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Video Game Development Cost vs. Units Sold. Introduction Topic: Video games Why: Fun Question: Does the cost of video game development affect the sales.

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Presentation on theme: "Video Game Development Cost vs. Units Sold. Introduction Topic: Video games Why: Fun Question: Does the cost of video game development affect the sales."— Presentation transcript:

1 Video Game Development Cost vs. Units Sold

2 Introduction Topic: Video games Why: Fun Question: Does the cost of video game development affect the sales of the video game?

3 Background Information Development cost – the money spent to create, advertise and ship the video game Units sold – number of copies sold during first ten weeks after release The video game industry made $10.5 billion in revenue in 2009

4 Hypothesis As the development cost increases, the number of sales increase Makes sense This much revenue would require profit in the majority of video games sold

5 Data Obtained using convenience sampling Hard to find data on both variables 100 video games used

6 One-Variable Statistics (Development Cost) Total of 5 outliers in development cost All video games with very high development costs Outstanding outliers are Destiny at $500 million and Grand Theft Auto V at $265 million These include: Destiny, Grand Theft Auto V, Call of Duty: Modern Warfare 2, Star Wars: The Old Republic, and Final Fantasy VII

7 One-Variable Statistics (Units Sold) Total of 27 outliers in development cost Initially only 10 outliers Not all video games had very high development costs The removal of outliers changed the statistics and created more outliers Outstanding outliers are Grand Theft Auto V at 29585853 units sold and Call of Duty: Modern Warfare 2 at 16080417 units sold

8 Two-Variable Statistics (before outliers)

9 Outliers A total of 2 outliers were removed Destiny was and Grand Theft Auto V were huge outliers y=0.0366x+420000 Destiny 0.0366(500000000) +420000=18720000 units Grand Theft Auto V 29585853=0.0366x+420000, x=$796881229.5

10 Two-Variable Statistics (after outliers)

11 Console Sales 2013

12 Video Game Sales for Each Console (2013)

13 Bias Website used recorded video games with extremely low sales as 0

14 Extraneous Variables Country first released in Sales of a sequel Console(s) released for

15 Conclusion Increase in development cost has positive effect on sales of the video game Moderately strong correlation Cause and effect relationship

16 Next Steps More data More accurate data

17 Citations (n.d.). In VGChartz. Retrieved January 7, 2015, from http://www.vgchartz.com/http://www.vgchartz.com/ How Much Does It Cost To Make A Big Video Game (2014, January 15). In Kotaku. Retrieved January 7, 2015, from http://kotaku.com/how-much- does-it-cost-to-make-a-big-video-game-1501413649http://kotaku.com/how-much- does-it-cost-to-make-a-big-video-game-1501413649 Reynolds, M. (2012, July 13). 'Borderlands 2' budget 'effectively triple, quadruple the original'. In Digital Spy. Retrieved January 7, 2015, from http://www.digitalspy.ca/gaming/news/a393182/borderlands-2-budget-effectively-triple-quadruple-the-original.html#~p0JUjvGx8Zrxzg http://www.digitalspy.ca/gaming/news/a393182/borderlands-2-budget-effectively-triple-quadruple-the-original.html#~p0JUjvGx8Zrxzg Warner, J. (2013, June 12). Revealed!! Why Video Games are So Expensive. In THE CHECKOUT. Retrieved January 7, 2015, from http://bensbargains.com/thecheckout/bens-bytes/revealed-why-video-games-are-so-expensive/ http://bensbargains.com/thecheckout/bens-bytes/revealed-why-video-games-are-so-expensive/ Carless, S. (2009, March 23). GDC: 2D Boy's Carmel On The Goo Route To Indie Success. In Gamasutra. Retrieved from http://www.gamasutra.com/php-bin/news_index.php?story=22866 http://www.gamasutra.com/php-bin/news_index.php?story=22866 Jenkins, D. (2008, April 2). In Gamasutra. Retrieved from http://www.gamasutra.com/php-bin/news_index.php?story=18096http://www.gamasutra.com/php-bin/news_index.php?story=18096 Hao, E. (2010, May 22). Tera: Online Gaming World's Most Expensive. In SooperArticles. Retrieved from http://www.sooperarticles.com/art- entertainment-articles/tera-online-gaming-worlds-most-expensive-76974.htmlhttp://www.sooperarticles.com/art- entertainment-articles/tera-online-gaming-worlds-most-expensive-76974.html Alder, D. (2000, July). NTV Tokyo Interviews Hironobu Sakaguchi. In Square Haven. Retrieved from http://squarehaven.com/news/2000/07/29/NTV- Tokyo-Interviews-Hironobu-Sakaguchi/http://squarehaven.com/news/2000/07/29/NTV- Tokyo-Interviews-Hironobu-Sakaguchi/ Sun, L. (2014, May 27). Will Sales of Ubisoft's 'Watch Dogs' Match 'Assassin’s Creed'?. In The Motley Fool. Retrieved from http://www.fool.com/investing/general/2014/05/27/will-sales-of-ubisofts-watch-dogs-match-assassins.aspx http://www.fool.com/investing/general/2014/05/27/will-sales-of-ubisofts-watch-dogs-match-assassins.aspx Pitcher, J. (2014, May 6). Report: Destiny costs Activision $500 million to develop and promote. In Polygon. Retrieved from http://www.polygon.com/2014/5/6/5686268/Destiny-costs-activision-500-million-to-develop-promote http://www.polygon.com/2014/5/6/5686268/Destiny-costs-activision-500-million-to-develop-promote Villapaz, L. (2013, September 8). 'GTA 5' Costs $265 Million To Develop And Market, Making It The Most Expensive Video Game Ever Produced: Report. In INTERNATIONAL BUSINESS TIMES. Retrieved from http://www.ibtimes.com/gta-5-costs-265-million-develop-market-making-it-most- expensive-video-game-ever-produced-reporthttp://www.ibtimes.com/gta-5-costs-265-million-develop-market-making-it-most- expensive-video-game-ever-produced-report 5 Most Expensive Video Games. (n.d.). In BIDNESS ETC. Retrieved from http://www.bidnessetc.com/business/5-most-expensive-video-games- business-entertainment/http://www.bidnessetc.com/business/5-most-expensive-video-games- business-entertainment/ Box office/business for Deadpool. (n.d.). In IMDb. Retrieved from http://www.imdb.com/title/tt2269724/business?ref_=tt_dt_bushttp://www.imdb.com/title/tt2269724/business?ref_=tt_dt_bus Romano, S. (2010, February 25). Grand Theft Auto IV the most expensive game ever Read more at http://gematsu.com/2010/02/grand-theft-auto-iv- the-most-expensive-game-ever#waPMVITwpA8kkg2e.99. InGEMATSU. Retrieved from http://gematsu.com/2010/02/grand-theft-auto-iv-the-most- expensive-game-everhttp://gematsu.com/2010/02/grand-theft-auto-iv-the-most- expensive-game-ever Geoghegan, K. (2011, May 27). Will L.A. Noire change the game for actors?. In BBC NEWS. Retrieved from http://www.bbc.co.uk/news/entertainment-arts-13507355 http://www.bbc.co.uk/news/entertainment-arts-13507355 MMO Budget Busters. (n.d.). In MMOhuts. Retrieved from http://mmohuts.com/editorials/mmo-budget-bustershttp://mmohuts.com/editorials/mmo-budget-busters Skyrim : The Elder Scrolls V Statistics. (2013, December 19). In STATISTIC BRAIN. Retrieved from http://www.statisticbrain.com/skyrim-the-elder- scrolls-v-statistics/http://www.statisticbrain.com/skyrim-the-elder- scrolls-v-statistics/

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