From a Marketing stand point the larger the game the larger the revenue potential. For instance Mario Galaxy, Halo, and Gran Turismo and huge because of the revenue because their publishers PIMP them out to every possible revenue stream.
Example. Halo was promoted through Burger King, Mountain Dew, and some clothing manufacturers.
Mario was and still is promoted in Mc Donald Happy Meals, Soft Drinks, etc
Gran Turismo and a car commercial with gameplay.
These games sell themselves and merchandise. They really don't need demos nor much of any marketing push.
The same can be said for Half-Life, Doom or GTA. In GTAs case Microsoft was willing to pay the publishers for exclusive content.
Sony is unwilling (at least publicly) to do the same. It appears Sony is at a standoff with Publisher because:
* they have the most in house developers
* more sales (considering the PS2 is still selling at a above 100 dollar price)
* Better brand loyalty
Off topic... The PS2 confused the heck out of publishers because of the DVD capability built in. They based sales projections of some titles based the PS2 user base which simply dwarfs the competition. But did people have them to play games or watch movies? There in lies the paradox.
Have said this, today... the publisher is now in the position to negotiate exclusivity and licensing. It's getting very PC-ish in the console arena and rather than let publishers get a free ride at Sony's expense Sony is nipping it in the bud and getting their small slice of the sales revenue "pie" (yes. pie. cake sucks.) and at the same time they are giving a fair shake to publishers in offering distribution alternatives.
* Cheaper to publish download only games on.
* An almost pirate free platform. (Publish on PS3 and you get more legit sales per copy. Xbox 360 will likely yield lose in revenue)
* Semi-open architecture which encourages various revenue retention schemes with truly FREE DLC.
* Open to "design your own experience" distribution schemes.
Its a win win... when you consider the alternative.
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