MadWorld is now at 170k!

[XiaoMay]

puffy said:
MadWorld will be a flop to Sega if they don't profit from the title.. Let's have a guess at how likely that is..

We know that the average cost of developing a GameCube game was between $3 and $6 Million so lets pretend that Wii development is a bit more expensive say between $4 and $8 Million. I think everyone that has played MadWorld would agree that it probably didn't have massive levels of funding and so we'll put it a $5 Million just to be on the safe side. How about marketing? Throw in another million I guess..

So Sega has to get over $6 Million from the title otherwise it's a flop. How many copies would it have to sell then? Going by this information:

For a $49.95 RRP title, a 3rd-party publisher will make around $17-$20 per unit.

For a $39.95 RRP title, a 3rd-party publisher will make around $13-$15 per unit.

It's safe to put the %Revenue for Sega for each copy sold to be at 30% - Just to be on the safe side.. Now I also want to make another accomodation for the sceptics and assume that all sales are made at a price point of $35 after the first 100k in sales. Fair enough? OK so let's work out how much revenue Sega made from those first 100k and we'll for the lower estimate at $17 per unit on this one.

100k*$17 = $1,700,000

So now we have $4.3 Million left.. lets see how many copies of MadWorld would need to sell at the $35 price point going by 30% revenue off of each copy..

4,300,000/10.5 = 409,523.

WAIT WHAT? MadWorld would need a total of 509,523 copies to break even?? Are you Wii fanboys kidding me?

That's assuming up until 500k:

- $1 Million was spent on marketing/executive level expenses
- The game costed around $5 Million to make
- The average cost of the game was $35 after the initial 100k

Hmm looks like Sega might make some profit doesn't it guys.

 

well, anyway Sega said they were happy with MadWorld sales and it's one of the most successful title of ex-Clover ever