in my place it's named "long-term investment".......

FishyJoe said: robjoh said: FishyJoe said: You have a LOT to learn how much profit is made from a retail game sale. Do some research before you spout numbers or it makes you sound stupid. That was unnecessery, especially against a mod if you disagre, start with explaining if they don't listen ignore. @roadkiller If you sell 4 million games for 50 USD you got 200 million in total revenue. You have to remove mayby 10-20 USD for retail and so on. Then you have cost for marketing and so on. If it is sonys report that indicates that they are taking a loss, GoW2 should be a part of the equation simple put that they own that game.   It took me two minutes to do this research. Why Gears of War cost $60 http://www.forbes.com/2006/12/19/ps3-xbox360-costs-tech-cx_rr_game06_1219expensivegames.html Art/Design: 25% (about $15) Programming And Engineering: 20% (about $12) Retail: 20% ($12) Console Owner Fee: 11.5% (about $7) Marketing: 7% (about $4) Market Development Fund: 5% (about $3) Manufacturing Costs, Packaging: 5% (about $3) Licensing: 5% (about $3) Publisher profit: 1.5% (about $1) Distributor: 1.5% (about $1) Corporate Costs (quantitative analysis, management overhead): 0.3% (about 20 cents) Hardware development costs: 0.05% (less than 3 cents)

You know I was gunna say something about the comment "Do some research before posting because it makes you look dumb" or something like that but im not gunna. Yes I should have researched first but then again I did say "I dunno im sort of confused."  Plus when I said GoW2 I didnt say Gears of War. I dont think Gears 2 is even confirmed let alone out. Anyways once more PS3's are bought there profits will be going up.

roadkillers - God of War2 was a lower budget game than the original. (mainly because they used the same engine, assets, and other stuff)

RolStoppable - Why does everyone say that sony requires market domination for profit? They seem to be going the nintendo way. Sell 1st party games. Are you saying nintendo will fail unless they dominate the market? 

Nintendo makes a profit on every console sold though.

they also don't need to sell 500,000 copies of each to make a profit either.

First off. I expect sony to turn a profit in 2008.

Second. Sony is following nintendos way, in going 1st party. That costs ALOT of money to create 10-20 first party games. Do the math. Add those together. That's like 200-400million in development costs. That is on the sony losses, as those games are not yet out. 

Couldnt have said it better.

This means that 0 of their bigass 1st party games had been released. 

roadkillers said: FishyJoe said: robjoh said: FishyJoe said: You have a LOT to learn how much profit is made from a retail game sale. Do some research before you spout numbers or it makes you sound stupid. That was unnecessery, especially against a mod if you disagre, start with explaining if they don't listen ignore. @roadkiller If you sell 4 million games for 50 USD you got 200 million in total revenue. You have to remove mayby 10-20 USD for retail and so on. Then you have cost for marketing and so on. If it is sonys report that indicates that they are taking a loss, GoW2 should be a part of the equation simple put that they own that game.   It took me two minutes to do this research. Why Gears of War cost $60 http://www.forbes.com/2006/12/19/ps3-xbox360-costs-tech-cx_rr_game06_1219expensivegames.html Art/Design: 25% (about $15) Programming And Engineering: 20% (about $12) Retail: 20% ($12) Console Owner Fee: 11.5% (about $7) Marketing: 7% (about $4) Market Development Fund: 5% (about $3) Manufacturing Costs, Packaging: 5% (about $3) Licensing: 5% (about $3) Publisher profit: 1.5% (about $1) Distributor: 1.5% (about $1) Corporate Costs (quantitative analysis, management overhead): 0.3% (about 20 cents) Hardware development costs: 0.05% (less than 3 cents) You know I was gunna say something about the comment "Do some research before posting because it makes you look dumb" or something like that but im not gunna. Yes I should have researched first but then again I did say "I dunno im sort of confused." Plus when I said GoW2 I didnt say Gears of War. I dont think Gears 2 is even confirmed let alone out. Anyways once more PS3's are bought there profits will be going up.

This is an example of revenue distribution. I didn't confuse Gear of War with God of War 2. It was only to show that the amount of profit is only a small fraction of the retail price of any game. Your original post was way, way, way off in the amount of profit that is generated for a given title.

Sony keeps getting it's loss estimates incorrect, so there must be a lot they don't know. Their Jan 07 loss estimate is 250% of their April 06 estimate. That's a billion dollar plus miscalculation.