MaxwellGT2000 said:
psrock said:
MaxwellGT2000 said:
psrock said:
MaxwellGT2000 said:
psrock said:
vonboysp said:
if they'd rather get attention then make a profit, fine by me.
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Activision made 1 billion dollars in 2 months from one game, if they don't make a profit, we need to investigate.
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The game generated 1 billion revenue, not all of that is money they "made", you gotta take out that 200 million ad campaign they touted first, then shipping, production, retail cut, development costs, taxes, etc etc...
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so, it's still 800 million left and they still selling. Please, if you are going to use the revenue excuse, at least know the budget one.
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... Whats with the attitude? Don't act like that expecting people to respond nicely...
They said 1 billion in revenue... it's been no different since the news hit... but revenue is not profit which is what a company "makes" on a game, if they had 1 billion revenue but somehow spent 2 billion on the game they didn't "make" jack.
Am I saying this game didn't make a shit ton of money? no I'm not. Am I saying that revenue isn't profit? Why yes I am because its a common misconception and it spreads worse than the plague.
Just like the average HD game (from EA's mouth) takes about 1.1 million copies to break even thats roughly 66 million revenue, but look at Rockstar saying Red Dead Redemtion needs 5 million copies at full price to break even, thats 300 million in revenue, and they wont make money until they break that plane.
No matter how much revenue they make, if it cost them more than that revenue to make then they don't "make" that money, the only time you can claim revenue = profit is if something cost them nothing and that doesn't happen in business.
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But in trying to respond to me saying they made 1 billion dollars, which the game generated, you made the same mistake I made. Budget is not actual amounts used, it's the amount you put aside which you can use. It's not actual money spent. I doubt they used 200 million dollars for marketing, when big movies don't even use that much.
My point still stands, the game still made 1 billion dollars, and if Activision doent make a profit, we need to investigate.
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LOL Budget isn't money you use? Because you put that aside? Really???
Money you spend is cost, budget is the planned cost, you can go over budget and it'll cost more.
Revenue isn't all going back to developers and owners of said game or in any business, this is how economics works, to get a gallon of milk you're not buying it from just the company that produced the milk, but the store that sold it, the worker that delivered it, the gas comapny that fuels the vehicles used, the AC company used to keep it cooled, etc...
In the end
Revenue - cost to make - retail cut - production cost - dilvery charges - misc. = profit and profit is simply their bottom line
The only time you'll really see Activision's profits or losses are at the end of their fiscal year, and yes if they don't make a profit here there is a serious issue.
This is all business 101
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It still comes out that MWF2 made 1 billion dollars. Yaeh, after you deduct the cost, the profit will lower.
And, it's always funny that only in gaming people use that revenue excuse, we have a big thread about Avatar making over 1 billion dollars, while most knew how expensive the game was to produce, no one actually brought that up.
When people ask me how much money I make, I never use the Net profit either, yet that's really what I make, but mostly everone uses the number before taxes and ect..
Again, The game generated 1 billion dollars in 2 months, if Activision doesnt make a proft, we need to investigate.
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