Earlier, we wrote about Chris Deering's remarks on the future of console race being a tie between Sony and Nintendo. Well, we have more from Chris Deering; according to him, the current sources of revenue for games will not be sufficient to develop games as the videogames industry develops.
Speaking at the Edinburgh Interactive Festival, Deering posits an intriguing figure: that only three in ten games recover their development costs. He notes that these problems will continue as additional players, such as the cable, satellite, and DSL operators and TV networks, enter the market.
As for a solution, Deering says that "creative use of hybrid online/offline advertising revenue models" could be used to reduce losses. He added, "Gambling will become a source of development funding. Perhaps not directly, but this area can provide some sources of income which [will] eventually be directed back to the developer.
With games like Fury shutting down and certain titles in development losing their publishers, Deering's remarks certainly bear some weight. That said, an additional revenue stream for games development doesn't seem so bad, so long as it helps bring out good games.
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