Kerr Avon, on 19 October 2019 - 10:22 AM, said:
In all honesty, did DNF make a profit? Even allowing for the desperate hope many of us held for the game before it came out, and even allowing for the far-too-few-blind-fanboys-who'd-have-bought-the-game-whatever-it-was-like, surely a game as badly reviewed as that, that was so roundly slagged off by the very people who most wanted it to be good, wouldn't have sold nearly enough to even begin to break even, let alone make a profit.
I'm a big fan of DN3D (I've bought it three times over the past 20+ years) but I never bought DNF when it came out, because of the reviews and much more because of what fellow DN fans were saying, as *everyone* slagged it off. I only remember one friend buying it, and when I went to his house I don't know how long I tried it for, before I lost interest. I did buy the game used, later, tried it a again, hated it and gave the game away. And then months back, following some discussion on the 'net (which might well have been on this forum, or maybe 3D Realms' forum) I bought it (used) with the intention of playing it through to the end, to see if it did get any better (it really really doesn't, even the end boss battle is utterly lacking in imagination as you'll know if you've played DNF to the end).
So is that article correct in saying that DNF actually made a profit? How? It's a game that no one liked, that seemingly almost no one bought, that almost no one ever talks about (and if they do, it's either about disappointment or bafflement that it could have been so bad), that must have cost a fortune to make given it's development time (though playing (ugh!) through the game you have to wonder where any of the development time went), that it seems pretty inevitable that it would have lost a lot of money, not made a profit.
I guess one relevant question is: Made a profit for whom?
3D Realms funded somewhere in the neighborhood of 95 - 99% of development upto Triptych taken over development duties. I believe Triptych received little to no funding prior to Gearbox taken over, and what little they did receive they received from 3D Realms. Then there is a matter of Gearbox's acquisition cost of the IP + the money they used to complete the game. The former is money for the acquisition of the entire IP and can not fairly be labeled as DNF development costs. We don't know how that deal was structured either, but I believe there was some indication of some of it being an advance against future royalties. On the other hand the money they used to complete the game definitely counts as DNF development costs. But there is a huge difference between funding the last year or two of development versus funding the whole thing. So it is quite conceivable that the game was profitable for Gearbox.
Then there is Take Two/2K. First I would say that their assesment, in principle, is less relevant since if GBX perceives it as profitable they can pursue a new Duke game through other avenues(like Gearbox Publishing or other publishing partners). But their situation is roughly this: They acquired the DNF publishing rights from Infogrames/Atari for $ 6 million upon signing + $ 6 million upon release of the game. Later they renegotiated the agreement. I think under the new agreement they had to pay $ 10 million in all. IIRC this agreement included some other publishing rights, including for a game based on the Duke movie that was supposed to be made and for an eventual Duke 5. But in 2007 3D Realms and Take Two entered into an agreement giving 3DR back the publishing rights to Duke 5 and the movie game in exchange for rights to publish the Duke Begins game that Gearbox was going to make. The deal also included a $2.5 million advance against royalties from both DNF and Duke Begins. That advance was to be paid back as a loan if DNF was not released by a certain date (IIRC December 31, 2012). It seems Gearbox might have paid them this advance back as part of the settlement that was entered into. I think some of Take Two's financials mention receiving a DNF related payment of $ 2.5 million.I don't think Take Two paid Gearbox any money for completing the game. So I guess for Take Two to make even on it DNF needed to earn them those $ 10 million or so they spent acquiring the publishing rights + whatever they spent on marketing back. That is not inconceivable.
Then there is Atari/Infogrames/GT Interactive. They paid 3D Realms a $ 400,000 signing bonus as an advanced against DNF royalties for getting the publishing rights. They later sold those publishing rights as I mentioned above. So I would think the whole thing was pretty profitable for them.
As far as 3D Realms goes, when they were sued by Take Two they put out a press release that they had spent $ 20 million+ of their own money on the game. So depending on the specifics of their deals with Gearbox and Take Two and just how well the sales went, it is indeed quite possible that the game was not profitable for them.