Unsurprisingly YoYo Games are yet to make a profit
June 7, 2009
At the GMC users with little knowledge of how a business works expect to get it all without paying anything. As Sir Alan Sugar would say these people “haven’t got a bloody clue” of economics and hold delusions that YoYo is some big bad corporate enemy that has snatched Game Maker away from its creator and spend their days rolling around in big piles of Game Maker user’s money.
It may not be common knowledge amongst the teenagers that inevitably dominate the demographics of those uploading to YoYoGames.com but to many of the more financially aware of us it is blatantly obvious that YoYo Games are not laughing all the way to the bank. Indeed Sandy has confirmed that YoYo Games are not making a profit.
As of March this year YoYo Games had invested over $1 million and the site is currently home to over 35,000 user-created games which have been played more than 7.9 million times. The website itself serves upwards of 10TB of data every month to over 500,000 unique visitors.
- Servers: YoYo are not simply serving text and graphics. Almost 12,500 game plays were recorded per day between May 5th and June 6th this year – one every 6.9 seconds.
- Staff: Support tickets don’t answer themselves.
- Development costs: Foundation 9 Entertainment led by YYG director James North-Hearn are currently developing Game Maker 8 under their Sumo Digital subsidiary which, if on schedule, should be released later this year.
- Advertising revenue: The “YouTube for games” idea revolves around on-page advertising. However serving large amounts of data is expensive and YouTube are yet to make a profit.
- Upgrade income: Earlier this year YoYo increased the cost of upgrading from the free to the Pro version of Game Maker 7 from $20 to $25. However a large proportion of users have received the full version of Game Maker 7 for free having previously upgraded their copy of Game Maker 5 or 6 and being granted a free registration code for Game Maker 7.
- Investment: Presumably by directors. Not publicly known.