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TheSource said:

Normal PS3/360 titles are supposed to cost $5,000,000 to $10,000,000 to make with top titles costing $20,000,000 to $30,000,000.

Supposedly after all the costs are factored in to consideration, the game maker gets $31 for a PS3 title, while a game maker gets $38 for a 360 title.

Most Wii games are supposed to cost $2,000,000 to $5,000,000 to make by comparison. PSP is probably $1,500,000 to $3,500,000, DS is maybe $800,000 to $2,000,000.

Essentially you can be profitable at the following thresholds with an average game, but it varies alot:

DS - 100k

PSP - 125k

Wii - 165k

360 - 200k

PS3 - 242k

 

 

If this is true, then how on earth do the majority of the companies lose money?

The Ps3 and Wii have the lowest % of titles that has sold this amount, yet 143 of the 305 tracked titles have sold over 240K.

On Wii it is 222 out of 538.

That's 41.2% and 46.8%. Seeing as a title that sells over the threshold is likely to double, triple, quarduple, or perhaps even more, that number, it seems odd for this to be the number.