Video games often take so much more effort to produce compared to a movie. Why are there so many titles released every year? Do these obscure games even sell enough to break even?
In: Economics
Most of them yes, and the one that don’t usually lead to the company going bankrupt and stop making video games. Keep in mind that the video games industry is a LOT bigger than Hollywood.
In 2018 the video game industry was 137.9 Billion per year, while movies was 41.5 billion and music was 19.3 billion. The highest grossing film of all time is Avengers : Endgame with 2.79 billion, following by Avatar at 2.78 billion. Grand Theft Auto V is the highest grossing entertainment product with 6 billion in revenue. So yes, video game make a lot of money.
Now for obscure video game, the range of revenue and spending vary a lot. There is a lot of video made only by one guy or a small team that become popular, so in that case they costed less to make than even a small movie. Some other games are just reskin of game already made, so again the cost isn’t that high. So ya the cost to make a video game can be lower or higher than what you need to do a movie and the same it true for the revenue they gonna make. The main goal here is to have a budget lower than what you expect to get in revenue, and companies that are not good at that, end up closing.
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