Capcom disscus the Madworld sales

[Ail]

superchunk said:

noname2200 said:

superchunk said:

noname2200 said:

superchunk said:

Voltaire said:
Publishers dont gain $25 from a sale. A Gamastruta (?) article said it cost a retailer $54 for a game theyd sell for $60.

True.

As someone who worked in retail for over 10years; games, music, movies, etc have a very small markup. So Sega probably got ~$47 or so per game in gross profit. Net before payment to developer was probably closer to $42. Granted, this last part is pure speculation.

 

You're forgetting other costs though: manufacturing, shipping, duties, royalties, etc.

 

I'm guestimating that ~$5 per game is for those items except royalties as that is part of 'payment to developer'.

 

That doesn't seem to add up, though. You're splitting $18 between the console manufacturer, the retailer, the manufacturer, the shipper, etc. I don't see that as plausible. Forbes, for instance, has the retailer alone averaging a $12 cut, with the console manufacturer taking another $8 bite from that apple. So we're already at $20, before getting to all those other parties.

 

I was saying on a $50 game:

$3 to retailer

$5 to costs related to shipping (and all costs related), materials (and all costs related, incl packaging),  and advertising

$42 somehow split between publisher and developer

Now, I am 95% sure on the retailer part as I when I worked at Circuit City for 8 years we bought items at CC's cost. On games/movies/music/etc it was only a few dollars off if anything of the retail price. That was due to the almost no markup on these items. So I would expect if I got $2 off, then CC probably paid $47 for that $50 item as $1 would be part of their cost for selling the game. Granted I could be off by $1 or $2, but I doubt it.

So, Maybe a max of $5 goes to retailer.

Now for the costs in the $5 I have above, that is on a mass scale item where they are making hundreds of thousands of copies if not millions. We all know they pay <$1 per disc. So include case/manuals/ect is probably $4 for everythign, in the quantities that they get. Then add shipping costs of ~$1 per game. So maybe I was lowballing that figure.

So, maybe a max of $10 goes to manufacturing, shipping, advertising.

That's still leaves $35 easy for publisher and dev.

Currently that means SEGA has netted over $62 million.

So, the OP is about right in his guestimatation that they are about half way to breaking even. Should be doable and that really isn't bad considering the type of game Madworld is, its graphic style, and that its a new IP.

It will be profitable in its lifetime.

 

 

 

You are grossly underestimating the profit retail makes,

At 3$ a game if you add the retailing costs, retail woudn't make a profit.

The latests Gamestop revenue disclosure shows us they make a 21% gross profit on new software.

Which means at most they purchase new games at 39$ a pop.

If you don't believe me here are the actual financial numbers : http://www.gamasutra.com/php-bin/news_index.php?story=23396.

Granted CC hardly sells software so probably has to purchase games for more than Gamestop...

 

You're totally forgetting to include the licencing fees. Nintendo get their cut on every Wii game sale.....