Pachter's explanation on where your 60 dollars goes

[Showertea]

outlawauron said:

makingmusic476 said:

kitler53 said:
277,778 full price sales for every 10 million in investment to break even. So a big budget game like GT ($60M) would need 1.67M sales to break even.

wii games would need a few more (per 10 million in investment) since full price wii games are only $50. probably like 300-320k.

Sony doesn't have to pay itself licensing fees, so they get $48 a game, thus requiring 1.25 million to break even with a $60 million budget.

The sales of Prologue are paying for that nicely.

Well, you can't really convert that exactly as Prologue started out at $40.

But Prologue was also a digitally distributed game, which means retail margin equals zero and distribution equals zero, and those two factors combine to be about $20. So, theoretically Sony should make about as much money on a $40 Digital Distribution game as they do on a $60 hard-copy game, assuming they would be paying for the Playstation Network either way, and its costs aren't factored in.

 

Oh, dear, I'm beginning to sound like a Sony fanboy... Mario Kart Wii will more than quintuple the sales of GT5! Sony'll go bankrupt within the week!