GTIS - Will it be a Phoenix or not ? Message Board

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Technology Stocks : GTIS - Will it be a Phoenix or not ?

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To: Bill Gizzo who wrote (2046)	9/8/1998 12:40:00 PM
From: Scot	Read Replies (2) of 2319

It is true that the ASPs of these games are fairly low. With Unreal, GT appears to have spent a significant amount of money developing, publishing and promoting the game. They may lose money in the long run. But what about the other games? While the selling price per unit is lower, what are the costs? These are all low-budget games with fairly low development costs (and standards). The 'Nam game uses a DOS 3d engine (Doom engine?) and couldn't have cost much to develop. I'm not suggesting I know the answer to the obvious question: what are the profits per unit for some of these budget games? And how does that unit percentage compare to industry standards? But the argument can be made that GT could (or should) be making some decent profits off of high-unit sales of budget titles. I guess I just have a hard time believing that every action GT takes is designed to manipulate its market position. Regarding Unreal....maybe Unreal is not selling as well as they hoped without discounting, but it is a very good game (albeit with steep system requirements), and I think 49.99 is a very high price (for any software title). -Cheers -Scot

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