| NJ5 said: @jcp234: Of course a certain number of units has to be sold for profitability. The number is said to be around 1 million for the average PS360 game (which tells us a publisher gets around $20 per shipped copy after eliminating retailer and licensing fees, shipping and manufacturing costs). |
Right, I realized I probably did not do a good job of verbalizing what I intended.
The post I responded to communicated something to the fact that if Activision was selling products at a loss for the PS3 platform, that Activision would just sell more products at a loss if the PS3 install base increased (or did I misinterpret that?)
Products are usually priced to cover variable costs...and after a certain number of units sold, fixed costs are eventually covered as well. So it is possible that if Activision did hypothetically take a loss on certain PS3 projects...it could have made a profit if more units were shifted...
I hope that made more sense? If not, I give up...lol
I'm not a fanboy, I just try to tip the balance in favor of logic and common sense.
