Nem said:
I'm getting really tired of that skewed slicing of the game price to make them look all innocent like.
That is full of lies. First the marketing budget varies from title to title. Second, the developer gets nothing. They have been payed by the publisher already for their work hours. The ammount varies so it can't be that slice like it shows there. Retailers often make cut's to the price at their own risk.
What happens in reality is this:
Royaties are payed to the console manufacturers. I don't know if this is just one license or how/if it scales per print or plafonds of prints.
Retailers buy the copies for a certain price. They add their cut on top of it.Publishers receive the whole money of the copies bought by the retailer. Wether they actually sell doesn't affect them immediatly. Taking into account the values in the picture, the publisher gets 48 dollars per copy. They will get that for every copy sold to the retailer in the bulk. If copies don't sell, the deficit goes to the retailer and not the publisher. The only thing is next time the retailer will place smaller orders.
Once the game "breaks even" the developer share no longer can even be a thing, nor the marketing budget. At wich point they really get max money for every copy sold.
If its a digital copy, many of the costs of manufacturing are completely negated. I don't know how much the digital retailers charge in comparison to physical ones. But it can't be as much.
So, no publishers aren't poor sods that only make 18 dollars per copy sold. That is propaganda. The reason why they push pre-order is because they get a bigger bulk order from the retailers. Once they do, they already "sold" all those copies and if they actually don't the retailers are there to take the brunt of it.
The retailers are actually the poor guys here.
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