It’s not unheard of these days for video game projects to outdo revenue and development costs for blockbuster movies. Projects are being developed all over the world to release on exclusive platforms or multiple platforms. Cyberpunk 2077 for instance probably took quite a bit of money to bring out and it’s slated for a launch on multiple console platforms and even cross-generational releases. However, it’s always a risky move to pour so much money into a video game without any real insight as to how it will perform.
Some games can be massive flops while others may flourish with a fan base eagerly waiting for a sequel to hit into the marketplace. However, one thing is for sure, players are not afraid to call a video game out if it doesn’t live up to their expectations. As a result, there’s the fear of putting all this money into a project that won’t be well received. Sony’s PlayStation CEO is all too familiar with this as he spoke on the risk of making a new IP.
Speaking with GQ PlayStation CEO, Jim Ryan, spoke of how games cost a lot of money and while they had a few notable hits on the PlayStation 4 which were based on new IPs, such as Horizon Zero Dawn, these IPs are very risking things to do. In order to spend the money, you really need to believe that the project will have a box office size release.
“The thing with those blockbuster games is that they need a box office release. They cost more than $100m dollars to make these days and in order to be able to do that and bring new IP to the market – which is a very risky thing and and we did four times in the PS4 generation – you’ve got to have a box office release.”
This is where indie games have really blown up on the scene. They are smaller scoped projects and offer something new for players. Some games really take off and become massive hits while others can end up on some hidden gem lists. Unfortunately, for those large productions, it’s less likely to see something that changes the formula too much that would potentially result in a financial disaster.