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Saturday, February 3, 2007

20 million on advertising?


On a Thursday night this January 1, 400 breathless fans lined up around the block on San Francisco's Brannan Street. Photographers stalked, bloggers and journalists prowled, and smoke machines hummed. The event's stars were featured on 17-foot screens hung above the throngs. This was no movie premiere, however. It was the launch of Capcom's newest game, Lost Planet, for Microsoft (nasdaq: MSFT - news - people )'s Xbox 360. And it's why the venerable Japanese gamemaker hired Mark Beaumont--to invigorate its business in North America and Europe, where Capcom had been living on the fading cachet of its past triumphs (Mega Man, Street Fighter) and marketing its games with Atari-era methods.

Beaumont's marketing prowess has already pushed Lost Planet to near-blockbuster status: Capcom shipped 1 million copies before the game went on sale Jan. 12. A game that sells 3 million units globally is generally considered a smash hit. Capcom has spent $20 million developing the game and will spend another $20 million promoting it. In the past that ratio tilted heavily toward development. Lost Planet anchors Capcom's quest to capture share in North America and Europe, which account for 80% of the world's $16.3 billion game market.

Article from Forbes.com

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