psrock said:
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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Ok another thing you're not getting is not all 1 billion is even making it back to Acitivision... much like that Avatar reference (which why you called it a game and not a movie I dunno cause the game didn't make 1 billion in revenue) but revenue generated is calculated by how much those tickets sell for and how many sell, who sells those tickets? Theaters. They take their cut, the money finally makes it back to the people making the movie, which in terms of money a person makes since you need that I guess...
A person works for a business, he does jobs for a company, which makes said company money, say they work at Gamestop, and sells 100k worth of products for a part time job, but his cut is really about 5k for that year, even though he generated 100k dollars worth of sales and doing his job effectively so he generated 100k revenue but after the product cost, the business making its money, etc they give you a fraction of that, thats the actual income, which could yes be derived into how much you spend out in bills, games, food, etc. and how much you have left over is your savings.
Revenue is just the total money the game has created for all aspects, not all of that makes it back to activision which is then split up more for the money they had to spend.
In the end revenue is a good for everyone but doesn't always mean the company "made" anything, going back to Red Dead Redemtion, even if that game only sells a million copies, it will bring in enough revenue for retailers to make a good bundle, pay employees, etc.
You might not things in such complex ways but thats how it works. That 1 billion revenue is going to not only Acitvision, but also Wal-Mart, Gamestop, Target, TV stations, game magazines, etc and all of their employees.
Essay Pro