Onimusha12 said:
where are you getting that they're making $40 a unit. I want a link. Also I think a more realistic figure of units shipped would be within the range of 3-3.5m, not 4. It all boils down to how much money they make off each unit. Either way, while I doubt they've broken even, they're probably getting close. |
Oh, now you want a link. Where is your link?
What I claiming is ostensible through plain deductive reasoning. We are going off US prices (which is actually kind of inaccurate to use for the whole market, since prices are relatively higher elsewhere).
We start with $60
Retailers generally get a $4-6 margin per title - $55
Sony requires a licensing fee which is under or around $5, we will say $3.50 - $51.50
Replication cost of a dual-layer Blu-Ray plus casing, we will estimate around $3 - $48.50
Advertising/Marketing costs for the game (Sony paid for it in some regions) we will estimate at $5 - $43.50
Miscellaneous expenses (retailer generally pays for shipping) we will generously place at $3.50 per disc - $40.00
And of course the more copies a game sells the less these margins become per disc on things like advertising and replication costs. You are also conveniently ignoring any of the in-game advertising, such as the Apple advertisements and Sony advertisements. Please, show us a link to this podcast you so vividly remember where the development cost is $70 million.
We had two bags of grass, seventy-five pellets of mescaline, five sheets of high-powered blotter acid, a salt shaker half full of cocaine, a whole galaxy of multi-colored uppers, downers, screamers, laughers…Also a quart of tequila, a quart of rum, a case of beer, a pint of raw ether and two dozen amyls. The only thing that really worried me was the ether. There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge. –Raoul Duke
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