What I find really interesting is the distribution of costs between functions, and also the costs of goods sold. I am under the impression that game development falls under R&D costs, but if that is so then I'm really buffled. They are spending almost 3 times more on General and administrative costs than on R&D, and G&A is more than 10% of their revenue. Morever, R&D is about 4% of revenue, which is really, really low. Even for a manufacturing company that wouldn't be a lot, but for a software company it seems impossibly low. Am I missing something? Do some of the game creation costs fall under G&A? What is actually included in R&D?
Costs of goods sold includes development costs and internal royalties and licensing costs, but are those costs only related to the sold goods, meaning that the costs of development of upcoming games is not included in that figure?
