pezus said:
A_C_E said:
pezus said:
A_C_E said:
pezus said:
Lucas-Rio said:
The revenue generated by the game is the price*the number of sales (taxes and retailers cut included, like in movie business).
The game is 90$ in Europe (70€ = 90$) and 70$ in USA. Make the calcul with VGchartz numbers and it still is way above the 1 billon number.
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Lol, so what's with you saying revenue => shipped? You just proved yourself wrong. Because if it was shipped, over 1billion sales would reflect a much higher sales number than 17.5m (because Take-Two doesn't get $60 for each game).
The movie business reports ticket sales, just like Take-Two reported game sales to consumers. The shipments were likely 20m or more for the first week.
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Publisher's revenue is made from selling to the retailer/market, not the consumer. The store has to buy the games from Take-Two then its the stores job to sell it, not the other way around. Your movie business analogy didn't make any sense considering publishers don't know how many units were sold to consumers, only how many they sold to retail. The only thing the head corporation has 100% data on is how many units they shipped to the retailer. You learn something new every day. Your welcome.
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You didn't get my point, so let me ask you a question before I begin again:
How much does GTAV cost for the average retailer (buying from Take-Two).
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I don't know exactly but I've heard its almost break even which is why retailers like gamestop/eb games had to resort to used games in order to turn a profit.
Edit - After doing non indepth (simple) calculations, I've come with some numbers: If a game costs $60 and sold 17.5 million units then that equates to $1,050,000,000. That number is for the week. BUT! Take-Two stated that after 3 days they had already reached over a billion. Going by your logic (or my interpretation of your logic, to be fair), GTA 5 has only made about 50 million dollars in the last four days of the week. No. Just no.
The reason Take-Two stated that GTA 5 passed 1 billion dollars in 3 days was because they shipped that amount to retailers.
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1. The week reported by VGChartz included 5 days of GTAV sales, not 7
2. That "over 1B" includes digital sales
3. Prices are higher outside of the US, so the average price is higher than $60 => 17.5m units sold actually means more than $1.05B, plus it had digital as I said above.
Now, the reason I asked you how much the average retailer pays is this: They don't pay $60 per game, they pay less. I've heard $40 thrown around. They do make a profit on game sales. Now, if we assume they pay $40, maybe even $50 on average due to higher prices outside of USA, we can see that the shipments in 3 days would be over 20m units...
So, there's really no way to say that the 17.5m number is too high by saying Take-Two report shipped revenue...
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Ok...I had to go back and re-read the posts that started this whole thing because I never said 17.5 million is too high. So lets just clear that up. I do think GTA sold 17.5 million retail. I didn't realize you were defending the sales believe it or not, it just seemed to me like you thought that a company knows or states how many units were sold to consumer as opposed to shipped. Sorry about the mix up there.
As for the whole calcutlation thing, like I said "non indepth" simple calculations, as in not taking everything into consideration like the $160 special editions and whatnot. But 90%-95% of sales would be from retail and regular editions of the game so adding on about 75-125 million more dollars which doesn't quite add up if they already made 1 billion dollars after just 3 days.
As for how much a retailer makes off a videogame? It differs from chain to chain/store to store. Places like EB Games, Future Shop or Best Buy make pennies with new game software as well as consoles/hardware. It's the accesories and used games that run their business and how they keep operating. Some chains actually have place holder prices with certain publishers in which case they can get money back from the publisher if the publisher drops the MSRP of said game. That way the chain/store doesn't pay more than they sell.
