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HappySqurriel said:
DMeisterJ said:

Linky?

I thought that was entirely false...

A game can generate 30 million in revenue and be profitable?


Come on, its the new math ...

$20 Million to develop
+$10 million to Market
=$30 Million total costs

$30 Million gross revenue
-$5 Million licencing fees
-$10 Million Retail and Shipping costs
=$15 Million Net revenue

-$15 Million profit!

Some devs were quoted saying that you needed at least 500k to break even on a game for the PS3/360.  Consider that higher budget games would need higher sales.  Also consider that the price of games drops significiantly.  For example, Halo 3 was an MS published game, and MS promised it all MS published games sold at $50 instead of $60.  But there were places you could find Halo 3 for $30 around Christmas time.  So not all sales were at $50.