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Cypher1980 on 15 November 2009
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Kantor said:
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?

The game is in 3d. Just because you dont move around the whole virtual world and the representation is primarily what is known as 2.5d doesnt mean that each object is not modelled in 3d.

Trust me Sackboy is no sprite, he is an animated 3d model so is every piece of his virtual world.

As for the 12 US per game. I know the 30-35 POS is right but the other factors I have to make intelligent guesses at. So I agree there is significant room for error. However given the secretive nature of all companies about dev costs and bottom line profit per unit I doubt a clear figure will ever emerge.

40 Employees with NI contributions and pension contributions and healthcare and Insurance payments. Working in a building which needs to be heated and lit and supplied with electricity along with security in Cambridge. A business which garners corporation tax and rates. Computers which need to be used with Dev kits which incur a cost per head charge. It all adds up.

Also due to the infamous (if overblown IMHO) Koran balls up the entire first print run which was high given the hopes for the game needed to be recalled and re pressed. This will not have been done for free.

Maybe one day a company will be brave and throw open the doors on all Dev costs and subsequent sales and profit/loss, but I wont hold my breath.

Im sorry but I dont understand the latter half of your last paragraph so cannot comment.