Are you saying that Valve and Itch did not respond to Collective Shout? Well, so did I… My comment was saying they were justified in doing so.
Are you saying Collective Shout are not religious nutjobs? That’s an easy mistake to make because their website and branding does a really good job of trying to hide it from a casual researcher, but the founder Melissa Reist is pretty obviously a devout Catholic- she gives interviews with Catholic organizations, appears at Catholic youth camps, and describes herself as a “pro-life feminist”, which is of course an oxymoron. She’s definitely a religious nutjob.
Okay your first two paragraphs are just ad hominen attacks at this point. You aren’t refuting anything by just claiming I’m backpedalling on… Something? And just assuming the other people didn’t read the article when in fact it seems they did and are also making great points that you’re also just refusing to talk about. Like… Why did you even post this if you didn’t want to actually talk about points, methodology, potential explanations, etc?
Xbox is just plain doing badly. They’ve tried a lot of different approaches to change that over the years: leaning hard into alternative control schemes with Kinect, trying to push Xbox as a general multimedia machine rather than just a videogame console, pushing hard to develop small indie studios, then pushing for mega-acquisitions of publishers and developers. I’m not even sure which “old model” you’re talking about because they are constantly, desperately pivoting to something else. They seem to be terrible at predictjng what consumers want or how markets will react to their decisions. So I’m still waiting for you to explain why copying them is a good idea. As I said earlier: they have always had less focus on exclusivity because their hardware sells at a loss, and they haven’t changed that.
Nintendo is coming off the 3rd best-selling console of all time, the best-selling console in 2 decades. The Switch 2 not only had the best 1st week on history, but the best 1st month too. I suppose it is still early and totally fair if you want to wait for the first full year to make a judgement, but it seems to me like Nintendo produce a unique and innovative product that people want back in 2017 and are continuing that success now. That product is in a very different market than the Xbox, and uses a very different business model where the hardware itself is profitable. They’re the only one of the 3 that hasn’t shut down studios or laid off employees lately. So, once again, the idea that thinks he knows better than them seems pretty far-fetched right now.
There’s something else that’s been bothering me…
He’s done this job for a long time, and people trust and respect his work
I’ve been following the videogame industry for decades and I’ve never heard of this guy. Which is not all that outlandish on its own. But I also have never heard of The Game Business- it seems like a new website just created this year. And you seem to be incredibly defensive of this guy- completely ignoring any discussion of the industry and binging your entire argument here on his credibility. Are you Mat Piscatella himself on a burner account?
I didn’t backpedal on anything at all so I’m not sure why you think that. My initial statement was that he did not provide enough data to reach his conclusion and seems to be drastically oversimplifying the problem to reach his conclusion, by focusing on the unit sales of singular pieces of software in a vacuum and assuming that games are fungible. I pointed out how different videogame companies operate with different business models that are more or less condusive to exclusive 1st party titles. None of that has changed, and the only thing you’ve said to try to dispute any of it is “this consultant said in an interview that he thinks exclusives are bad”. No attempt at discerning causation or explaining it, no attempt at even refuting the arguments I present, just “you should trust this guy, who also happens to be selling a product”. If I wasn’t bored killing time at work I wouldn’t even bother responding because this isn’t really a conversation, you just keep going “nu uh”.
Not just me: You’ve spent this whole thread arguing with myself and everyone else who are pointing out the obvious and glaring holes in what he’s saying.
One of my favorites is this one. Xbox has failed to make a profit throughout the entire history of the company. They’ve spent the last few years shutting down studios and laying people off, which has led to a lot of industry speculation. Insiders have reported rumors that Spencer might get pushed to resign or even fired. There’s been speculation that Xbox might be considering exiting the hardware side of things entirely, in part because of their own marketing campaigns. I am not saying I believe that, but these are strong signs that Xbox is doing badly.
Nintendo, by contrast, just had the single best launch week 1 in the history of videogame consoles. Pretty much every way you look at the Switch 2 sales numbers they are breaking records. And this guy saying that Nintendo should copy what Xbox is doing. That is an extraordinary claim which requires extraordinary evidence for me to take seriously.
And while anecdotes are pretty useless, I agree with you that many publishers have trended towards multiplatform releases and I said that earlier. I’m not disputing that: I’m disputing his comments about 1st party publishers.
If he was lying about any of this, competing firms or their business partners would call him out.
Well first of all, this interview was published today so the only people who have had a chance to really respond to this are the general public on the internet. Beyond that, it is not safe to assume that any of their competitors would have any reason to respond to this publicly at all. Maybe they do, maybe they don’t, and maybe that decision has more to do with wanting to either keep up with Circana or differentiate from Circana than anything related to the truth. That’s kind of the problem with dealing with bias in sampling like this.
People have been saying this exact same thing for decades and it hasn’t happened yet.
And I’m all in favor of the end of exclusivity. Exclusivity is harmful to consumers, and to society as a whole from the perspective of preserving culture and history. But just because I want something to be true doesn’t mean I’m going to believe some consultant casually speculating while promoting his company.
If he provided data and outlined the methodology of projection they used them we could at least have an interesting conversation about this. But right now he’s just about as credible as the 3rd grader at recess whose uncle works for Nintendo and says the next Halo is coming to Switch.
That still doesn’t include most of the data necessary to reach this conclusion, and furthermore the bigger issue is that THE ARTICLE ITSELF DOES NOT CONTAIN ANY. It is an unbacked claim that we cannot verify. If he can’t share the data because ris propriety, he shouldn’t be making the claim publicly.
He’s looking at software sales in a vacuum, and he is probably correct that any singular piece of software would sell more units if it were released on more platforms. That’s not new or interesting: that’s obvious.
What he’s missing, even in the screenshot of claimed data he has, is everything else.
Consultants like this are not trustworthy sources. They’re trying to sell their own product.
Does he have access to the proprietary sales data of Nintendo, Xbox, Sony, Valve, and Google?
I’d be shocked if he did, because those companies are all big enough to have their own in-house departments for that. He’s trying to sell consulting services to smaller publishers. Consults don’t get paid for saying "well I don’t really have enough information to say that for sure*, they get paid for making executives feel smart.
He’s backing it up by misusing data. He’s lumping games together and assuming that they all would hypothetically have the same market characteristics, then extrapolating that to other games.
As an example he brings up how the Pokemon Company has released basically the same software on both Switch and mobile platforms. Which is true, but that does not mean it makes sense for Nintendo to release Tears of the Kingdom on mobile. We can already see that Nintendo knows this because they maintain Mario Kart Tour separately from the console versions. They’re entirely different business models, control schemes, and experiences.
I would argue that a more complicated analysis is required than just saying “multiplatforms are better than exclusives”.
He also just briefly glosses over what is the main BENEFIT to manufacturers: the profits made on hardware sales. There is not a lot of publicly available information, but we do know what each company tends to do. Nintendo prices their hardware above cost, so for them the additional hardware sales could offset the reduced software sales. Xbox prices their hardware at a loss, which explains why they valued exclusivity the least and have finished last in hardware units sold every generation since the original Xbox. Sony usually sells PlayStations at a loss to start the generation, but through hardware revisions and scaling ends up turning them profitable after a few years- a more balanced approach. And we see this reflected in their approaches to exclusivity: Nintendo is super-exclusive, Xbox is loose, and Sony is somewhere in the middle.
You also need to factor in how exclusives impact the ecosystem. The marketing budget for Mario Kart World Tour is not merely helping them to sell the game, but also to sell consoles. And not just consoles, but controllers and cases and branded SD cards and the USB camera and extra docks. It also encourages more software sales: the same person buying Mario Kart World and a Switch 2 might also buy other Switch 2 (or Switch 1) games. Even if they buy 3rd party games, Nintendo is still getting licensing fees. So if they release these big games on other platforms they might gain some revenue, but they lose out on a lot, plus they have to pay licensing fees to Sony/Xbox/Google/Apple/Valve to sell on those platforms.
If we were just discussing software sales in a vaccun then this would be accurate. Any 3rd party publisher has a much easier equation to determine which platforms to release on. Will the additional costs (development of a port plus the fees and asded marketing) be less than the revenue from additional units? It’s a bit complicated because some consumers have multiple platforms and will choose just one to buy the game on. This also helps explain why Sony delays the PC releases: they want to sell as many units overall as possible, but they also want anyone choosing between PS5 or Steam to be pushed to PS5 where their margins are higher.
The author doesn’t have anywhere near the data required to do any of this analysis, so he’s reaching a fundamentally flawed conclusion.
I’m not ruling anything out at this point. It could be a classic case of a greedy corporation pushing out the real artists in order to exploit the art. It could be that the devs (specifically the 3 guys involved in the lawsuit) got lazy after they got paid. It could be both, neither, something else entirely. Honestly with how things go these days I’m just grateful there hasn’t been anything distasteful enough tl give me qualms about playing Subnautica.
After the last decade or more of people complaining about greedy publishers forcing devs to release half-baked messes too early (Cyberpunk, No Man’s Sky, etc), it feels like I’m living in a bizarro world to see so much criticism for a publisher delaying a game to (allegedly) make it better.
The public does not have enough information to judge the relative probabilities. Krafton has that information and has every incentive to release the game as soon as possible, and they still chose to delay.
That’s how bonuses work. If it was guaranteed regardless of how the company perfroms, it wouldn’t be a bonus.
It is entirely possible that, even if they had released Subnautica 2 in its current state right now, it may not meet sales expectations and no one would get a bonus anyways. They could make a great game and the marketing team drops the ball- no bonus. They could market like crazy but the game sucks- no bonus. Data breaches or corporate embezzlement or world war- there are tons of factors that could prevent them from meeting those goals.
The amount is also important because it is being used by the position to try to support an argument that Krafton made this move in order to avoid paying the bonus. When in reality the cost of that bonus payment is probably a tiny fraction of what they are losing by delaying the game.
Personally I hate bonuses, and I have always advocated at my company for more of the payroll to be structured as salary. But other colleagues of mine really like bonuses. They like the increased reward and risk involved. It comes down to risk aversion, so I’m not going to call those people or employers evil or anything just because it’s not my preference.
I’m also not defending Krafton’s decision to replace the leadership and delay the game. Personally I suspect that they did so in order to add more monetization to the game, but that’s impossible to know until reviews start to get published. I will say that no one should pre-order the game, but I would also say no one should pre-order any game. Why are people pre-ordering games at all?
And what if Krafton is right? What if the game is actually in a state right now that would disappoint customers? Seems like for the last decade every videogame community has been complaining about games being released as unfinished and buggy meses. No Man’s Sky and Cyberpunk for example. Any time Nintendo delays a game, all their fans applaud and share the Miyamoto meme (“a delaged game is eventually good, but a rushed game is forever bad”). So I’m really surprised to see that a publisher has come out and admitted that they think the game needs more time to meet customer expectations and instead of applauding them for taking the loss the Internet is instead promoting these weird conspiracy theories that don’t add up to explain how it’s actually bad.
The $250 million bonus was due to kick in if Unknown Worlds hit certain revenue targets by the end of 2025
The whole key to this is how the bonus is structured, and that is unknown still. They very well may have just been something like “10% of net profit, capped at $250 million”.
If the whole cost of the game was JUST $250 million, that would put it in the [top-15](The $250 million bonus was due to kick in if Unknown Worlds hit certain revenue targets by the end of 2025) most expensive games we have official numbers for. This doesn’t pass the smell test.
Bloomberg reported that the bonus was tied to revenue targets. So the $250,000 estimate must be estimating significantly higher revenues for them in 2025.
What you posted is just the sales on 1 platform for 1 game, whixh came out in 2018 when games were cheaper.