| Shanobi said:
God, I get so tired of correcting people on things that they should know, especially on a site where people debate sales and costs. Google is your friend.
Last gen was 5-6 dollars per game sold, this gen isn't even that.
"For the companies that do put next-generation titles out early, making a profit is tough. Namco Bandai presidentTakeo Takasu said his company needs to sell at least 500,000 copies of each PlayStation 3 game it creates to make a profit. Analysts predict that some other publishers will need to clear 1 million units to get in the black--and start making about $1 per game sold.
The remaining $59 per game goes into many hands. The biggest portion--nearly 45%--goes toward simply programming and designing the game itself. Then the console maker, retailer and marketers each get a cut. Add in manufacturing and management costs, and depending on the type of game, a license fee. Some gamemakers also have to pay a distributor to help get their titles in stores." http://www.forbes.com/2006/12/19/ps3-xbox360-costs-tech-cx_rr_game06_1219expensivegames.html
It's called the distribution system, and it says hello.
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45% of $60 is much more than 5 or 6 bucks, so if that's what devs (the people who do the aforementioned programming and designing) get then most should be doing all right with 500k units sold of a 360 game.
