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?

Question

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

Answer 1

Video games make a LOT of money. First off, the cost of buying a video game versus going to the movies is generally a lot higher in regards to a AAA high-quality title. (But conversely, you get far more hours of entertainment out of it.) Now, it’s true that there are TONS of games that get released, and like movies, not all of them end up selling enough to make up for the money invested in their creation. But enough do that it’s a thriving, growing industry.