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kowenicki said:
binary solo said:
kowenicki said:
binary solo said:
Nsanity said:
binary solo said:
If the game cost $50 million to produce, then factoring in marketing costs this game needs to sell ~1.2 million at full price to turn a profit.

The Super Bowl advertisment alone was probably a few million.

Yep 1.2 million @ full price = $72 million. I figure around $20 million marketing, 10% of the marketing budget on Superbowl sounds about right.

retailers sell it for free? 

That's the $2 million. Don't retailers get screwed on new games?


Last number I saw was that the retailer gets $15 from a $60 game:

 

As you can see, for a typical console-based video game that costs U.S. $60:

  • $15 goes to Retailers: eg: GameStop, Electronic Boutique, Walmart, Amazon
  • $7 goes to Returns/PP/MDF: Returns are money paid-out to retailers for product returns. PP stands for “price-protection” which is money paid back through the chain if/when the publisher reduces the video game’s price. MDF stands for  ‘Marketing Development Funds” which are paid to retailers for promotions such as TV ads, local flyers, and in-store marketing displays.
  • $4 goes to Distribution/COGs: Distribution = shipping and warehousing. COGs = Cost of goods sale. ie: the cost of the physical DVD, manufacturing, the instruction manual and the case.
  • $7  Platform Royalty Fee: For every game sold approximately $7 goes to Microsoft, Sony or Nintendo, as applicable, for whatever platform the game plays on – eg: Xbox 360, PS3, Wii.
  • $27 goes to the Publisher. Unfortunately this $27 is not further broken down to show how much of the $27 typically goes to independent developers. The amount paid to independant video game developers can be anywhere from 10% to 70% of the amount paid to the publisher – but often only after the publisher has first recouped any advances paid to such third party developers.

Exactly. 1.47m sales at full price needed IF the $50m figure is correct.

If marketing is included nothing changes, if marketing is excluded expect another 300k to recoup the costs.


Though speculating about guessed data that don't rely on any basis is rather worthless. At least for this particular game.
Also non Sony games on Sony platforms would obviously need more to break even.