Research shows Video games help make you smarter, so why am I an idiot
Hrm... gotta love all the fuzzy numbers people are throwing around. Fact is, we don't know if it made money or not. What we know, is that they ESTIMATED the game budget at $60 million, late in 2009. The game was acknowledged to be in development for 5 years as of that time. So where can we go from here? Well, if we were to assume linear costs, the development cost at release will be $72 million, and this is before advertising is factored in.<BR><BR> So how much is made on a copy? Let's start at the $30 MSRP and work backwards. The retailer take is, on average, 20% of this price. So $24 is paid out to Sony. While Polyphony Digital is owned by Sony, that doesn't mean that this entire $24 went to PD. Sony has other divisions to balance the book with. They'll start at the licensing cost, which is estimated to be $10 per game, attributed to the gaming and network division. $14 goes on to PD, but this does not include things like printing and pressing costs, shipping costs, retailer return costs, defective, etc. $10 each might be a fair assessment for PD's books. And of course, these numbers are net, pre-tax. So a business tax will be assessed at the end of the year on this profit.<BR><BR> We also have the issue of revenue from bundled games. With PD being owned by Sony, I would guess that Sony used the software, and absorbed the pressing costs into gaming for marketting and promotional purposes. Suffice to say, PD did not get $10 per copy on those games. Claiming they have is akin to saying that Nintendo was paid $40 for every copy of Wii Sports that sold. (And we all know how that's not true.)<BR><BR> In short, no, they've not profitted yet. They may, if they don't let the actual advertising budget spiral out of control. I would say that a fair number to assume for sales would again be 5 million (I'm not saying it will stop here, rather, that this is a safe number), and budget the advertising costs to allow the game to not lose with all costs together. We also get the issue of costs with the bundles again, making this even harder to estimate. Time will see; if handled well, they're fine. If they keep spending recklessly, then we might have another GTA4 money-loser on our hands. (GTA4 statement based on RockStar losing money in the release quarter of GTA4.)
-dunno001
-On a quest for the truly perfect game; I don't think it exists...
| mjk45 said: so know its fuzzy maths versus fuzzy bundles estimates. |
Nothing "fuzzy" on the latter, we know the actual bundle breakdown in Japan thanks to sales trackers. According to Famistu...
GT5P (unbundled) 238,578
GT5P Spec III (bundled) 295,174
jarrod said:
Nothing "fuzzy" on the latter, we know the actual bundle breakdown in Japan thanks to sales trackers. According to Famistu... GT5P (unbundled) 238,578 GT5P Spec III (bundled) 295,174 |
so japan is now indicative of the rest of the world when it comes to bundled unbundled and does sales trackers include DL and who do they track
Research shows Video games help make you smarter, so why am I an idiot
Boutros said:
Tell that to James Cameron. I wish he could have used the budget to something else than the special effects in Avatar. What a bad idea decision he made. |
Are you trying to be sarcastic? If not, I totally agree. I wish some of the time and resources for the special effects on Avatar would've been used to write a story that isn't a complete rehash of Dances With Wolves, which did this story a lot better anyway, and didn't feature characters that are complete stereotypes.
| Bristow9091 said: I don't get what some of you have been saying, that GT5:P couldn't have made enough money to cover the costs of GT5, I think it did, plus extras.
If the rumoured development cost was indeed $60m, and GT5:P has sold just under 5m, let's say 5m, they'd need to make $12 per copy in order to reach that, now, it is my understanding that first party developers would get more than $12 per copy sold, more than $20 sold infact, and even if the cost was much higher at $100m, selling 5m copies at $20 would cover the cost. The only thing they've got left to pay for using their own money that hasn't come from the sales of GT5:P would be the advertising costs. |
I also do not understand why people are even estimating it at $15 per game. A while back an article was posting saying that first party games bring SONY, MS or Nintendo $48 each if the game was $60.
http://gamrconnect.vgchartz.com/thread.php?id=106598
Going by that they must have gotten at least $25-28 per $40 sale and $15-18 after the price drop to $30, at a minimum.
At $25 a piece 4.95M sales (PD statement for shipped and Digital) brings you to ~$124M and at $20 a piece it brings you to $99M.
They easily profited.
iPhone = Great gaming device. Don't agree? Who cares, because you're wrong.
Currently playing:
Final Fantasy VI (iOS), Final Fantasy: Record Keeper (iOS) & Dragon Quest V (iOS)

![]()
| dtewi said: @Solidsnake Calm down. |
abt wat?????????
mjk45 said:
so japan is now indicative of the rest of the world when it comes to bundled unbundled and does sales trackers include DL and who do they track |
So, where did I say that? All I said was we can't put a per copy return figure on sales universally due to bundling (which was worldwide), and the one region we had specific insight into those figures was Japan (which heavily favored free bundled copies). Nothing more, nothing less.
Famitsu samples 70% of Japanese retail iirc, and extrapolates the rest. That's more than NPD even I believe.
Many people didn't bought GT PROLOGUE but will buy GT5 and that includes me.
http://gamrconnect.vgchartz.com/thread.php?id=130023&page=1# Official Playstation Vita Thread! Come in and join!!!
| kivi95 said: Many people didn't bought GT PROLOGUE but will buy GT5 and that includes me. |
And me.