Namco Bandai Claims 500,000 PS3 Game Sales Required

Namco Bandai Claims 500,000 PS3 Game Sales Required

Namco Bandai president Takeo Takasu has said that PS3 games developed by the company need to sell 500,000 copies before they turn a profit. Graphic development costs alone more than double those required for the Nintendo Wii.

"We have to sell at least 500,000 copies per title worldwide to make a profit on PlayStation 3 games," said Takasu. According to the Namco Bandai president, it costs $8.6 million just to create the graphics for PS3 games, more than double the Wii's development costs.

With such a high number of sales required to make money on PS3 game development, there are growing concerns that publishers will take a step back until PS3 consoles are more established in the market. "Game makers may hesitate to make games for a console if its shipment is being delayed," said Yuuki Sakurai, who helps manage $6.02 billion at Fukoku Mutual Life Insurance Co. in Tokyo. "Some game makers may wait until a console becomes popular because of increasing production costs."

While Sony continues to shoot for 1 million PS3's shipped by the end of the year, EA president Larry Probst believes the console maker will only manage 500,000 to 800,000 units. With low initial tie-in ratios, it may be some time before publishers feel confident about releasing big budget games exclusively for the system.

Source: Bloomberg Japan


Shawn Andrich:
Namco Bandai Claims 500,000 PS3 Game Sales Required

Why is an article from five years ago showing up on my front page news tab?

You don't need to make crazy graphics for every game.


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