Even If Sonic Boom game quality is good.

[Tani Coyote]

That's a long-term financial success, however, since it sold a system and put Sonic on the map.

I mean at face value. I imagine you're not making much money when you not only cut the price of your console but then slap a game on for free.

Let us consider this. The Genesis was 200 USD originally and then Sonic 1 was 50 USD. They were selling both for 150, when it would have been 250 had no changes been made. It sold more stuff in the long run, but how profitable was the actual console? I know consoles today tend to sell at a loss per unit, but how much did SEGA gain/lose on a Genesis/MegaDrive? They are technically making zero profit on any copy of Sonic 1 sold with the console.

In fact I recall that was a huge reason SEGA Japan was pretty angry at the idea at first, since that basically erased any profit they'd have made for the short term. It paid off in the long run since it made people buy the console and thus new games that would be coming out with it.

Which is what I'm getting at - even if Boom runs a loss, it could very well be a long-term victory since it gets the brand out there and encourages people to buy the sequel, not to mention associated merch.

As the saying goes, you have to spend (that is, lose) money to make money.

[Jovahexeon Jax Joranvexeon]

Ogilvie does raise a good point. If SEGA could have saved the Genesis with Sonic 1, perhaps they can also work similar wonders with Boom on the Wii U.

[Tani Coyote]

I wouldn't go so far as to say save the Wii U (though that's always a possibility if Sonic really does appeal to kids that much in the wake of the cartoon), but I think if the game is well reviewed it can recoup most of its financial losses through game sales and then make up the rest with sequels and merch.

[Jovahexeon Jax Joranvexeon]

Well I'm not saying it'll save the Wii U, but more so, that it has the ever-more possibility to sell a good boon of games and definetely profit even on the Wii U despite what naysayers think.

[Badnik Mechanic]

Ogilvie does raise a good point. If SEGA could have saved the Genesis with Sonic 1, perhaps they can also work similar wonders with Boom on the Wii U.

 

So Sega spends $20 million to save a system that they don't own and doesn't a doesn't make any money from it.

 

Now that sounds like a great idea!

[Tani Coyote]

The main problem with that is the console exclusivity. Transformed sold one million copies, and that was considered pretty impressive, but it was also multi-platform. There's a real question of if enough Wii U users will buy the game. Hopefully so, but at the same time, it does cast some doubt on things.

Assuming they make 20 dollars profit per copy, they're going to need to sell a million copies of this in the early weeks of release, which could be quite difficult.

However, Nintendo prides itself on being the family-oriented console. If SEGA's age targeting works well, that cartoon might actually inspire kids to buy the game.

I really hope SEGA buys adspace for the game during the cartoon's episodes, if nothing else. It'd be stupid not to.

[Jovahexeon Jax Joranvexeon]

So Sega spends $20 million to save a system that they don't own and doesn't a doesn't make any money from it.

 

Now that sounds like a great idea!

You seem to have horribly misinterpreted me.

 

*Sigh* Quite a shame too.

[Nepenthe]

Different times, different standards. I don't feel there is much that can be directly gleaned from extrapolating Sonic's success at a time when platformers were actually relevant. We should do well to remember that Sonic is a prime example of lightning in a bottle. He is here still because he happened at the right time in history. His glory days are not repeatable and thus can't be used for much of a point in a conversation concerning modern gaming economics.

[Badnik Mechanic]

You seem to have misinterpreted me greatly.

 

*Sigh* Quite a shame too.

 

If you're going to edit your post to include that little emotive thing, you might want to edit your original comment to reflect your point.

 

You said...

 

 

 

If SEGA could have saved the Genesis with Sonic 1, perhaps they can also work similar wonders with Boom on the Wii U.

 

Now... Sega needs to sell 1 million copies of Boom just to break even. If they do what they did with the Genesis they have to either bundle it with the Wii U or wait long term, and by long term we're talking a period of months by which point they will need to sell into the high first single million units to break even since the initial launch is well and truly over.

 

How on earth does bundling Sonic Boom with the Wii U, or slashing it's price in order to sell more Wii U's benefit Sega in any way? 

 

It doesn't. It only benefits Nintendo. 

 

Every other game Sega has announced for the future aside from Boom is not a Wii U exclusive, it's either multi-format or another system exclusive. So how does doing to the Wii U help Sega when that boat has long since sailed?

 

It doesn't help them at all since neither Boom or Lost world would see any benefit from a Wii U revival post Boom's release. The only way Boom will benefit from a Wii U revival is if something else happens between now and November.

[omote23]

No it's not. It's around 1 million units sold. Its nowhere near 1.5 million.

oh really?..

So.. Package game Cost of sales rate is around 60%?

 

 

Which is never going to happen regardless as to how much faith you have. Just look at the facts, or even Lost World, had a lot of hype going into it, reviews didn't come out until day 1... only ships 600k, which isn't the number sold. So Sega would need to ship more than 1 million units and hope that over 90% of those shipped units are sold.

Not going to happen

So.. this means, This game is not profitable. and this game won't over break even.

If this game will flopped, I think Sega Sammy Group stockholders will abolish Sonic franchise. because Sonic Boom is lost too much money. .

[Tani Coyote]

Umm. I don't think Sonic's really lost money. Been crapped on by game reviewers, yes, but if he was unprofitable he'd have been canned a long time ago. Or sold off to another company, more likely.

Which, given what's happened to pretty much every platforming character sold off to another company... thank God he wasn't.

[Jovahexeon Jax Joranvexeon]

If you're going to edit your post to include that little emotive thing, you might want to edit your original comment to reflect your point.

 

You said...

 

 

 

 

Now... Sega needs to sell 1 million copies of Boom just to break even. If they do what they did with the Genesis they have to either bundle it with the Wii U or wait long term, and by long term we're talking a period of months by which point they will need to sell into the high first single million units to break even since the initial launch is well and truly over.

 

How on earth does bundling Sonic Boom with the Wii U, or slashing it's price in order to sell more Wii U's benefit Sega in any way? 

 

It doesn't. It only benefits Nintendo. 

 

Every other game Sega has announced for the future aside from Boom is not a Wii U exclusive, it's either multi-format or another system exclusive. So how does doing to the Wii U help Sega when that boat has long since sailed?

 

It doesn't help them at all since neither Boom or Lost world would see any benefit from a Wii U revival post Boom's release. The only way Boom will benefit from a Wii U revival is if something else happens between now and November.

Ah, so that's what you meant.  To be fair, I wasn't speaking for the idea that SEGA would use the exact same methods, just that Boom has the capacity to profit. That said, I apologize if my original statement was a tad vague.

[Badnik Mechanic]

 I think Sega Sammy Group stockholders will abolish Sonic franchise. because Sonic Boom is lost too much money. .

 

I think you're completely wrong, also that's not how stockholders work. 

 

Sonic makes money, and it makes a lot of it, it's not just tied to the games.

 

Umm. I don't think Sonic's really lost money.

 

Put it like this. 

 

If Sonic as a brand was loosing money and investors considered it a poisoned brand.

 

This wouldn't have happened.

 

This wouldn't have happened.

 

This wouldn't have happened.

 

And this wouldn't have happened.

[Jovahexeon Jax Joranvexeon]

DOn't bother with Omote, he does this endlessly back at SEGA Forums. Something about wanting Nintendo to buy Sonic.

[omote23]

I think you're completely wrong, also that's not how stockholders work. 

Wait.... oh sorry,.  

abolish Sonic franchise (X) >> If Sonic Boom and other Package game were flopped they would abolish or sell Sega's Package game business (O)

 

 

Sonic makes money, and it makes a lot of it, it's not just tied to the games.

 

How..?

I can't find how Sonic franchise is make money in Sega Sammy's financial report.

 

Edit.  : So.. now. is this grammar correct?

[Tani Coyote]

Yeah, Sonic's a profitable IP, pure and simple. Otherwise SEGA would have canned him ages ago and kept his cheeky face purely for mascot purposes.

Heck, they probably would have kept him by himself and sold everyone else off.

Sonic's 23 years have seen a high concentration of lackluster material, pure and simple, but the fact of the matter is he means so much to so many people that he's still a moneymaker.

Let's be honest here. How many times have we heard "I'm quitting the fandom because of X?"

[Nepenthe]

DOn't bother with Omote, he does this endlessly back at SEGA Forums. Something about wanting Nintendo to buy Sonic.

 

Don't drag people's Sega Forum histories into conversations. This shit gets old and frankly we don't care what they do over there until it becomes a serious problem here.

Wait.... oh sorry,.  

abolish Sonic franchise (X) >> If Sonic Boom and other Package game were flopped abolish or sell Sega's Package game business (O

 

How?

I can't find How Sonic franchise is make money except the games and CR Sonic pachinko (2003) in Sega Sammy's financial report.

Also, fix your grammar. You need to use proper punctuation and capitalization to be as legible as possible. It's in the rules.

[Tails spin]

I dont know if this has been mentioned but I think we are missing a big piece of the puzzle. Sonic Boom started it life as a multiplatform game before it was included in the Nintendo partnership. So this big budget could have been for PS4 and Xbox one development as well.

Edit: forgot to mention that maybe even xbox360 and PS3

[Tani Coyote]

That actually makes me ponder another question.

If this game is meant to really make waves, why keep it to just the Wii U?

Why didn't they just shoehorn some smaller title in to serve as the third exclusive instead?

[Mando-Whirl-Wind]

That actually makes me ponder another question.

If this game is meant to really make waves, why keep it to just the Wii U?

Why didn't they just shoehorn some smaller title in to serve as the third exclusive instead?

Actualy, there are several pretty obvious reasons:

1. BRB is still an unknown and untested quanity, if they screw up its better that the fallout is limited to 1 system
2. Target audience: Nintendo despite its current issues with the wii-u still has a huge appeal to the family and younger demographic, and for better or worse that image is unlikely to change
3. The amount of sales needed for profit will be much smaller since Nintendo is footing a Decent chunk of the bill for the exclusivity
4. One system means less of the budget goes into optimizations and trouble shooting for multiple platforms instead of the game
5. Where would this shoein title come from? all of Segas studios are tied up at the moment, and taking the risk of their tv series tie-in gamins selling less may be worth the benefits;

Could go on a bit further, but I think that makes my point, and again remember at least part of the 20 milion bill has been covered by nintendo due to the exclusivity, if I had to guess somewhere in the 25% range wouldnt surprise me, so they arent making as big a loss as it would have been if they had gone multiplat, had an inferior product, and tanked. It also provides a safe proving ground for BRB as a team