Do great video games decrease company profits?

Out of the hundreds of computer games and video games I’ve ever tried, there were a few that I played for a long time.

It seems like really good games would lessen the amount of game buying with the exception of sequels and expansions. As an example I’ve never played the ssx series but I just got ssx 3 and I probably will just play that and not look for other games for quite a while just because its so much fun for me right now.

So do big software companies who publish many games a year make more money if those games are all decent, or is it best for them to have an awesome game and sell sequels?

I mean the sims seems like a great example for the latter with so many people really into it, but I think thats because it broke into a whole new group of people who wouldn’t have bought any games otherwise.

Blizzard seems to be doing all right for themselves. And they seem to release, what, one game every 18 to 24 months at the most?

And they also continue to support a game long after it’s released. How many years was it between the Starcraft expansion and the last patch for it? And I’m pretty sure that Battle.net (Blizzard’s online gaming servers) still supports Warcraft II, which is even older. Although I have wondered, along the lines of the OP, what’s in it for them to do so.

Customer loyalty. If a new game or expansion comes out you get alot more sales if the previous game is still alive and being played. I have heard from so many people that they are going to buy and play the new blizard MMORPG “worlds of warcraft” for the mere fact that it is made by Blizzard.

A loyal fanbase who will buy anythnig they do from now until the end of time.

And their Battle.net servers makes for a great testbed for MMORPG technology too.

If a company has a hit game then they do make a truckload of money. Whether or not it becomes a sequel is up to the developers. From a business perspective, it’s great. You’ve already proven the technology and all you have to do is add a few bits and pieces, some new units/weapons/map and can sell it for the same price as a full game.

The major advantage is that you’re not fluffing learning to use a new engine. This means less money is spent on R&D and the game get shipped quicker. A good example is GTA:Vice City. While the basic game engine is the same as GTA3, they’ve redone the graphics, sound and gameplay to produce a new game.

By recooping most of their development costs on GTA3, the profit margins on GTA:VC and their X-Box ports must be ridiculously high.

Yes, great video games do decrease company profits. And great message boards, too.

Don’t forget that when a group designs a great game engine, they make money from use agreements with other companies. This is probably most evident in the FPS arena.

Some of us would say that proves the OP’s point. :wink:

Super successful games become super successful franchises. A franchise is worth a lot of money.

But what would really be a bonus is having MANY really good games. When I am done playing a fun PC Game, I wouldn’t mind going out and buying ANOTHER good game.

All too often, I go out and buy an inferior product.

For what it’s worth, I work for Sony as a game designer.

The game industry, like the movie industry, is hit-driven. You need those blockbuster hits to offset all the money lost on failed or cancelled projects.

Big hits do cannibalize the sales of similar games. But the console manufacturers try to minimize the effects of this through their approval process. So, for example, if they know a big snowboarding game is due soon they won’t approve another snowboarding title from a different studio. (They’ll ask the other studio to delay it, or change it to a mountain biking game, or whatever.)