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| sc94597 said: I strongly doubt it needs 4.5-5 million to break even. The $51 per copy estimate was already accounting for retail, manufacturing and transportation cuts. For first party titles Nintendo gets like 80% of the revenue from the sale. For digital it is closer to 100%. Assuming first three weeks sold mostly at $70 and $60 respectively. That would be about $56 per SW2 physical copy and $48 per SW1 physical copy, assuming Nintendo gets 80% of the revenue. But of course a significant share of the sales are digital, where they get near 100%. Third party games need to sell a lot more to meet a budget because the platform holder takes like a 30% of the revenue. But in this case Nintendo is also the platform holder. Also many games that break even are still disappointments and don't get sequels because publishers don't want to just break even, they want to make profits, so 2 million sales would be a disappointment for many $100 million budget games even if there is no loss. |
You're heavily overestimating the profit they get for each physical copy sold.
Retailers also typically take a 30% cut from physical games. So that takes a $70/$60 game down to $49/$42 even before taking into account the manufacturing and logistics costs. IGN Article.
4.5m-5m to break even may be too high, not sure how reliable he is, another tweet recently he put the budget at $100-$200 Million saying he didn't know exactly where in that range it was lol.
Though that would make the 1.5m copies sold posted in another thread also unreliable.
He did an interview with the Metroid Prime 2 producer about recouping dev costs which he's basing some of this on.
Last edited by Zippy6 - 22 hours ago
