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Locked: Zack & Wiki didn't make money?!?
3 years ago  ::  Jan 28, 2009 - 1:05AM #1
BengaBenga
Posts: 27

In the interview Marketing Manager Colin Ferris did with Gamedaily he says that Zack & Wiki didn't make money.


Quote:  The games business is filled with titles that people love that simply did not make money: Viewtiful Joe. Okami. Zack and Wiki.



Can someone else confirm that, cause I have a hard time believing that. In the earningsrelease in January 2008 Capcom stated that through December 2007 Zack & Wiki sold 300,000 copies. This is before the European release. Let's say that 200,000 copies are sold in 2008 (seems realistic with the European release and some additional American and Korean sales).

Then we're at 500,000 units. I think around $20,- per sold copy goes to the publisher so total revenue for the game should be around 10million. I might be wrong here, but I hope Capcom didn't make a point & click adventure (an amazing one, but still an unpopular genre) for that amount of money.  


 


Obviously I don't have the exact numbers for income and sales, but as a rough estimate I think I'm quite close.

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3 years ago  ::  Jan 28, 2009 - 2:08AM #2
Sven
Posts: 8,847

I won't get into details (because I can't... that's for investor relations only) but your assumptions are a ways off.


Christian Svensson
Corporate Officer/Senior Vice-President

Now Playing:  SW: The Old Republic (PC), Kid Icarus (3DS), Spiral Knights (PC), Dota2 (PC), League of Legends (PC), Rayman (Vita)

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3 years ago  ::  Jan 28, 2009 - 3:06AM #3
BengaBenga
Posts: 27

Jan 28, 2009 -- 2:08AM, Sven wrote:


I won't get into details (because I can't... that's for investor relations only) but your assumptions are a ways off.




Ways off? Hmm.

I understand you can't go into detail and don't expect that, I'm only asking whether Zack & Wiki indeed lost money (that might already be too much detail, though) as claimed in the interview. Especially since it was named a "highlight" in the Q3 2007 earnings press release.


As a minimum case we have 300,000 units sold reported by Capcom. Again I might have the figures wrong but shouldn't a title like Zack & Wiki at least break even at that amount of sales? (THQ seems very happy with US sales of 230,000 for de Blob).

The revenue per copy for the publisher is an estimate based on Forbes' claim that ~$28 per sold game (at $60 retail price) goes to the publisher. Obviousy I can't say whether this is the case for Capcom or whether Forbes is even right, but I would be surprised if it's lower than $20.


So that leaves me to think that the main figure I have wrong is the development + publishing cost, which I understand is confidential.

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3 years ago  ::  Jan 28, 2009 - 8:57AM #4
Chris
Posts: 3

No offense, but Capcom has a terrible business strategy if Zack & Wiki and Okami really didn't make a profit.

In february 2008, Capcom stated Zack & Wiki sold well. So selling well means still losing money? Ouch for Capcom's business strategy.

Zack & Wiki has now sold over 500.000 units. 95% of the similar games that reached that number, made a healthy profit (De Blob, No More Heroes, Boom Blox), as it's been stated numerous times by publishers and analysts.

500k for a low budget niche game should rake in a good profit. Or did Capcom spent over 10 million dollars making Zack & Wiki (how would Capcom otherwise lose money on the game?). You can probably make 2 times No More Heroes and 2 times De Blob combined with that amount of money.

The unability of Capcom to make any money with Zack & Wiki selling over 500k units within a year is baffling.

Also, Okami was selling "along expectations", and it's on track to outsell the PS2 version. The Wii version is obviously a port, and it couldn't have cost much money at all. Still, it failed to make Capcom any money.

Conclusion: Capcom has a terrible business strategy and is unable to make any money even though all other publishers are able to with similar products and similar sales. Is Capcom extremely inefficient with development costs, or is something else happening?

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3 years ago  ::  Jan 28, 2009 - 9:03AM #5
bullet_math
Posts: 674

It sold 500k with zero advertising on a platform that is popular among casuals and has a ridiculous amount of cutesy games


Capcom are lucky that it sold half a million. Coupled with their cheap ports and rehashes they've sold about 3 million units of software for the wii with minimum effort

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3 years ago  ::  Jan 28, 2009 - 9:43AM #6
Sven
Posts: 8,847

It did not sell 500K units or anywhere near it. I still don't understand where you're getting 500K.


To the best of my knowledge, the 300K figure quoted by IR included European orders from Nintendo who published the title on our behalf in that territory. Nor did it do the volume it did do at anywhere near frontline pricing (in the US anyway).


And what you think was a cheap game to make, wasn't. Great games almost never are.


Lastly, Okami Wii is not on track to outsell the PS2 version. The worldwide Okami Wii number might get to the US Okami PS2 number at some point though. Seriously guys, just stop trying to use VGchartz or whatever you read on Neogaf to be armchair analysts. You're working with incorrect information and a fraction of the facts.


Christian Svensson
Corporate Officer/Senior Vice-President

Now Playing:  SW: The Old Republic (PC), Kid Icarus (3DS), Spiral Knights (PC), Dota2 (PC), League of Legends (PC), Rayman (Vita)

You can find me on Google+
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3 years ago  ::  Jan 28, 2009 - 9:49AM #7
Cybergoth
Posts: 281

According to vgchartz it sold:


 


Japan     30K


America 350K


Europe 160K


Which total to 540K worldwide.


 


Can you possibly post correct numbers, Sven?

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3 years ago  ::  Jan 28, 2009 - 9:57AM #8
Sven
Posts: 8,847

No, I can't... but those numbers are way off in at least two territories.


Christian Svensson
Corporate Officer/Senior Vice-President

Now Playing:  SW: The Old Republic (PC), Kid Icarus (3DS), Spiral Knights (PC), Dota2 (PC), League of Legends (PC), Rayman (Vita)

You can find me on Google+
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3 years ago  ::  Jan 28, 2009 - 9:59AM #9
bullet_math
Posts: 674

Jan 28, 2009 -- 9:43AM, Sven wrote:


It did not sell 500K units or anywhere near it. I still don't understand where you're getting 500K.


To the best of my knowledge, the 300K figure quoted by IR included European orders from Nintendo who published the title on our behalf in that territory. Nor did it do the volume it did do at anywhere near frontline pricing (in the US anyway).


And what you think was a cheap game to make, wasn't. Great games almost never are.




I was talking about your constant stream of ports and rehashes being cheap. Lets face it Dead Rising chop til you drop and your 20 resident evil games cant have cost too much to make


Zack and Wiki obviously wasnt cheap being as it's your only good original game on the Wii although it stil probably cost about a third of  your HD games. But it had a stupid title and Zero marketing so you cant really complain especially given that it was released so early in the console's life and there is nothing to distinguish it from NinjaBread Man 2 for the average casual


 

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3 years ago  ::  Jan 28, 2009 - 10:06AM #10
Chris
Posts: 3

Okay, so it didn't sell 500k under Capcom publishing. Still, it sold well according to Capcom PR, so how could it still have lost money? Capcom also stated Okami sold along expectations (so expectations were to lose money?).

And yes, better marketing would have helped. A lot.

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