Konami's Q1 Profit up 50 percent, Thank you Solid Snake!

[DMeisterJ]

akuma587 said:

Onimusha12 said:

akuma587 said:
Alright, we are assuming they have sold around 4 million to retailers and that they make about $40 per game (the average is probably higher than that, they made more than that in Japan with higher pricing, and the discrepancy between the dollar and the yen is beneficial to Konami, a Japanese company, not to mention how overpriced games in Europe are)

3,940,000 x $40 = $157,600,000

So even if we assume a $70 million dev cost, Konami has already DOUBLED that.

 

 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.

She won't give you any links.  As everyone knows, 99 percent of her posts are bull-shit.