By using this site, you agree to our Privacy Policy and our Terms of Use. Close

There are several splits in revenue, for an average 60$ next gen game you get this kind of breakdown:

Console owner: 10-15$
Retailer 4-5$

Production: the rest
Production consists of paying the developers for their wages, costs associated with development, marketing, packaging, distribution.

In the initial phase the developers make about 1$ per copy sold of profit. Later on, when the previously mentioned "production costs" is paid off, that revenue becomes dev profit.

Example:
Retailer buys games for 55$
15$ goes to Sony for every game sold.

game costs 50Million USD to make.
Revenue for each game sold is 40$ USD.
Dev makes 1$ per game sold.
Costs associated with sales (packaging, discs, distribution) is about 4$ per copy.
Remaining revenue is 35$

35$ per game sold x 1.428 Million copies sold = 50M (development costs are paid off)

In the case of a game like MGS 4, which sold 4.4M copies,
3 Million games x 35$ per copy = Dev profit (105 Million USD + 1$ per copy for first 1.428M copies)

Additionally, at 4.4 Million copies sold, Sony, being the console owner, gets 4.4M x 15$, or 66 Million USD.