Gears of War 4 Was Bound To Be Financial Flop For Epic Games, Says Tim Sweeney
We are all super excited about Gears of War 4 because it is one of the most loved Xbox game, however, previous IP owners and creators, Epic Games feared the game would be really hard to make a major profit out of.
In fact, Tim Sweeney, the founder of Epic says that their calculations back in the days told them it could put them out of business if they released Gears 4!
At first he was talking about the profitability of the franchise according to the calculations that Epic Games had made during the first three releases.
The first game was highly profitable but by the time they released Gears of War 3, the profits had shrunk massively.
The very first Gears of War game cost $12 million to develop, and it made about $100 million in revenue. It was very profitable. By the end of the cycle, Gears of War 3 cost about four or five times more than the original to make.
This, in their opinion was so bad that Gears of War 4 would have made a loss if they released it because the development cost would have been much more than $100 million. He says:
The profit was shrinking and shrinking. We calculated that, if we built Gears of War 4, the budget would have been well over $100 million, and if it was a huge success, we could break even. Anything less could put us out of business. That’s what caused us to move and change business models.
Microsoft has the rights to Gears of War 4 now which suggests they are using it more to strengthen Xbox One’s position than to earn profits out of it. However, only the sales figures will tell how good this game will go.