shikamaru317 said:
I hardly think that's true. Activision is one of the publishers that this strike is about, so let's use CoD as an example. Modern Warfare 2 had a budget of $250 million, $50 million of which was the production budget. Modern Warfare 2's revenue was over $1 billion. $1 billion - $250 million leaves $750 million. Where did that $750 million go? It didn't go to the developers, there's a few hundred of them which get paid about $70,000 a year on average ($70,000 times 300 developers is $21m as an example). It didn't go to the voice actors, they probably made even less from MW2 than the develoeprs did. It didn't go to the next CoD game, Black Ops 1, it's budget was approximately the same as MW2's. So where did it go? A hefty portion of it went to pay the bloated salaries of Activision executives like Bobby Kotick and Erik Hirshberg. The rest, who knows where it went, Activision probably squandered it on their other smaller developers, most of which have collapsed since MW2 released because their games flopped. |
A lot of it gone to taxes, other to retailers, other to cost of production/distribution and another good part to pay for projects that didn't meet the goals...
Only people with very little knowledge of any business think the margins are astronomical.

duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
http://gamrconnect.vgchartz.com/post.php?id=8808363
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"
http://gamrconnect.vgchartz.com/post.php?id=9008994
Azzanation: "PS5 wouldn't sold out at launch without scalpers."







