bardicverse said:
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.
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