1. Before you decide to blame it marketing, you do know
Games have never been cheaper..
I'm well aware that, factoring in inflation and development costs, games are much cheaper than ever (ESPECIALLY factoring in the prevalence of the used games markets). Blaming over-budget spending on exorbitant marketing isn't THE only reason for budget woes... I was just pointing it out as an example of A reason for budget issues.
2. If we take inflation into account from 2005 to 2016(When 60$ games were introduced), the price would be around 74$. This means, we should have got an increase in gaming costs. We are over due for an increase, yet prices have remained static if not dropped. Partially due to the birth of Digital, where they can trim 8-10$ off production costs. Though console games aren't as fortunate.
I'm well aware. I'm not young anymore. I remember there was even a period during the N64 days where my stores were selling Killer Instinct Gold for $80. Cartridge prices early one were obscene and it's no surprise developers flocked to cheaper discs and have, over time, trimmed out things such as instruction booklets or punched holes in game cases to save on costs (and, as you mention, digital is the cheapest and most profitable option available to them).
The bigger, more important reason is they can now get additional money after the project is released. Even though you're praising Souls. They have Deluxe Digital additional with DLC. They are earning an extra 25$.
True, and I have NO PROBLEM with DLC that adds value to a game while the game itself can unquestionably stand on its own. Dark Souls 1 is a great example where they didn't even plan on any DLC but decided to do some after release to further add lore and mystery to the universe, yet you can enjoy the entire Dark Souls experience without feeling like they held content back or that you're missing out on important bosses or lore. It was supplementary content rather than prime content, and they've walked that fine line like champs.
The point, though, is they still make and release games on a shockingly limited budget with a surprisingly small team, so that even without the DLC, they make a profit and are financially successful if even a million copies of their games are sold.
That's much better than some companies that bank on the DLC to keep them afloat to offset costs.
You also have to include it takes more to hirer programmers now and you need more, even for mid tier development. You bring up Souls, but that is still costing around 10-15 million. Probably even higher now with III. 10 years ago, mid tier would have been around 5 million or less.
Mid-tier is still around 5 million. The difference is Dark Souls graduated from mid-tier to upper mid-tier. It's audience grew, along with expectations. But, rather than cave in to the "let's toss everything and kitchen sink approach" to the games, they've still been reasonable and kept their growth and development costs down compared to everyone else. A Souls game costing 10 million is RIDICULOUS cheap compared to the over 500 million Activision invested in Destiny. And that's the big issue; companies looking at the big, blockbuster, expensive games like Destiny or Grand Theft Auto or Assassin's Creed and feeling that the only way to stay competitive is to drop gargantuan amounts of money at their problems and hope it turns out... when you could've made FIFTY Dark Souls games for $10 million for that same investment.
The reason they also have to do it is very simple too. There are more games out there than ever before. This isn't walking into Funcoland anymore and seeing the titles. Every week, you have 10-20 games releasing. The world is far more competitive now. Even Indie developers need to market their games correctly. Gone are the days of just a title getting released on Steam being enough to make it a success. Not even including the thousands of mobile games.
Right, and a great way to stand out from the crowd would be to stop copying the expensive and often unpredictable business models of the absolute most high-budget games leading the market and to instead work within your own limits to find something truly unique and special. Portal was made by a bunch of college interns for Valve. DOTA started as just a bunch of fan mods. Wii Sports is a cheap but effective tech demo for motion controls. Dark Souls was just a small and dedicated team with a vision. Even the Elder Scrolls and Fallout teams are jaw-droppingly small compared to their peers because they don't want development to spread too thin and neuter their team dynamic, even if that means working with aging engines and lots of jankiness. They just focus on what matters, even if it means rough edges.
You can't apply logic that worked 10-15 years ago for developers into today's modern world. There is more competition, more costs, more venues, etc.
Which is precisely why the most important parts of a game should be prioritized: the core experience and player accessibility.
It reminds me of the music industry fighting against digital distribution. Why buy anything when you can now download it for free? And yet iTunes and other digital platforms now thrive because people are innately, well, lazy, and convenience is something people will pay for. Artists started making more money off of $1 singles sold on iTunes and Amazon than they had with $20 CDs sold in record stores.
When developers of a game create barriers for players to jump through - spreedsheets of which retailer and which version has which pre-order content, DRM that bogs down your computer, always-online in singleplayer games that doesn't always work, game mechanics skewed towards punishing and frustrating players in the hopes they'll buy microtransaction boosters or content, etc. - you create an environment where more and more players might feel it's just not worth the effort. You have to admit, far too many games have the stink of businessmen attached to them, jamming in microtransactions and online features nobody needed or asked for because they viewed games as a "service" and were too obsessed over the core game as a base platform for DLC distribution instead of being a stand alone experience (remember when Evolve advertised it's DLC before we'd even seen a single slice of gameplay footage?).
And the single biggest reason why this happened are the very people in this thread. We wanted bigger, we wanted more, we wanted better.
Then companies took away the wrong message. Bigger isn't always better. More isn't always satisfying.
It's like the Star Wars prequels. For years, people wanted to know the history of Darth Vader, the history of the Jedi, the history of the rise of the Empire. When we finally got those answers, we collectively realized we were better off not knowing and keeping those answers vaguely tied to our collective memories and interpretations.
Smart developers and creators know how to filer what audiences THINK they want from what they ACTUALLY want. In fact, following gamer trends is what homogenizes games and makes everything so same-y.
Kevin Levine once stated that Bioshock wasn't something ANYONE was asking for until they announced it, and that that's the secret to making something special. Finding that thing people never even knew they wanted, rather than giving them the same things they always ask for.
Think it's coincidence that gamers are the one who killed the mid tier development on consoles, while pouring all their money into large publishers like EA, Squeenix, Sony, MS, etc. They are simply following the trends of the market driven by console development. Mid Tier has since moved to PC, in largely the form of Indie development or smaller companies trying their luck.
Don't count mid-tier out just yet.
LOTS of great mid-tier games have been coming to consoles lately and a huge ton of indies are thriving on consoles (PS+ and Games with Gold freebies are certainly helping). Ori and the Blind Forest, Cuphead, Journey, Bound, Below, Unfinished Swan, and even mid-tier games like ReCore, Gravity Rush, and TONS of quirky Japanese games too numerous to even mention (Earth Defense Force, D4, Deception IV, etc.) all carry the mid-tier torch forward, and even big companies like Capcom and Square Enix have released budgeted games like Resident Evil Revelations 2 and Life is Strange to much profit and acclaim. Companies like TellTale have their bread and butter doing mid-tier games to great success (just bought Wolf Among Us. It's fantastic).
Also, Souls is no longer Mid Tier, it hasn't been since Demon.
Are we arguing budget or quality on this one? It's certainly a AAA franchise, with a comparative higher budget, production, and marketing than many other titles... but it's also a fraction of the size and cost of the industry's biggest and most expensive and successful franchises.
As you said, a budget of $10 million is extremely high compared to any B-list game or indie game, but it's nowhere near the cost of an Assassin's Creed or Call of Duty or Grand Theft Auto release. If GTA5 cost over $265 million to make, that would be the equivalent of over 26 Dark Souls games, because FromSoftware prides themselves on keeping costs down.
If I remember correctly, I think Dark Souls was even cheaper to make than Demons's Souls, because the hardest and most time-consuming part was creating the engine and programming and workflow for Demons's Souls. Dark Souls was cheaper to develop since the infrastructure was already in place and they recycled a huge amount of elements into Dark Souls - from animations to models to sound effects.