| baloofarsan said: A lot of "ifs" in this calculation! $40 (retail price) 60% (share that Nintendo gets of retail price - seach for video game breakdown cost) 185,000 copies needed to make $4.4 millions |
Psst, you forgot a few things.
Retailer markup
Batch PO negotiation and brokerage
Disk production
Media cost
Packaging
Shipping charges and taxes
Localization costs
Licenses
Warehouse storage
Operation costs for disk, packaging andgeneral manufacturing
Secondly, the calculation I made was for the "average entry level" employee, assuming all employees were on that same average pay, and does not factor in higher pay, operating costs for the company, resource usage during the production time or outside charges for third party contributors, so even once they hit 4.4 million, they wont have broke even.
Try again.
