Game Development Community

Vivendi Universal Games Losses Deepen

by Robert Brim · in General Discussion · 09/15/2004 (8:05 pm) · 13 replies

The company's games division reported an operating loss of 156 million ($190m), compared to a loss of 52 million ($63m) in the first half of 2003. This made Vivendi Universal Games the group's only loss-making division for the second year running, a disappointing result, despite one or two catalog bright spots such as Starbreeze's The Chronicles Of Riddick: Escape From Butcher Bay.


http://www.gamasutra.com/php-bin/news_index.php?story=4292

#1
09/15/2004 (9:05 pm)
Thats too bad...
#2
09/16/2004 (4:16 pm)
Wondered how much HL2 cost to bankroll ;o)
#3
09/16/2004 (4:36 pm)
Gabe Newell said in one interview that it cost 40 million dollars and counting. Of course he is one of the microsoft millionaires, as is one of the other Valve ppl, so i don't know if that's out of their own pockets.
#4
09/16/2004 (5:35 pm)
Ahhhh their from MS . . . So that explains all the hacks, security risks, and problems with HL and CS:CZ CS:Source =\ OH! and why theres no mac support, and they use DirectX
#5
09/16/2004 (6:10 pm)
@Chris:

Dude, simmer down on MS. There are a lot of sites dedicated to bashing them. No need to make this one of them. I'm not a big lover myself, but GG just isn't the place.

The Valve guys are awesome and friends of mine. Your comment is naive and shows a high level of inexperience on your part. It would be best for you to just back off before you make a complete ass of yourself.

-Jeff Tunnell GG
#6
09/16/2004 (10:53 pm)
Thanks Jeff!
#7
09/16/2004 (11:50 pm)
You were told by Jeff himself :)
#8
09/17/2004 (3:33 am)
Little history footnote : the half life port to Mac (pre-OSX) was done when it was cancelled, and MS wasn't involved in its cancellation.
It's also true that Apple's survival was in part thanks to MS becoming a major investor in '97 (150 Millions US was the figure mentioned publically), with a 5 year commitment of bringing Office products to the Mac during that timeline.
Also, whatever you might think of MS the corp has no bearing on the very talented people working there : I was at a C++ workshop presented by the Xbox Advanced Technology Group, and boy, these people are NOT hacks :)
#9
09/17/2004 (2:10 pm)
He was a MS Made man, that just means he was a pioneer... He isnt gates... and he obviously isnt at MS now... So more power to him, Im still dissapointed in the huge delays, and the fact that they had Ubisoft raided because of farcry... and 40 million dollars.. Jesus cripes... of course i cant remember what carmack and crew spend on doom3, but was it really worth it? the more they push the envelope, the more our games here look outdated.. So... it is quite a delema.. HAHA,

Then again, i recently got to toy with the unreal engine at the 2015 offices... and i must say, i am not ready for an engine on that level of complexity... so i think im going to keep torquing it :p
#10
09/17/2004 (6:41 pm)
Ya, this is kind of dissapointing. But with WOW, HL2, Tribes:Vengeance and some other high profile games coming out soon; I think they might start making a profit. They completely restructured recently; abolishing several of its childeren studios (ie Sierra), and relocating them to centralized locations (ie Los Angeles). I don't want them to go bankrupt, because that would be really bad for the gaming community. I don't like the idea of Microsoft picking up Blizzard/Valve. :(
#11
09/18/2004 (12:15 pm)
Josh, that is a big assumption. Take a look at how many copies they have to sell just to break even because of the money they already spent on making the product.

I think they will have to sell hundreds of thousands or millions to break even.
#12
09/18/2004 (12:33 pm)
Quote:I don't want them to go bankrupt, because that would be really bad for the gaming community. I don't like the idea of Microsoft picking up Blizzard/Valve

Wha? So, you would rather have a company that is closing all it's studios.. losing more money yearly than most countries GNP, and doing such a great job of managing Blizzard that the founders left, remain in control of these franchsies rather than have them be picked up by a company with 80 Billion in the bank?

Not sure why.. I am not a super huge fan a microsoft.. but I am REALLY not a fan of Vivendi. I fail to see how the latest 'restructuring' is any different from the 2 we had to live through.
#13
09/18/2004 (12:38 pm)
I wouldn't sweat 40 mil development costs. As it stands Valve look set to make in excess of about 100 mil on sales. This is calculated on sales of around 5+ million units world wide. You need to minus advance fees, marketting costs, duplication and packaging costs ( most companies want to eliminate these costs hence steam).

Even after all these costs Valve are still looking to turn a nice profit on HL2.....unless it turns out to be cack and sales dies out after the first few weeks!

Wish I could look forward to such sales! :o|