Deering: Just Three in Ten Games Recover Their Costs

Deering: Just Three in Ten Games Recover Their Costs

Speaking at the Edinburgh Interactive Festival, Chris Deering said that developers must turn to new revenue sources in order to cover their losses, reports Develop.

According to Deering, who expects the game playing market to hit 2.5 billion players by 2011, “traditional revenue sources will not be sufficient to fund games development” as the sector grows.

He said that just three in ten games currently recoup their development budgets, and warned that the current struggles will continue in the future as a host of new players including cable, satellite and DSL operators, plus TV networks, enter the market.

“Something is going to have to be there to make up the difference,” Deering said, suggesting that the “creative use of hybrid online/offline advertising revenue models” could be one means of reducing losses.

“Gambling will become a source of development funding,” he added. “Perhaps not directly, but this area can provide some sources of income which [will] eventually be directed back to the developer.”

Deering expects 2.5 billion people to be playing games by 2011. He forecast that traditional home and portable gaming platforms will have an installed base of 500 million by 2011, while other mobile platforms and PCs will account for a billion users each.

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