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Monday, April 22, 2013

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Galatea

It's not simply that the pricing was established before serious, high-budget developers were involved. A serious, high-budget developer generally gets $12 for every $60 game sold that they developed. The middle-men in the publishing company get the other 80%. What the publisher's costs are or whether they deserve that much is irrelevant; the bottom line is, even developers of serious, high-budget games are used to selling their games for $12/copy, they just usually sell them at that price to publishers instead of to consumers directly. App stores are disruptive since they let developers cut out the middle-man, and now big publishers that also want to enter this market have to compete with developers who've already become accustomed to selling their games at those prices.

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