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bardicverse on 11 December 2009
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starterman1989 said:
bardicverse said:
woopah said:
I thought over 100k was good .....

No, its only good when its for the PS3 apparently, as ToV launch had shown. If its for the Wii, its a major bomb, despite costing less than half the production costs of the PS3 game. It takes people like Tres to troll the topic and make multiple posts to make sure people see it this way, weren't you aware?

Here's an interesting tidbit - Even if ToG reaches only 250k, it will still be more profitable to have developed than ToV on the HD systems in Japan. Thus, the dev will be more enticed to bring more Tales games to the Wii than the HD systems.

Interesting statement... Any data to back it up? Development cost, maybe? Retailer cut, platform holder royalty, promotion fee, or revenue calculation? Seems like you know quite a bit. *_*

Should we roll out the generic profit map again? Average Wii development is 6.5 mil dollars. Average HD development is 18 mil dollars.

After retailer cut, average $50 game, publisher receives roughly 40, after cost return for manufacturing, advertising, etc, roughly $20 is left for profit.

Depending on the contract, the developer is given money ahead of time to produce the game. When X amount of sales are made, they then take in profit. Generally this number is around 500k units in basic markets. So, until the game hits that agreed upon number, the actual dev doesn't get any royalty money. So, by that, no Tales game has ever provided a royalty to the developer yet.

Backtracking, we have this concept of $20 profit to the publisher per game sold, and an investment of 7 mil to develop a Wii game and 18 mil for a PS3 game.

Current numbers put ToV at 370k roughly. 370x20 =   $7,400,000

Current numbers put ToS at 250k roughly. 250x20 = $5,000,000

Granted, this is a ballpark figure, as both games operate at a loss which no publisher would stand for, but the general ballpark puts ToS closer to its break-even/profit line than ToV does. 

There is a flex point to the development costs, naturally, as party games and non AAA titles tend to run cheaper on all systems. AAA games on Wii can reach 15 mil and PS3 AAA games can escalate to 30-60 mil.

Edit- So, some people are stating 700k for Tov, for WW, where I was specifically talking about Japan here. Yet, do the same math = 700k x20 = $14 mil , still shy of the average production cost/profit margin for a HD game.