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HappySqurriel on 19 January 2009
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jammy2211 said:
HappySqurriel said:
jammy2211 said:

I believe that $100 million was just spin, whether it was the 'budget' and they spent alot less, just to WOW the media, or if it included marketing or what I dunno but no way in hell does a game cost that much to make.

Andddddddddddd, it generated revenue of $710 million so er, in short, no they're not.

 


I'll give GTA4 the benefit of the doubt, and we will assume that development and marketing costs were $100,000,000 in total, and that it generated $700,000,000 million in revenue before retailers and console manufacturers take their cut ... That works ot to (roughly) $7 per dollar invested.

In contrast the "Bomb" Boom Blox was probably developed for $2.5 Million (or less) and generated more than $28 Million in revenue before retailers and console manufacturers take their cut ... That works out to (roughly) $11 per dollar invested.

 

And the "Bomb" Boom Blox had what? 0 markting? Despite it's TV marketing campaign and Spielberg endorsement? Marketing costs escalate quickly, especially when you're doing it in 6 different territories.

The $710 million is definitely after retailers take their cut, as that's where the revenue comes from, what the retailers pay. I'd imagine it has the royalties for Microsoft and Sony in there, but if we're honest, after giving Microsoft Exlucisve DLC and being Sony's bigger release of last gen I'm sure they'd have 'negotiated' those expenses.

Where you pulled $28 million from I don't know either, but hey I'm sure you do. I still see GTA making a good $500 million profit though. Why the hell you decided to compare something like Boom Blox to GTA I've not a clue, it sort of goes completely against my whole point of looking at every game within it's context.

 

So, this site has (roughly) 12 Million copies of Grand Theft Auto 4 being sold on consoles at (roughly) $60 per copy for a grand total of $720 Million in revenue ... Now, it would be a safe estimate to presume that between $20 and $25 per copy of those games goes to the retailer and console manufacturer which means that between (about) $420 and $480 Million was generated from console sales. Now, where would this additional $300,000,000 in revenue come from? Did the PC sell more copies of GTA4 than were sold on the XBox 360?

Edit: ... And the Boom Blox revenue comes from multiplying 700,000 by $40