How do you know if a game or console made profit or not?

[Lingyis]

Tetsuya said:

Dolla Dolla said:
In order to figure out if a game made profit or not, you have to know the estimated development cost plus advertisement costs. Then, knowing the sale price and the amount of copies sold, you know how much revenue was produced from the game.

The number you stated, $104,970,000 is the revenue. This is not complete profit made from the game. Retailers take a certain cut from each game they sell, the publisher has to pay shipping costs, the development team must be paid for their work, etc, etc, etc. Lots and lots of costs. So, a good chunk of the revenue is never seen by the publisher.

but the revenue is correct right??? i know they dont see that much becasue they have to cut some of that money to development costs and workers retailers and stuff right??

 the revenue is NOT correct.  104,970,000 would be closer to the GROSS, kind of like box office numbers.  retailers make money, after all!  retailers on video games i'd estimate get a 33% markup, i.e. 25% of $35 would be retailer's profit on each sale.  

 the revenue would be closer to $75 mln.