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Games Developers Profitability Fears
As games become more complex and sophisticated, rising development costs mean many new titles won’t see a profit until 2008 according to a recent report. Large development teams add to the cost of bringing the games to market which in turn affects profitability.

Published by Media analysts Screen Media, the report suggests next generation games are so costly to produce that publishers may struggle to recoup their development and production costs.

Game publishers are already addressing the issue it seems. Many are making new games available across a wide selection of platforms to ensure maximum market coverage. Some favour sequels to existing games or film-based games in order to minimise development work.

Sony has adopted a different approach, preferring to play the ‘exclusivity’ trump card instead. The company believes their console sales are prompted by the quality and quantity of games available exclusively within that format – the company are one of the largest makers of games, employing over 2000 development staff throughout the world.

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