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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.  



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