They spent 1 million pounds on UK advertising.
That would be 2 Million Dollars. Just for the UK.
Also american advertising is much much more expensive.
By your calculations they spent around 40 million total. Not counting distribution costs... or the VAT. Which is an inclusive tax.
So even if you got half of what the game cost in america you wouldn't get half of that thanks to the massive VAT price.
Also... you are massivly lowballing it.
I'd also say you(or rather he) is lowballing software margins. After all they make like nothing on hardware... Actually usually losing money when you count in the transportation of consoles.
From what i can figure out without paying for research matieral is that video games actually have have some of the highest markups outside of things like cables for stores. Budget games interestingly having more of a retail markup.
Last generation I believe retailers made around 17 dollars per 50 dollar game.
