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Forums - Sony Discussion - Heavy Rain cost €16.7 million to make and made Sony "more than €100 million"

SnakeDrake on 19 April 2013
Ail said:
Proof that being in the industry does not necessary means you know what you are talking about....

Publisher gets roughly 50% of retail sales cost.
So if the game sold 2 million copies and each copy sold for 50 euros ( close to the reality if you average us and euro price of each copy)., the publisher got in the end 50 million euros, not 100 millions......

So the rest goes to the developer?



 

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crissindahouse on 19 April 2013
ethomaz said:
Suck great game... deserved.

funny mistake^^ i believe you meant such



italo244 on 19 April 2013

Sony could have profited 200 milions... Ya know, 2nd hand games hurt market a lot and companies arent gettin enough mony. gibe moni plox



ethomaz on 19 April 2013
crissindahouse said:
ethomaz said:
Suck great game... deserved.

funny mistake^^ i believe you meant such


lol yeap

crissindahouse on 19 April 2013
pezus said:
 

It didn't return 100m...it returned "over 100m", which could mean anything from 101m-149m as far as I'm concerned

But yes, they spent 40m and managed to profit more than 60m. This is one of those games that, according to some people, Sony shouldn't be making

but it's only revenue not money sony got, that should be pretty clear. they never made so much profit with that and no other company will.



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Barozi on 19 April 2013
Ail said:
Proof that being in the industry does not necessary means you know what you are talking about....

Publisher gets roughly 50% of retail sales cost.
So if the game sold 2 million copies and each copy sold for 50 euros ( close to the reality if you average us and euro price of each copy)., the publisher got in the end 50 million euros, not 100 millions......

yeah something like that.

Using the good old anatomy of a $60 game source, Sony gets 57% of the caused revenue. But the average cost of the game must definitely be lower than 50€.
100m € (I know they said "more than") / 2.5m units shipped = 40€ per game. Sounds a bit more likely, so let's take 45€ as an average.

Sony gets 25,7€ from the revenue, so 25,7€*2.5m units = 64m €
deducting development and marketing costs (are they guessed?), that leaves Sony with a profit of (at least) ~24m €. Since the writer of the article already included distribution costs within the marketing costs the profits should be closer to 30m €.

However I do not know if (European) VAT is included in the revenue. I included it for the average price of the game, so there might be a mistake.



Bonus: Sales needed to break even: 1.56m

Overall good profit.




crissindahouse on 19 April 2013
pezus said:
crissindahouse said:
pezus said:
 

It didn't return 100m...it returned "over 100m", which could mean anything from 101m-149m as far as I'm concerned

But yes, they spent 40m and managed to profit more than 60m. This is one of those games that, according to some people, Sony shouldn't be making

but it's only revenue not money sony got, that should be pretty clear. they never made so much profit with that and neither will another company.

I know, I said it profited more than 60m and not 100m. It did "return" over 100m though, after the 40m was spent.

60m profit is 60m profit. Didn't Tomb Raider even lose money for Square Enix? 

but it probably didn't profit 60m and even if, not only for sony since sony doesn't get the whole money of every sold copy. and if you use the whole revenue you also have to take the expenses of retailers and so on in account and not only development + marketing. if a retailer made 15 bucks per sold copy he didn't make 15 bucks profit, otherwise every retailer would be damn rich.

sony made maybe 20m euro profit with the highly reduced price of the units they sold the years after release.



Munkeh111 on 19 April 2013
Augen said:
So, some dumbed down math here for me.

It sold ~2 million copies
It cost 16.7 to produce and 23.3 to market; total being 40 million Euros
It made more than 100 million Euros
Thus, a profit of at least 60 million Euros on selling ~2 million copies

Stories like this make me wonder how other games struggle to make money in similar situations. This model seems to be very attainable, if this game sold half as much as it did it still would have been profitable, correct? Why do so many developers and publishers struggle nowadays if a million units sold could make money on an expensive title? I am guessing I am missing something here.

To me, the numbers don't add up. The game would have generated around 100m revenue, but not just for Sony. I think his figures must be off

The impressive thing is the 17m development cost. With all the acting required, you would have expected it to be larger. ND have said that U1&2 cost $20m to make, so the question is, why don't other developers make games for those costs, especially when you consider how good all those games look.

I think for the industry to remain healthy, game budgets can't really exceed $20m in most cases, which means 1-2m to break even which seems fine for a multiplatform game.

I would also like to point out that if other people did this, it wouldn't make any money. HR would not have sold much if it wasn't Sony published I don't think



Ail on 19 April 2013
SnakeDrake said:
Ail said:
Proof that being in the industry does not necessary means you know what you are talking about....

Publisher gets roughly 50% of retail sales cost.
So if the game sold 2 million copies and each copy sold for 50 euros ( close to the reality if you average us and euro price of each copy)., the publisher got in the end 50 million euros, not 100 millions......

So the rest goes to the developer?


The rest goes to retailer and distribution channel...

it's pretty standard for most of the stuff sold at retailers these days.

You buy a hardcover for 25$, the publisher gets 12.50$.

You buy a comic book for 3.99$, the publisher gets 1.90$.

 

The main areas where it isn't 50% is stuff like cars ( where the car seller gets less, but he can make money on the side with used car and servicin) and cloths where it is even more ( because there is a lot of unsold products that have to be sold at very low price)



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

Mazty on 19 April 2013

Great news. Sony seem to acknowledge this with the PS4 conference making a big scene of new IP's, indie games and future ideas from Quantic Dreams. Hopefully gaming can be resurrected from this quagmire of tired ideas.