Teeqoz said:
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. |
Lets not forget that GTS also took 4 years to make. Do you think the Devs didn't get paid for those 4 years until release? The games revenue will be high because its being basically given out to customers. Has the game made up all its expenses and 4 years of development? That's a more interesting story. If it has than GTS would not have cost much to make.