Renar said:
Expanding the lower part of the graph (make it semi-log.) would be helpful. But I do think it already shows several points, that we basically knew already. First, that most Wii games are successful, since they only need about 150K sales (~$7.5M in overall revenue). With this being just US, most all Wii games look to have achieved that. Canada would add 10% more, plus any other WW sales. X360 games should be successful, since on average they seem to run 300K in sales, (~$18M in overall revenue). Of course they have the higher development costs and post-production cost (advertising), but if cost controls are maintained, they should be okay. Based on the losses coming out of a number of game companies, unfortunately, that doesn't seem to be the case. Finally, it shows the homogeniality of the X360 vs Wii population. Meaning that good hardcore FPS, say, has a better chance of selling very well on the X360 versus the Wii. But more quirky games will do okay on the Wii, especially as its console sales grow. |
Although there are probably many games that are profitable at 150,000 sales, I think a better estimate for a break-even point is probably 250,000 ... It may not be that big of a difference but after retailer profit, licencing fees, and marketing costs a publisher/developer (probably) only makes $20 to $40 per game (depending on the price of the game and other factors) which would mean that 250,000 sales would translate to $5 Million to $10 Million.








