| Gojimaster said: I don't understand the Iphone videogame market. It doesn't seem like a good financial deal for publishers to put their star games on that platform. Yet, we keep seeing big games such as EA Active, Streetfighter 4, and Grand Theft Auto Chinatown Wars being placed on this system. Streetfighter 4 is being priced at only $10 on the Ipod Touch. How the heck are they going to make any money, especially after Apple gets their cut? I know portable developers are flocking to the Iphone, but it seems like fool's gold for all big publishers. If these games can sell several hundred thousands of copies for the DS or PSP for $30, why are developers so intent on putting them on the Iphone in the $3-$10 range? Grand theft Auto Chinatown Wars was a million seller for the DS, but they still want to move it to Iphone. Somone please enlighten me.
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Take 2 gets 70% of the revenue of that iPhone/iPod sale, compared to 40-50% of a DS retail sale. They will never overproduce or overship units on the App Store, so they won't have to worry about returned or discounted merchandise killing the profits on that revenue. GTA:CW will never be out of stock or out of print at the App Store for the foreseeable future, so Take 2 may continue to see revenue from the iPhone version long after the last unit for DS ships to retail.
Actual costs and revenue numbers from the App Store are scarce, but I don't think there would be quite so much developer enthusiasm for the platform if there weren't people making good money on it.
"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event." — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.
