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At the same time there was a revolution in the home video game console market. Sega and Nintendo, which for years had charged gamemakers royalties as high as $15 to $20 for each 16-bit title sold, were being challenged by 32-bit newcomers 3DO and Sony.
Not only were the new consoles CD-based, which made manufacturing and inventory control significantly cheaper than the bulky cartridge-based 16-bit systems, but the companies were also charging royalties as low as $3 a title to the software houses.
From feast to famine -- and now back to feast. The Sony PlayStation has done what Atari, CD-i and 3DO failed to do -- become a credible powerhouse, and Electronic Arts has benefited. Electronic Arts now commands 27% of the popular PlayStation's software sales, second only to Sony itself.
This year, beyond the PC and PlayStation, look for the company to make a serious push towards the Nintendo 64. Last year, sales to the popular N64 amounted to just 1% of total company revenues. With high royalties and, once again, those pesky cartridges, it was easy to see why Electronic Arts was cautious at first.
But now that Nintendo has lowered its fees and the system has proven to be a runaway success, Electronic Arts will release at least eight N64 games this year. The company says the move should boost N64 sales to about 10% of Electronic Arts' totals this year.
fool.com
Link good for today.
cl
>>>5. Sell through their approved marketing & distribution system. Into a market 10% the size of the potential PC market.
6. Try to collect your money, if any is left.<<<< |