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During E3 Indigo Prophecy (aka Fahrenheit in Europe) developer Quantic Dream announced Heavy Rain, a new video game franchise, designed for next-generation consoles and PC systems, based on emotional immersion and innovative game play mechanics.
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09-13-10 Heavy Rain: Move Edition gets dated
06-17-10 Heavy Rain gets Move support
05-26-10 Square Enix: we want more Heavy Rain
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03-19-10 Taxidermist arrives April 1st
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Heavy Rain dev: second hand sales cost us 10 million!
Posted on Monday, 12 September 2011 by Speed, source: Gamesindustry.biz
Quantic Dreams' CEO Guillaume de Fondaumiere states that his company has lost between 5 and 10 million euros on royalties for Heavy Rain due to second hand game sales. And if it hadn't been for the economic recession, second hand game sales wouldn't have been so high.
Now, we can also turn this around. Heavy Rain currently gets sold second hand at around 11 euros. If we could get it at discount for that price new, that would mean 11 million euros revenue, of which Quantic Dreams would get between 3.3 and 5.5 million euros, taking the same % as above. So if they would have lowered their price, they might not have "lost" up to 10 million euros, but have "gained" up to 5.5 million :)
“I would say that the impact that the recession had, especially on AAA games on console, was the rise of second hand gaming. And I think this is one of the number one problems right now in the industry,”
“I can take just one example of Heavy Rain – we basically sold to date approximately two million units, we know from the trophy system that probably more than three million people bought this game and played it.
“On my small level it’s a million people playing my game without giving me one cent. And my calculation is, as Quantic Dream, I lost between €5 and €10 million worth of royalties because of second hand gaming.”
If we calculate 1 million users who didn't buy it and an average price of between 17 and 23 euros (in UK at the moment), that means between 17 and 23 million euros. So if he says he loses between 5 and 10 million euros in royalties due to second hand sales, that means he gets between 30 and 50% of every game sold? Nice!“I can take just one example of Heavy Rain – we basically sold to date approximately two million units, we know from the trophy system that probably more than three million people bought this game and played it.
“On my small level it’s a million people playing my game without giving me one cent. And my calculation is, as Quantic Dream, I lost between €5 and €10 million worth of royalties because of second hand gaming.”
Now, we can also turn this around. Heavy Rain currently gets sold second hand at around 11 euros. If we could get it at discount for that price new, that would mean 11 million euros revenue, of which Quantic Dreams would get between 3.3 and 5.5 million euros, taking the same % as above. So if they would have lowered their price, they might not have "lost" up to 10 million euros, but have "gained" up to 5.5 million :)
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