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Kasz216 on 24 February 2008
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Ail said:
shio said:
DMeisterJ said:
So uncharted has sold 1.25 million copies * sixty bucks a copy, equals 75 million in revenue? I mean, I know some of that goes to the store and Sony, but it basically made profit, right?

So with all of those "ZOMG Killzone 2 costs 50 million" threads will be quenced, so long as it sells ~2 million copies? cool.

There's no way Uncharted made profit, even if it reached 2 million. You don't even know how much distribution, retailers, etc.. take away from the game's profits.

Usually a developer makes only $10 from each copy, and if you add more $10 from game's royalties to Sony, they only make that much, $20 per copy. And adding whatever additional costs they had such as advertisement, makes it either no profit or almost no profit. Either way, it counts as a failure.


Your maths are wrong.

 

Game sells for 60$, retailer keeps at most 25$ out of that( I have seen Best Buy drop the price of a game by 20$ for a week so they make at least that much per game).

Sony gets 10$.

Packaging/game manual probably like 2$.

23$ left for naughty Dog and their distributor ( the fact it's sony is separate from the Sony 10$ which is standard cut for Sony on any PS3 game).

My guess is naughty dog gets 18$ and the distributor 5$ at most.( the distributor doesn't take that many risks imo).

1.25 Million copies at 18$ they made a small profit.

In that case the distributor probably didn't make any profit and spent all their cash on advertising but it's sony so they get their 10$ too and it's their interest to have more ps3 games out..

 

 

 


Publishers actually take most of the proft. Because wihtout a distributor the developer can't get his product to the people. They also actually do take most of the risk.

Of course this varies based on what is negotiated and what is done for it. (Marketing budget etc.) This is different from your run of the mill distributor who does nothing outside of just printing the CDs and shipping them to the companies who buy them wholesale. Considering the deals some companies are given though... their cut would have to be substantially more then 5 dollars. Otherwise some of them would be selling at a loss to places like Wal-mart. 

That's why Square Enix refused to publish FF7 outside of Japan.

This is also why Steam is the wave of the future.