Stardock: Elemental Will Lose Money

January 10, 2011 -

Stardock CEO Brad Wardell says that the company's strategy RPG Elemental: War of Magic will end up costing the company money in the long run. This will happen, the company says, despite the fact that the game managed to break even on pre-orders.

"Elemental made its money back on day one and has continued to be profitable to this point," Wardell told Gamasutra in an email. "However, based on our projections we anticipate by the end of second quarter 2011 that Elemental will end up losing money overall as our objective is to spend what is necessary to ensure that the game meets the expectations of our customers."

Wardell did not disclose how many units the game has sold to date or how much money the company made off initial sales. While the company will lose money on the game, Wardell sees it as an investment in its PC customer base, who were very dissatisfied with the launch of Elemental.

One of the reasons that Elemental will lose money is several high profile hires to help drive the future development of the game in the right direction. Earlier this month Stardock hired former Civilization V lead designer Jon Shafer to take the reins of the game's development. Shafer will oversee the development of two expansions for the game. After that, he will begin designing his own game for Stardock.

Source: Gamasutra


Comments

Re: Stardock: Elemental Will Lose Money

The only reason there was more risk in it was because they did not finish the product before releasing it... becuse they failed to finish and polish itbefor launch they have damaged thier repuation and thus thier bottom line.


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Re: Stardock: Elemental Will Lose Money

I disagre.  I think the whole project was risky long before the release issues.  When you only have the resources to produce one game at a time, starting a new series is always more risky then continueing one that already has a solid following, esp when the new one eats up suffient time that momentum from the last installment dies off.

Re: Stardock: Elemental Will Lose Money

Elemental was risky for them in general.. while there were people excited about it, it probably would have been better to invest further in their GalCiv series since that is what they are generally known for.

Instead they poured exclusive resources and years into this new product.... they should have at least done parallel development or something. Granted they ARE finally pouring some resources into making a new patch for GalCiv2.. but it might be too little too late.

 
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Sora-ChanI realize that they have ways getting around it, but one reason might be due to earthquakes.04/17/2014 - 4:42am
Matthew WilsonSF is a tech/ economic/ trade center it should be mostly tail building. this whole problem is because of the lack of tail buildings. How would having tail apartment buildings destroy SF? having tail buildings has not runed other cities around the US/world04/16/2014 - 10:51pm
Matthew WilsonAgain the issue is you can not build upwards anywhere in SF at the moment, and no you would not. You would bring prices to where they should have been before the market distortion. those prices are not economic or socially healthy.04/16/2014 - 10:46pm
ZippyDSMleeYou still wind up pushing people out of the non high rise aeras but tis least damage you can do all things considered.04/16/2014 - 10:26pm
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Matthew WilsonSF have to build upwards they have natural growth limits. they can not grow outwards. ps growing outwards is terable just look at Orlando or Austin for that.04/16/2014 - 4:15pm
ZippyDSMleeIf they built upward then it would becoem like every other place making it worthless, if they don't build upward they will price people out making it worthless, what they need to do is a mix of things not just one exstreme or another.04/16/2014 - 4:00pm
Matthew Wilsonyou know the problem in SF was not the free market going wrong right? it was government distortion. by not allowing tall buildings to be build they limited supply. that is not free market.04/16/2014 - 3:48pm
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Matthew Wilsonthe issue is when is doesn't work it can screw over millions in new york city's case. more often than not it is better to let the free market run its course without market distortion.04/16/2014 - 9:36am
NeenekoTrue, and overdone stagnation is a problem. It is a tricky balance. It does not help that when it does work, no one notices. Most people here have benifited from rent controls and not even realized it.04/16/2014 - 9:23am
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ZippyDSMleeEither way you get stagnation as people can not afford the prices they set.04/16/2014 - 8:47am
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