Analysts Clarify Math: 20% of Games are Profitable

November 24, 2008 3:50 PM

Following claims by Electronic Entertainment Design and Research (EEDAR) president Geoffrey Zatkin that just 4% of videogames make a profit, an EEDAR spokesperson has called the statement a misquote, saying that the actual figure is closer to 20% for released titles.

Said the EEDAR representative to Edge: "What Geoffrey said was that only 20 percent of games that start production will end up with a finished product. And of that percentage of finished games, 20 percent will make a profit."

Which makes 4%, for those mathematicians keeping score.

The original quote came out of a Forbes article on EEDAR, a company that compiles data on past titles that it sells to publishers and developers.

EEDAR hopes its database of historical game performance will "help remove the burden for publishers and developers from having to justify every feature in their title," by "identifying early in the development cycle the correct feature combinations most likely to meet consumer expectations."

Nick Breckon

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SenorSpine

 reply
November 24, 2008 4:03 PM

I'd be interested in seeing the percentage of games with a metacritic score over 80 are profitable.
- Schnapple
  
   reply
  November 24, 2008 4:22 PM
  
  That would be interesting as the COD4's and the Fallout 3's would be weighed out by the Maddens and the SIMS expansion packs (then again the Madden games always get good reviews, even if they basically say "more of the same from last year with marginal improvements")
  - antareus
    
     reply
    November 24, 2008 4:25 PM
    
    Most reviewers don't have the balls to hold publisher's feet to the fire on Madden-esque sequels. :(
    - abovedefault
      
       reply
      November 24, 2008 4:59 PM
      
      why should they? i generally hate the sports franchise games and the people who obsess over them, but shouldn't each game be reviewed as a game, rather than a sequel to another game?
      - antareus
        
         reply
        November 24, 2008 6:00 PM
        
        Because they could just realize updated stats via XBL/PSN as DLC. But, no, its a whole new game. Every. single. year.
        
        antareus
        
         reply
        November 24, 2008 6:01 PM
        
        Ugh, RELEASE. I need to slow down on posts.
    - Schnapple
      
       reply
      November 24, 2008 5:06 PM
      
      Well it comes down to whether or not you want to ding them for just having the mostly same game as last year.
      
      I mean basically the Madden games are football simulators and the fact that there's still some breathing room to improve means that they haven't 100% nailed it yet. So you're basically on some level reviewing how close it is to football instead of how much improved it is on last year.
      
      EA has essentially hit upon the yearly software business model in gaming. Intuit hit it with QuickBooks, Microsoft sort of has it with Office (every 3-4 years). Those reviews get put in the context of "well if you want these new features buy this new version, otherwise hold off until next year", which is the same thing they do with the Madden reviews.
      - matrixneo42
        
         reply
        November 25, 2008 5:21 AM
        
        For me a good football game is:
        1) how fun it is (for me that doesn't mean realistic rules or graphics)
        2) not related to the current players / teams stats
        
        That's true for any sport game I buy. That's why I like the nintendo sports games. They are about the fun, not the realism. Sometimes realism in games is taken too far and the point of playing is lost.