Quick note about the profits comment.
Let's say a game cost $10M to develop, advertise, and publish. This does not mean that if it makes $11M in revenue that a $1M profit has been turned. A publisher's portfolio doesn't work like that. Games that make it to market not only fund their own development cost, but also fund all the publisher's other business activities such as:
-games in development
-other games on market that have not recouped dev costs
-cost of running business.
-and 100s of other things
In other words, revenue has alot of operating expenses to pay for before profit is generated. Reggie can fairly say that atleast $50M (1M * $50) in revenue is needed to turn a profit even if a game cost <$10M to make, publish, and advertise. That other $40M well cover operating costs and deficiets incurred by the publisher before profit is made.
_____________________________________________________
Check out the VGC Crunch this Podcast and Blog at www.tsnetcast.com







