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. |
If a game is full price ($60), then a first party game brings in approximtaely $34 - $36, with a 3rd party game bringing in a tad under $30., factoring in marketing, distribution and the retailer's cut.
http://unsubject.files.wordpress.com/2010/10/box_sales.jpg
http://img405.imageshack.us/img405/4083/graph2g.png
$50 mill / 36 = 1.39 million
$50 mill / 34 = 1.47 million