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bugrimmar said:

Alright, I'm obviously too idiotic to understand these things (i'm a philosophy major who can't use math for anything). Can anyone help me answer these questions:

 

1.) how does a strong currency make a local company lower their profits? i.e., sony lowering profits because of the yen being strong.

2.) when i buy a game, where does the $59.99 actually go? i.e., how much goes to the developer, the publisher, the retailer, and who else gets a piece.

3.) how much is the production cost of the consoles today?

 

1) Stronger local currency means that when they trade from dollar to yen in this case they get less yen. So when the yen gets weaker for each dollar they get more yen.

 

2) That depends on cost of making game and the deal the developer and publisher make and the marketing costs its individual per game agreement.

 

3)It has been reported that the Wii sithe only one that makes a profit the 360 might a small profit but not much.



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