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royalty
royalty must be paid at the time of manufacturing, as opposed to royalty payments in almos
t all other industries, where royalties are paid upon actual sales of the product—and, importantly, are not payable for games that did not sell to a consumer. So, if a game publisher orders one million copies of its game, but half of them do not sell, the publisher has already paid the full console manufacturer royalty on one million copies of the game, and has to eat that cost.
Most publishers have suffered a "false launch", in which the development staff assures the company that game development will be completed by a certain date, and a marketing launch is planned around that date, including advertising commitments, and then after all the advertising is paid for, the dev
There is a consensus in the industry that it has increasingly become more "hit driven" over the past decade. Consumers buy the game that's best-marketed and of the highest quality, therefore buying fewer other games in that genre. This has led to much larger game development budgets, as every game publisher tries to ensure that its game is #1 in its category.

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Many of the higher powered personal computers are purchased by gamers who want the fastest equipment to power the latest cutting-edge games. Modern games are among the most demanding of applications on PC resources, so the latest hardware is often targeted at this sector likely to purchase and make use of the latest features.
 
 
 
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