yvanjean said:
Wow, stick to gaming your accounting make no sense. Huge difference between revenue and profit. If the game been in production for 5 years, the cost is much higher than initially expected.
$60 is the retail price. Most retail store have a 30% mark up. Nintendo would receive only $42-45 per copies sold. 5M * 43.5 = 217.5M Revenue. Now they have to pay for all costs incurred to get the game to customer. (Marketing, Production [5 years worth of costs], Physical Packaging, etc.) |
Nintendo said they need only 2m sold copies to make profit, so 2m cover development of game. Without that, we have left cost of marketing, package and retail stores, even with all that I think Nintendo have around $40 profit from $60 physical copy of game. Now we need to add digital sales, Nintendo digitaly sales are curently about 20-30% fo total sales, that 700k copies would sell whitout reatil, pacage and shiping costs, so that means more profit for digital games, that would raise average profit for those 3m sold games (including digital copies and without those first 2 that will cover development cost of game) around $45, and $45 * 3m = is $135m.
So yes, I little exaggerate when I said $150-200m for 5m sold copies of game, but 5m sales of game is lowest IMO this game would sell, so they can easy made around $200m clear profit with sold around 6-7m copies of games.
