Just 80 Profitable Games a Year?

Industry coverage site Next Generation details a report claiming that in the upcoming next generation, the games industry will become even more high-stakes than it has already become. With budgets almost doubling, from $3M-$6M to $6M-$10M, the report posits that the industry could reach the point that its number of profitable games per year will drop to 80. Of course, the side effect that would come along with this is that publishers would become even more wary of taking risks or funding original games. We're seeing other related effects now, as standard next-gen retail game prices have jumped from $49.99 to $59.99 on the Xbox 360. Smaller publishers and developers would also continue to become consolidated into larger companies, which is a trend that looks to continue regardless of whether this prediction holds true.

The author of the report, Marc de Gentile-Williams, said, "At 30 years of age, the games industry still suffers from an endemic lack of professional management compared to less mature industries such as the mobile telephony and the internet industries. The high number of bankruptcies - despite favorable market conditions - is testament to this fact. Games companies must complement their formidable creative and technological achievements with strong business planning and analysis in order to reap the benefits of the next phase of console market growth".