Can we please re-define the term FLOP

[Kantor]

Cypher1980 said:

Kantor said:

Cypher1980 said:
Any game that fails to cover development costs including Upfront investment by console manufacturers (to cover launch titles) is a FLOP (eg LAIR)

Any game that meets dev costs but only achieves a 20 percent return on investment as profit can be called a QUALIFIED FLOP (eg LBP)

Any game that meets dev costs but achieves less than a 40 percent return on investment as profit can be called a QUALIFIED SUCCESS (eg DEAD SPACE)

As above but 40 - 100 percent profit is called a SUCCESS (eg UNCHARTED)

As above but over 100 percent profit is called a HIT (eg MGS4)

As above but over 200 percent profit is called an OUT and OUT HIT (eg GTA IV, HALO 3)

LBP made a 20% profit with 2.5 million sales?

With 40 people on the dev team?

I reckon its about right.

2.5 mill sales RRP 60 US

Price to POS 30-35 US

Advertising, Production and Packaging recall and repress, Blu Ray and Sony royalties minus Business Tax on profit

would equate to approx 12 US per game net profit.

12 x 2.5mil = 30 mil take home

I doubt that it cost less than 24 mil to develop. Even with only 40 in the team it was a long time being developed and there are greater overheads than just the staff payroll to factor in.

$12 per game? Is that it?

Even assuming that were true (which I doubt), the game did not cost $24 million to make. Have you seen the game? It looks great, but it was in development for, what, 2.5 years? It's not in 3D, and as I said, 40 employees!

If Uncharted didn't cost $24 million, I doubt that LBP did. In fact, since Uncharted and LBP cost the same amount, are you saying that Uncharted cost less to develop than LBP?