Why Traditional Retail and Niche Games Don't Work

[Tim Brooks]

An excerpt from our most recent Blog:

The Big Picture – 2004

Okay now for all those numbers… Last year, sales of Computer Games (and I am not including Video Games – the Console Game Market) was down $100 million dollars from the $1.2 billion mark in 2003. There were two, count ‘em, two games that had sales of 500,000 units and 18 games that had sales of 250,000 units or more. It is projected that less than 6% of all Computer Games made a profit. Based on the varying definitions of what is a new release, it is hard to know for sure how many products were released in 2004, but a number that I can live with is 1100 titles (in 1999 that figure was over 2200 titles). The average budget for development of a computer game is now over $2 million per title. And the average breakeven point in unit sales is around 110,000 units. The average retail price point is $24.45. And the average game at retail sales under 5,000 units!

Read this blog here.