madskillz said:
When it comes to game pricing, and the peculiarly common price tag of $59.99, someone needs to ask, "How did this happen?"
It helps to understand how that $60 pie gets sliced up among the many hungry mouths trying to feed their businesses. Divnich figures the typical breakdown works something like this:
- $12 goes to the retailer.
- $5 goes toward discounts, game returns and retail cross-marketing. (You didn't think those cardboard standees were free, did you?)
- $10 goes toward cost of goods sold, which includes manufacturing the game disc, shipping the games to the store and anything else directly related to production and delivery of the game package.
"It is generally accepted that most publishers receive $30 to $35 per game sold before they run into overhead, development and marketing costs."
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They forgot the $8-10 license to MS/Sony/Nintendo, which would mean that third party publishers only get $20-27 per game sold (assuming their other numbers are correct).
