Reggie says most Wii games can make a profit with under a million sold.

[bdbdbd]

Reddeadguy said:

WereKitten said:
^I linked the info given by another user, who I understand worked in commercial development of games. The difference you're seeing (even counting something around $10 of license to the platform holder) might be in the shipping/media costs?
It might very well be that a $60 game gives a bigger share to the publisher, I merely extrapolated the difference from $40->$50 to $60 - and that's what I meant when I said $4-5 per $10 difference, not intended over the total price.
Of course a bigger share for a $60 game once again doesn't change the gist of the argumentation, but I really can't give you the absolute values with any certainty.

Thanks. I was just wondering where you got your figures from.

I think the games are more profitable, especially when they are a major title like a GTA or MW. Many costs in advertising are picked up by retailers, Microsoft and Sony.  And many times the royalty fees are dropped for the major titles. I would guess the retailer takes a $10 chunk, packaging/materials/shipping is another $5, and royalty fees range from $6-$10. The games should generate something like $36-$42 in revenue for the publisher at a 59.99 sku. And let's not forget that for many publishers, nearly half of their sales will go overseas now. The currency exchanges and I believe the higher retail costs in Europe should be beneificial to U.S. publishers.

Actually there's one more factor to take into account in EU sales, which is taxes. In a 50€ game, roughly 10€ is VAT.