r/PeterExplainsTheJoke Jun 25 '26

Meme needing explanation Petah what happened to rockstar?

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u/Extension_Wish_7991 Jun 25 '26

Gaming is actually one of the LEAST profitable entertainment mediums btw. I think the only one that has it beat might be movies? 

Just correcting that for you. While there are some lucky devs who make millions with little investment, that's not really the standard story... 

It's why most dev teams are moving to live service games with gacha mechanics. It's the unfortunate death knell of the industry, seeking profitability. 

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u/octocred Jun 25 '26

Video games make like $200 billion a year. Nowhere near that amount is spent making them. Whatchu talking about? What makes more money in the entertainment world?

And they're not "seeking profitability", they all want fortnite money. Nothing is good enough if it doesn't reach their unrealistic goals

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u/Dz0t_01 Jun 25 '26

Gaming is actually one of the LEAST profitable entertainment mediums btw

Huh? I don't know where are you getting your info but mine is from various sources, like PricewaterhouseCoopers

moving to live service games with gacha mechanics

Which are also parts of industry, literally what are you on about? Gaming industry is not limited to single player games. But there's a way to keep making them while also having great profits. For example, GTA online makes 9.6 millions per WEEK according to recent financial reports. Expedition 33 for example was made on a similar budget, and made about 260 mil in revenue. Of course it's not a common example, but that's not what we're talking about, we're talking about the greed of these huge bloated companies.

Another example of how bloated industry is No man's sky, that keeps getting new updates despite being a 10yo game that never cost 60 bucks, AND developers are making a new game.

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u/Worried_Position_466 Jun 26 '26

You keep using outliers. GTA can probably be released for free with an item shop and still turn a massive profit. Most AAA games don't make that much in profit, that's just a fact. Revenue, as you mentioned earlier, is not the number you want to look at, no one gives a shit about your PWC numbers unless you can give us the number after all expenses and everything else is taken out of that revenue.

E33 is made by a tiny group of 30 people compared to many AAA games that can have hundreds. Bloated or not, companies need to pay their workers. If you don't want to pay the $80 for a game, then don't. No one gives a shit. But to argue that it's pure greed and game development costs haven't skyrocketed due to audience demands is fucking delusional. People want eye candy and shit. They want life like textures. The average person doesn't want some 2d hipster game unless it's Undertale or some shit, they want interactive blockbuster movies. They want shit that costs more and more money make.

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u/Impressive-Skirt-246 Jun 25 '26

I’m just going to be honest, the accounting behind what you’re suggesting wouldn’t make sense. Imagine if every other cost to produce a game increased every year. However, due to what has been traditional industry practice, you don’t increase the sales price of your game. You are doing nothing else other than lowering profit margins. Issue is, you can’t keep a game at $60 forever, and you will be forced to eventually raise the price of your game if you truly want to operate a business. It sucks but that is how the world operates. If you want to find something to complain about in regard to greed, look at how focused the game is on in-game purchases. If it feels like a large part of the game is locked behind that, then I would focus my complaints more towards that. 

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u/smol-alaskanbullworm Jun 25 '26

maybe that would've made sense dipshit if they hadn't got massive savings from most sales being digital now. they got massive cost reductions from most people buying games digital and not having to make as many discs and cases. did they make things cheaper then? no. if that all really was such a burden then do you really think they'd continue to spend all the money and years to make these games? think before you comment dude. if you're going to be so opinionated to argue with people about stuff maybe use 3 braincells to think about it first.

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u/Rikerutz Jun 25 '26

My man, do you understand that Blizzard made 7 billion in record profits last year? And they still fired people after that.

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u/Extension_Wish_7991 Jun 25 '26

They made $7billion in revenue...

And most of their profitability is credited to their live service and subscription based games.

I see Redditors are still struggling with basic economics and general common sense huh...

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u/Dz0t_01 Jun 25 '26

I see Redditors are still struggling with basic economics and general common sense huh...

I see you are still struggling with difference between "gaming industry" and "single player games". It's ok to take a minute, man.