EEDAR clarifies: only 4% of games that start production make a profit

Posted Nov 24, 2008 at 10:25AM by QJ Staff Listed in: PSP, Xbox 360, PS3, Wii, Nintendo DS Tags: EEDAR
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Analyst Clarifies 4% percent of videogames make a profit report - Image 1A few days ago, a study conducted by EEDAR revealed that only 4% of games ever make a profit.

If you were skeptical of that number, then you are somewhat justified. Because of widespread misinterpretation of that 4% figure, EEDAR gave a follow-up explanation.

Geoffrey Zatkin, EEDAR's president and COO, clarifies on some matters. He explains (follow closely now):

Only 20% of games that begin production will ever finish. Of those 20% that are finished and released to the market, only 20% of them will ever realize a significant profit. That equals 4% of games that start production return a significant profit.


It certainly clarifies a few things. This corrects assumptions that the 4% figure applied only to games that were released in the market. As Zatkin clarifies though, 20% of games released in the market make a profit. But that still means that 96% of all games that start production either fail to hit the market, or fail to make a profit.



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Comments [refresh]

by rollypoly - 2008-11-24 05:41
» thats a bit better...

so one out of 5 released games makes a significant profit?



that's not bad at all...



i could see the need to control that figure in the current market, but in a good economy that seems a reasonable ratio...

by Neo590 - 2008-11-24 13:07
» um no..

4% is 1 out of 25

by rollypoly - 2008-11-24 14:21
» read much?

20% + 1/5



released games, not games started and never released.

by VgSlag - 2008-11-24 22:09
» Lol

Neo590 + FAIL WHALE

by LordRussell - 2008-11-25 06:28
» OOOooooo...

So we're getting beat up by the 'semantics game'?



I have already b1tched this into the ground. Frankly, if a paternal sodomizer has 3 capitalized consonants after his/her name they should have their most notable gender specific appendage nailed to a heavy piece of lumber.



Without going through all this *****e again, just scrutinize the quote. Look for what "was" said and then ask yourself what "wasn't" said.



Like most things biblical, its all left up to interpretation after that...



FTAFTFH....

by blackthorn - 2008-11-25 09:35
» Well

Maybe it's because only 4% of the games out there are actually worth paying for?



Let's face it, there's a couple of golden nuggets for the PSP and the rest are various stages of crap.



I think it's fair to say that you could count the number of honest to truth 'classics' on the PsP on one hand - the rest you just wouldn't care about or play through once only and toss aside.



The industry is to blame for this, not the comsumer.

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