Azzanation said:
At $29 I don't believe its doing much else. Revenue is one thing, making profit is another. Sure its pretty easy getting GTS in the homes of gamers when bundled with controller deals and sold at the same cost as Indy games. How much did the game cost Sony to make is another big question. Judging from the quality of the game I don't think it would have been cheap to make. The expenses is something I would much rather look at than its revenue in this case. |
Development costs don't scale with units sold. Profit does. Development is a fixed cost. Hence why profit has a huge profit margin once development costs are covered: because all revenue after that is nearly pure profit. That's why for instance Microsoft's profit margin is so insanely high.
Of the 29$ Sony sold for it, they disc+cover costs tops 2$. Then the retailer cut is a maximum of 10$ (and that's being generous to the retailers). So that's still 18$ per copy that goes directly to Sony.
