Price per MB is a questionable metric that I think the author made insufficient effort to justify. The PS3, for instance, sent game sizes skyrocketing in an effort to try to demonstrate the perks of blu-ray. A number of games included all audio localizations on each disc in lossless formats. That likely saved studios money since localized distribution could all come from the same production line, but it sent the $/megabyte way down which this author implies means studios are earning less. It's a nonsensical datum without some justification and that justification was not provided in this article.
I also think that that datum leads to questionable conclusions. For instance you're paying vastly more for AAA games today than you were in the past. The author is right that the upfront cost is certainly much lower, but we've changed from a model where you're paying for a fully fleshed out game to one where you pay for a stripped down product that is intended to be sold piecemeal. In many cases users are paying to unlock content that is literally already on the disc they purchased. That first $60 you pay is simply your "starter pack." And there are additional 'meta costs' as well. Instead of simply putting the game in and running it you're instead obligated to pay an annual fee to use your own internet connection and then exposed to various advertisements on your way to launching the game and games themselves increasingly even feature more advertisements on their launch screens. These advertisements, in effect, increase the cost to the player if we assume they are effective.
Why not use profit margins? Total revenue / (total development + total marketing)? In either case, it doesn't really matter. Games are like music in that they are self sustaining since people will continue develop them even absent a profit motive. This is even more true today thanks to platforms like Steam removing the necessity of publishers from the entire industry. Seeing the end of 'fee-to-pay' or AAA games would bother me no more than seeing the end of Justin Biebers.
I also think that that datum leads to questionable conclusions. For instance you're paying vastly more for AAA games today than you were in the past. The author is right that the upfront cost is certainly much lower, but we've changed from a model where you're paying for a fully fleshed out game to one where you pay for a stripped down product that is intended to be sold piecemeal. In many cases users are paying to unlock content that is literally already on the disc they purchased. That first $60 you pay is simply your "starter pack." And there are additional 'meta costs' as well. Instead of simply putting the game in and running it you're instead obligated to pay an annual fee to use your own internet connection and then exposed to various advertisements on your way to launching the game and games themselves increasingly even feature more advertisements on their launch screens. These advertisements, in effect, increase the cost to the player if we assume they are effective.
Why not use profit margins? Total revenue / (total development + total marketing)? In either case, it doesn't really matter. Games are like music in that they are self sustaining since people will continue develop them even absent a profit motive. This is even more true today thanks to platforms like Steam removing the necessity of publishers from the entire industry. Seeing the end of 'fee-to-pay' or AAA games would bother me no more than seeing the end of Justin Biebers.