millionaires
who have won and lost in this game...there are many more losers.
Frankly, if I ever build a small multimillion dollar nest egg there
is NO WAY I'd take the chance these people do.
There a lots of ways someone can attempt to justify piracy, but
the argument of "$XXX is so over priced" doesn't hold water. Any
commercial software project is extremely expensive and for a lot of
software products out there, there is some guy rolling the dice with
his life savings.
--- In DTXpress@yahoogroups.com, distortion@r... wrote:
>
> > I downloaded cubase and a few others from limewire, I wasn't
about to
> > pay $499.00 for something I can get for free, besides, I spent
all my
> > money on my kit,
>
> Oh, boo hoo... So, did you steal your sticks and a amp too? I bet
you
> saved up for the kit too, long hours at work, working for the man..
I
> bet your boss gets paid more than you.. how fair is that? I suppose
when
> (ha, ha.. if..) you ever get famous you will give away all the
copies of
> your CD too.. cuz I could get it for free anyways? Get real, F-ing
bull!
> A recording set-up is WAY cheaper than it used to be. My first 4
track
> cassette recorder was more than $499, then I needed processing gear
and
> stuff...
> Today, you can pay $19 for Anvil Studio, 8 track of audio plus DX
> effects and MIDI sequencing...or how about $49 for Cakewalk Music
> Creator. There are plenty of legal and fair ways to record your
music,
> it's just that you'd reather steal than buy.
>
> > and for 499 bucks you would think the programmers
> > would throw in some bugs so you can't use it for free.
>
> HA HA HA! Ok, so it's THIER fault.. ok... " Gee officer, if the
woman
> didn't WANT me to steal her purse, she should have left it at home!"
>
>
> > can't be used from a download, so I bought it. I figure if they
bump
> > the price up for a product that can be cracked, then the
programmers
> > made squat and once again the corperate man gets another ferrari,
and
> > you know it.
>
>
> The price is high because the cost of development and support, plus
the
> low volume of sales.The price is required to recoup the costs. For
> example, a popular game software costs $1 million to produce and
market,
> they recoup that from sales (obviously) The projected number of
sales is
> in the 500,000+ area, and the selling price is set at $50, the
producer
> is up at least $24 million dollars, not figuring in platform
licencing
> fee costs and bonus income from product tie ins and external
licencing
> income from the cartoon series, stickers, lunchboxes..etc... . The
music
> software industry enjoys no such luxury of profit or sales numbers,
most
> companies are just a release away from bankruptcy, but still have
to pay
> for coders, support staff, building leases and misc staff, but in
your
> world I'm sure they are free too.
>
> Did you know that he programmers get paid when you PURCHASE a
product,
> and so does the boss with the Ferrari, and the guy at the store,
and the
> truckdiver that shipped it... so they should, that is the way our
great
> countires operate! If you don't like that, how 'bout you come work
for
> me.. I'll put you to task and rent you out for free.. since you
believe
> work isn't worth paying for.. or how 'bout I buy you a one way
ticket to
> some far east country to work in some Power Ranger doll factory
where
> they put chains on the doors so you can't escape (even in case of
fire..
> true story)
>
> Buddy, there are worse corporate crimes in the world than charging
a
> measly $499 for software we can use to make WAY more money than
that
> professionally.. and if you are not doing this professioanally,
what
> would you REALLY need CuBase SX for anyways? So, go back to
Newgrounds Show quoted textHide quoted text
> or TOTSE where you belong, dude and leave us alone.
>
> 'People' who TRY and justify piracy make me sick...
>
> >
