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Staying alive?

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7 comments, last by bit 24 years, 10 months ago
For that matter...read the "financial reality" articles scattered around the web about how few computer games actually make money...and then ask yourself, "Why do publishers keep shovelling money towards these 'losing propositions'?"

It's like the American workforce, horribly underworked and mostly bored stiff, but always complaining about having "too much to do, can't possibly pick up any more..."

Maybe the reality of the situation isn't what's actually put down in writing and/or presented to the public. Or, as Ayn Rand was fond of saying, "Don't examine the fallacy. Examine the *result* of the fallacy."

Some people give away their hard work because money isn't what they're after. It's recognition and "bragging rights". But that's outside the scope of your question since you were asking about groups with an actual payroll to meet.

The Linux distribution types make their money off of selling support for the product. Sure, it's free to use and even modify, but if you want help...that'll cost you.

Other software vendors make their software in "tiers", with the first tier free. If you want the "advanced versions", they have those available for sale. This is akin to "normal shareware."

Sometimes, though, it's not necessary to actually turn a profit to be able to attract venture capital and other forms of income. Take Yahoo, for instance. Never seen a profitable day in its life and yet it continues to attract money. Investors are betting that it *will* make money, so they'll help Yahoo make payroll and build new servers and what not in the meantime.

Say...is this another of those business-related posts that needs a forum of its own? Hint hint hint... ;-)

Another, more historical example, is any "gold rush" you care to think of. How many miners got rich? Nowhere near as many as those who kept the miners supplied with food, tents, lanterns, picks, shovels, and so on. The gold was "free", right? Just waiting for someone to come get it...except that more people got rich off miners who never mined a nugget than off the actual gold.

Damn, I'm meandering here...I think I'll stop while I'm not totally drowning in rhetoric and speculation and still within a few hundred meters of the point... ;-)

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DavidRM
Samu Games

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Who says games under Linux have to be OpenSource/Free?

Take Loki, for example. THey have produced several successful commercial games under Linux. THe GNU/OS fanatics don't like this, but they can screw themselves.

After careful deliberation, I have come to the conclusion that Nazrix is not cool. I am sorry for any inconvienience my previous mistake may have caused. We now return you to the original programming

One way of distributing opensource games and still make money is to release the code as opensource, but copyright all the data that comes with it (graphics, sound, level designs) and so on. People have to buy the game if they want to play it, even though the actual game code can be freely copied and modified. Also, a lot of people will pay for CDs rather than download if the whole game takes up 1200MB of data compressed.

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=> Arfa <=

=> Arfa <=
Thanks for the responses guys.

I wasn't directing the question(s) towards games in particular. Mainly at the software industry in general.

It just seems that almost EVERYTHING is free on Linux and I was curious how the hell these companies were able to do it.

- Chris

Oh that's easy. Linux distributors such as SuSE and RedHat offer boxed sets. These sell at around the £25-£50 mark and include such goodies as tech support, extra commercial programs and printed manuals. The SuSE box I've got contains a 430 page manual and six CDs - only the first is downloadable.

Other Linux-based groups, such as the GNOME and KDE teams, are sponsored by Linux vendors or distributors.

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=> Arfa <=

=> Arfa <=
Again, there is plenty of commercial software on Linux. Take StarOffice for example. It's free for personal use, but if you wish to use it commercially, you have to pay.

Same with WordPerfect 8.

Also there is software such as ADABAS D, BRU 2000, MetroX, ApplixWare and too many other to list off the top of my head.

After careful deliberation, I have come to the conclusion that Nazrix is not cool. I am sorry for any inconvienience my previous mistake may have caused. We now return you to the original programming

this is offtopic, but maybe it's interesting for you:
sun buyed star division and makes staroffice(new name .com office) freely available for commercial use, too. and they are going to release the source under a license like the mozilla license.

Sengir


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Sengir
I was just curious about how companies are able to stay afloat when they distribute their software freely?

I can understand how releasing the source code won't hurt them financially. But, the programs too?

I know a lot of companies people run in their spare time and have volunteers for the development teams. Yet there are many companies out there who have employees, expenses, and other such stuff. How do they do it w/o going broke in a week? Where is the revenue?

- Chris

Also keep in mind that something like 95% of software development is in-house. That means only 5% of software development is to sell on store shelves or through business contracts. Why shouldn't I release the code to a time-clock program I wrote for the use of my one hundred person company? I'm not losing any revenue thereby, and maybe other people will like it and use it. And if they use it, they'll probably also patch it, fix it, and upgrade it. This of course means the program is better for all of us, without us having to muck with the program ourselves.

This is just one example of how a company could very reasonably release software for free. There are many others.

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Dane Jackson - zuvembi@mindless.com
The meek shall inherit what they're bloody well given.
And be thankful for it.

Dane Jackson - zuvembi@mindless.com
The meek shall inherit what they're bloody well given.
And be thankful for it.

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