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Kasz216 on 14 June 2008
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Bodhesatva said:
Viper1 said:
Bodhesatva said:
Viper1 said:
Hey Bod, you're calculating retail cost, not wholesale.

Right? As I said, 4-5 of the extra 10 retail dollars go to the producers. Can you explain what's wrong with that?


Because retailers don't buy the game at $60.00, they pay approximately $48.00 from the distributor (Jack of all Games, D&H Distributing, Ingram Entertainment, Mecca electronics, etc...) who pay even less from the publisher. ~$40.00 depending on their annual unit contract.

 

Now you want to redo your math?


That's exactly what I did, we're just looking at this from different angles.

Of the 60 total dollars, retailers get a share, developers get a share, publishers get a share, console manufacturer gets a share.

Both the Wii and Ps3/360 suffer from this problem, the difference is that with Ps3/360 games, retailers get an additional 2-3 dollars, the console manufacturer gets an additional 2-3 dollars, which leaves an additional 4-5 dollars for the publisher/developer, totaling 10 extra dollars.

Let me put it more generally: there are 10 dollars more to go around with each game sold on the PS3/360. Some of that 10 dollars go to retail, some to the console manufacturer, and whatever is "extra money" for the developer/publisher. That extra money adds up when you're talking about large amounts of sales.


The question is... are you sure that the developer is even getting any piece of that larger price...  You've also got to add in the extra expenses that HD console development can bring shipping and production wise.