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shanbcn said:
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.

$12 goes to retailer if game is sold at $60. Since Sony doesnt need to pay himself for royality fee. Sony easly make $42 per game, provided game is sold at $60. Some times is more if you include specal editions and also less when price drops. There was Forbes article about it but i cant find it now. Ascension sold 630k first month with bundles. Overall it needs to sell $1.1 in USA to get back development and marketing budget which is $50 million. Gow games have exclent legs and there will be PS4 version as well. So it may sell closer to 4 million world wide.

You mean this?:

First of all that story is from 2006 so I'd rather take the newer source, since there were only few games back then that actually cost $60.
Then that pie chart shows the percental amount of money spent calculated down to each sold game, which just cannot be transferred to any other game.
Ubisoft surely didn't need to spend $15 for Art/Design for every sold copy of the Just Dance series, simply because the game sold so much.
Costs for returns aren't included either.