darthdevidem01 said:
1. 5 Million copies were SHIPPED at launch (click for proof)...retailers have to take them at full price as they were all shipped at launch itself.
2. MGS4 needed 1 Million sold on Day 1 to make a profit (click for proof)...FFXIII definetely did not cost/market 5 times more than MGS4.
3. Even if it needed 5 Million to break even, it did that 11 months ago since it shipped 5 Million at launch, 5.5 Million thereafter and as of now 6.5 Million is likely shipped.
4. It is *highly* likely Microsoft took up the bulk of advertising costs in the West, basically all the UK/US ads that aired that showed it was only for 360. Microsoft funded those adverts so SE doesn't need to worry about those costs. SE probably just had to pay for the 1 US commercial that actually had the PS3 version shown too and Japanese marketing costs, the sum total wouldn't be much.
So no FF13 hasn't just started to turn a profit, it probably did so thanks to the Japanese launch itself. Worst case scenario it turned a profit 11 months ago, not just started to turn a profit now. I don't see the need to put a negative spin on things.
And FF12 cost $48 Million not $74 Million...FFXIII was ruomored to have a 50% higher budget giving us around $70 - $80 Million. (click for proof)
Edit:
And for arguments sake if 3.1 Million copies were needed to break even at full price...then I don't know why you'd say all the copies won't be sold at full price since worldwide week 1 sales of FF13 combined PS360 are 3.2 Million. But thats irrelevant as 5 Million were shipped to retailers in launch week. (1.8 to Japan...the remanining 3.2 between NA/EU).
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I'm not going to dispute that FF13 didn't make a profit, regretfully, I believe it has. However, there is some skew in how you're presenting your data.
1. The 5 million shipped per that article is at western launch. This includes replenishment shipments in Japan. However, by this point, the price on FF13 had already plummeted in Japan, meaning that the reships were sold for less. In addition, yes, there was a healthy first shipment in Japan. And yes, S-E can count it as sold. But, just like us buying from a store, unused (or, in the store's case, unsold) items can be returned. Faced with the potential of massive returns, S-E gave retailers a partial credit on their unsold stock to allow them to lower the price. Some were probably still sold at a retailer loss (the infamous receipt showing a new copy of FF13 sold for ¥980), but it is not a given that S-E kept full price on the copies.
2. The article mentions that they needed to sell 1 million day one to "help" with the costs. This does not mean that 1 million is the profit mark; rather, they may have used legs on the series to bring it to profit. Failure to sell a lot early in would put them in a case like I mentioned with the prior paragraph- having to give partial refunds due to an overstuffed channel, which eats into profitability. Selling through the 1 million means they don't have to worry about them being returned.
3. But not all copies are at full price, so it's hard to tell. Even in the US, land of slow-to-drop prices (we start the cheapest for games, but we're also last to see a price drop), FF13 has dropped to a retail of $40, and has had multiple promotions selling it as cheap as $20 new. And there's still the potential liability of unsold retailer copies coming back.
4 (and post). Yes, MS did take up a fair bit of the advertising cost in the west. However, I would guess that the agreement was to share in some of the costs- S-E still had to make the footage for the commercial (since MS doesn't have this data themselves to work with), and, for spinning the game to their system, MS would pay for the airtime. This would save part of the advertising budget for FF13. It is also noted, however, that the $48 million figure for FF12 acknowledges that it does NOT include the marketing, thus raising the costs on 12. (I don't have exact marketing costs, so I'm not going to say it was in fact $X.) The 1.5x multiplier for FF13 is also not cemented, but it's also not clear as to whether this was purely for development costs ($72m on development before marketing), 50% more after marketing, or what.