So then, best case, we assume that the average wholesale selling price over time is $30. That gets us to $30 million in wholesale revenues, best case.
Take out cost of goods, take out all the fixed costs like SG&A, some small percentage for marketing (because although there aren't ads or anything, they still had to make the box art) and of course studio burn over what seems to be quite a long course of development and that gets you to...
No, 90k units aren't really very good sales for the first month of a game.
It looks like these types of games cost $40 million to make in the PS3 era. That includes development, marketing and distribution. I assume doing the same thing for a PS4 game would cost more and the fact that this game switched from a PS3 game to a PS4 game adds even more to that. So I too don't think it looks good for the game.
And, at some point, the number of games being made will fall to the point where it crosses a threshold and the Consoles will become less appealing even to the Core market and hinder adoption among even the best customers for Consoles.
Right now, the core niche is still buying traditional Consoles, and price sensitivity among this core is so low we have historically high hardware pricing. The core will buy these consoles at these high prices at about the same rate they would at a lower price, while the mass market won't adopt much faster at all at the realistic potential lower prices.
It's not going to get better for Consoles as they are traditionally known.
But we'll still get data slices that "prove" everything is fine, when it just isn't. "If you only compare these selected consoles versus these past selected consoles, in these specific time frames, sales are great!" But the new economics really don't work for anyone. We're in the peak year of the PS4/Xone if you look at the historical trends, and nothing on the horizon leads any optimism to a rebound in this space.
You have only a handful of publishers providing a majority of big, mass market content. All it will take is each of those producing one fewer mass targeted game a year, or for one to focus more in other areas (Activision comes to mind), and you can imagine how tenuous the whole thing gets very quickly.
I agree that this could happen to gaming, but that doesn't justify any old game getting made. The thing about console gaming is that you have to buy the specific platform to even have the ability to buy the games. This isn't something like TV. All programs can run on any TV. The consequence of this is the trap that Microsoft fell into when they tried to make the XB1 more inclusive.
There is a minimum level of content that can be supported by the consoles. Once you go below that level, the people who would buy it won't pay the $300-$400 dollars for the console to play it. In Microsoft's case, their appeal to the more general audience fell flat because the people it would appeal to could get the same or similar features on a $100 or less multimedia box.
For console games, if you make the games too casual then you start competing against web based games, or now the Apple TV and Nvidia shield. For example, a person who is hooked on Candy Crush isn't going to see any benefit in spending the money to buy a console to expand their gaming possibility. Candy Crush can't be made any better with better hardware. There is a real hard lower limit to how broad you can expand the console's appeal.
In my opinion these types of games are flirting with crossing that line. I think they are like the Wii and Kinect in that the initial novelty of these games caused the curious to buy them. Once that novelty wears off they are going to have to stand on their own two feet. I see the lackluster sales of Until Dawn and The Order as an indication that they won't be able to do that. The people who will plop down hundreds of dollars to buy a console want more agency in their games.
So while I agree that consoles need to broaden their audience, they also have to do it within the constraints of the types of games that will appeal to people who see value in buying a console in the first place. Cinematic games aren't the only other alternative type of game out there. For example, I'd like to see more experimentation in the following types of games on the consoles.
- Moba/RTS: Battle for Middle Earth
- Arcade flight: Crimson Skies
- Arcade sports: Deathrow
- Arcade racing: Burnout Revenge
- MMOs: Guild Wars 2, Everquest Next
- Mechs: Mech Assault
On top of that do any of those as a VR game. A real killer game I want to see, excuse the pun, is a VR coop horror game.
So I agree that consoles need to experiment. I just want them to experiment in a different direction.