A new game is coming out in a week. The game was announced over a year ago with trailers to build excitement for the game. As the launch approaches, more information is released and hype for the game grows. The game comes out and it’s an immediate hit. The only problem is it’s only available on one console, a console they don’t own. Anyone who doesn’t have this console either has to buy the console to play the game or just not buy the game. But what if there was a way that they could buy the game without having to buy another console? With a universal console, consumers would be able to play any game with the benefit of only having to buy one, potentially cheaper, console.
In order to save the consumer money, a universal console needs to be …show more content…
Video games are expensive to create, costing $20-30 million for a game of high quality, require large amounts of staff, several hundreds, and can take long amounts of time to develop, usually about two years (Thinking out of the box; the business of gaming). Companies that create video games dedicate significant amounts of time and money in order to create a successful game. They then need to rely on other people liking their game and buying it in order to make money. This means that a low quality game could severely cost the company money. Developers receive royalty fees from the publisher, usually 10-20%, based on the revenue after taxes, shipping, and other costs (Edwards). This means that the developer only receives between 10-20% of the money from selling their games. That means that companies that make games can make less than $15 for each game they sell. Companies that make consoles also charge licensing fees in order for video game companies to sell their game on the console (Edwards). If there was a universal console, the company that makes the console would already make large amounts of money due to lack of competition. This could allow the company that makes the console to lower the licensing fees, which could, in return, lower the cost of video games for the
In order to save the consumer money, a universal console needs to be …show more content…
Video games are expensive to create, costing $20-30 million for a game of high quality, require large amounts of staff, several hundreds, and can take long amounts of time to develop, usually about two years (Thinking out of the box; the business of gaming). Companies that create video games dedicate significant amounts of time and money in order to create a successful game. They then need to rely on other people liking their game and buying it in order to make money. This means that a low quality game could severely cost the company money. Developers receive royalty fees from the publisher, usually 10-20%, based on the revenue after taxes, shipping, and other costs (Edwards). This means that the developer only receives between 10-20% of the money from selling their games. That means that companies that make games can make less than $15 for each game they sell. Companies that make consoles also charge licensing fees in order for video game companies to sell their game on the console (Edwards). If there was a universal console, the company that makes the console would already make large amounts of money due to lack of competition. This could allow the company that makes the console to lower the licensing fees, which could, in return, lower the cost of video games for the