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Microsoft and Sony sign deal to keep Activision’s Call of Duty on PlayStation::Microsoft and Sony have signed an agreement to keep Activision’s best-selling Call of Duty series available on PlayStation, after the conclusion of the deal.
This is where economies of scale comes in though, especially in tech where you’re offering an ephemeral product. Even at say US$10 if you get a million subscribers (not too hard to do, netflix had many times that number at their peak) that’s US$10 million dollars. Which you would think should be more than enough to punch out a bunch of relatively low budget productions, pay your neccessaries and still leave you a good chunk of change I feel.
You can feel that way but you’d be wrong. Game development costs are enormous these days, 40million has become the norm, quality games that make sales and gain subscribers cost north of 100 million by themselves, not factoring in marketing costs.
“Call of Duty: Modern Warfare II generates over $1 billion in 10 days”
Sounds like a bit more than the 10 Million you proposed, and thats only 1 game. It wouldnt be possible to keep up with quality when returns would diminish a ton