Your talking about Profit Margin, royalties or not it doesn't matter at a point the over head was paid for and everyone was making money, the development over head doesn't include running expidentures outside of a service charge which isn't the case as this is royalties.
In the end for the use of this conversation we could say Nintendo's portion is the only portion that should be eliminated, which would only help to thin the gap in profit and lower the margin for all others involved.
If your going to cut and slice then A lot of people out side of Konami were involved in MGS4's development also, in that case your just giving up. The one inarguable fact is that initial production of that product does not come close to rivaling that of MGS4.
Marketing and all other portions of the over head can be understood as similar, this case only elaborates on a generalization, to be honest I don't know why I'm debating thi... nevermind...
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