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View Full Version : EA general manager discusses rising development costs.


ilnadmy
12-02-2006, 11:55 PM
http://pc.ign.com/articles/748/748707p1.html

December 1, 2006 - In a recent Q & A session with GamesIndustry.biz, Alain Tascan, general manager at EA Montreal claims that the cost of making games has become "crazy" in recent years. He predicts that this rapid increase in development costs can only result in a restructuring of business models.

During the session, Tascan indicated that this shift would likely occur soon, saying: "I'm not sure that the model we have here will be the model in 15 years, and that the EA you know today will be the EA you know then. I'm sure we'll do things differently, just because of the cost. The cost of games now is crazy."

The interviewer then challenged Tascan by asking him whether it is the fault of larger game companies such as EA for driving up the cost of game development. To this, Tascan replied, "I think a lot of other companies are spending even more money. It's people who want that, it's not EA per se," he protested. "I said to some of the guys here, 'The gamer is not buying lines of code; you have to promise him enough entertainment for him to put his hand in his pocket and buy the game.' It's a lot of money, so you need to give him a show, and we're just here to deliver the show."

Tascan proceeded to harangue the public for its misconception that EA always employs huge development teams, pointing out the standard 35-85 staff members on an EA Montreal-developed game. "We take more time. It's a different approach that they let us do… Small is beautiful," he added.

Tascan finished up the Q & A session by citing the various possibilities still left for smaller games companies who might otherwise be pushed out of the industry because of skyrocketing costs. "I think there are other ways to consume entertainment today - mobile phones, casual games... Games that take a shorter amount of your time are something where a smaller company can really have fun."

So even EA is concerned with the rising cost of game development. I wonder if this will lead in the future to more episodic games, in the style of Half Life 2 Episode 1, 2, etc... I personally don't think episodic games are the way to go, but they do seem like they would drive development costs down, since you would develop one engine basically, and then just add new levels, story, characters, etc... for each episode.

I would still prefer an entire game, where you just shell out $50 for an entire package, without having to wait for the next episode to be released in order to get to the end of the story.

It's interesting to note though that while console games have gone up to $60 a pop, PC games are still at $50. I wonder if that's because development costs haven't risen as much on PC, or if it's because developers are wary of raising costs of PC games (perhaps they're even making their profit off the console games, and are willing to make a little less on the PC side).

Knowing this though, it's not surprising why developers are crazy about the Wii. Lower graphics capabilities means lower development costs, not to mention huge demand for the system. Nintendo might be the trailblazer in this regard.

Still, this does raise a few concerns about where the industry is headed, and whether new developers will have a chance at breaking into the big-time or whether they'll be relegated to indie, low-budget cellphone/handheld games.

joquito
12-03-2006, 07:00 PM
http://pc.ign.com/articles/748/748707p1.html



So even EA is concerned with the rising cost of game development. I wonder if this will lead in the future to more episodic games, in the style of Half Life 2 Episode 1, 2, etc... I personally don't think episodic games are the way to go, but they do seem like they would drive development costs down, since you would develop one engine basically, and then just add new levels, story, characters, etc... for each episode.

I would still prefer an entire game, where you just shell out $50 for an entire package, without having to wait for the next episode to be released in order to get to the end of the story.

It's interesting to note though that while console games have gone up to $60 a pop, PC games are still at $50. I wonder if that's because development costs haven't risen as much on PC, or if it's because developers are wary of raising costs of PC games (perhaps they're even making their profit off the console games, and are willing to make a little less on the PC side).

Knowing this though, it's not surprising why developers are crazy about the Wii. Lower graphics capabilities means lower development costs, not to mention huge demand for the system. Nintendo might be the trailblazer in this regard.

Still, this does raise a few concerns about where the industry is headed, and whether new developers will have a chance at breaking into the big-time or whether they'll be relegated to indie, low-budget cellphone/handheld games.


You bring up an interesting point. So if PC game developers have no problem keeping up with the latest tech in videocards, and also making them compatible with current or older videocards, why should it cost more to develop for consoles? The first games may cost more, but 3 years down the road, it much easier because the tech hasn't changed. So I believe the game prices have been raised because developers felt customers would believe the next gen/cost more excuse. I may be wrong but I assume developers make more money on console games than PC games on average due to larger markets and less piracy.

ilnadmy
12-03-2006, 09:11 PM
Yeah, I'm pretty sure consoles make devs more money. After all, why do even the most successful PC games find their way to consoles? All you have to look at is the number of PS2's (110 million) to realize that the console market is huge.

I'm sure development prices have gone up, since now more people are required to code a successful game, but I just think devs prefer to jack up the prices for the console versions since it's more acceptable to the console audience than the PC audience.

Mochan
12-04-2006, 03:34 AM
I'm pretty sure console games make more money, I don't even need to look at NPD sales to know that. However I think this is largely due to a larger market more than anything else.

Also I think the piracy angle is overrated for PCs, and underrated for consoles. You guys aren't exposed to it but PS2 piracy (and PS1 before it, and SNES/Megadrive/Genesis/NES/Famicom before that) was totally rampant in Asia, and probably other parts of the world as well outside of North America.

Piracy on the PSP is also bonkers, and people can also download PS2 and even Xbox and DC ISOs off the web you know. The only system last gen I didn't encounter any piracy for was the GC.

And believe me when I tell you, piracy on the PS2 is way way way way way larger than piracy on the PC.

ilnadmy
12-04-2006, 04:12 AM
And believe me when I tell you, piracy on the PS2 is way way way way way larger than piracy on the PC.

I can attest to that. Where I'm at, you can buy a "chipped" PS2 that is region-free and can play pirated games. Then you just go to any flea market and get a PS2 game for about $2.5 - $5. In fact, most, if not all, PS2 gaming around this part of the world is done through pirated games. That is one of the main reasons, like it or not, that the PS2 was so popular worldwide and sold so many systems.

ilnadmy
12-04-2006, 04:43 AM
http://play.tm/story/8625

Article on video game stagnation

But beautifully crafted and genuinely innovative games such as Okami, LocoRoco, and Guitar Hero (though all critically applauded) are largely ignored by the buying public - Okami's creators now being out of business. Ultimately, we only have ourselves to blame for the lack of creative growth currently throttling our videogame choices, we only have ourselves to blame for the resultant absorption of small inventive studios by the formulaically dull publishing behemoths, we only have ourselves to blame for the relentless onslaught of profit-margin safety through rehashed content, and we only have ourselves to blame if we continue to support its damaging proliferation by buying it.

NEO-360
12-04-2006, 05:36 AM
And considering that its going to cost even more to support the new technolgy that the PS3 will be sporting over the 360 and the Wii this could get rather interesting. Its a crying shame that development costs is going up like this. But I guess it was only a matter of time. The more advanced consoles get the higher the development costs gets as well.

EA is one of the biggest companies for Nintendo, MS,and especially Sony. Its going to be a battle thats for sure. But in the long run at what price? :mad2:

Mochan
12-04-2006, 07:34 AM
Yup, I'd say at least half of that installed userbase of 100 million have never bought a real PS2 game in their lives.

$2.5 - $5? Expensive! PS2 games are under $2 here.

Would be funny if MS and Sony knocked themselves out of developers in the long run.

Cuddly Knife
12-04-2006, 08:44 AM
I blame the devs for everything. Why is it that Sgea was selling 2k for current gen for 20.00usd, and next-gen versions for 60, when it was the same game minus a few things? Same for EA and Ubi for their 40$current gen hits versus their 60$ 360 versions. MS and I'm sure Sony(for PS3?, Ocelot?) sells their first-party games for 50.00$.

Maybe if companies didn't make rediculous-looking FMVs and tell everyone the game will look like that, and because they say that they have to hire 120 people to try and accomplish that goal, well, then they wouldn't have to charge a nut for a game. j/k. but not really.

Do the piraters outnumber the amount of ignorant parents/others who blindly purchase any system for someone else? Everytime I go to the store, any store, there is someone who is doing that very thing.

Mochan
12-04-2006, 09:05 AM
Could be. In NA and Europe you have smart gamers who buy the right hardware, and some people who do that stupid thing. In Asia, you have the same kind of buyers, but all of them are pirates.