Barozi said:
zorg1000 said:
Barozi said:
I was never talking about $20 being the difference in profit. That was obviously revenue.
Since we use a set percentage for profit though, it's enough to talk about revenue. 20% higher revenue = 20% higher profit, 20% less revenue = 20% less profit.
Your example was:
$24 for each $60 game (WiiU) (= 40% of the WiiU game revenue)
$16 for each $40 game (3DS) (= 40% of the 3DS game revenue)
$8 difference each between the versions (or somewat close to that) (= 40% of the difference between the WiiU and 3DS revenue)
Obviously I didn't take into account all the regional price differences, but that would be too much work, for not that much better results.
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It's also considerably cheaper to develop games for 3DS compared to Wii U so 3DS games don't necessarily need to sell more than Wii U games to be profitable. For example let's say the average 3DS game costs $3 million to make while the average Wii U game costs $10 million, these are just random numbers by the way, I have no idea how much it costs to make games for 3DS/Wii U.
If Nintendo makes back $16 for 3DS games and $24 for Wii U games, they would need to sell 187,500 units of the 3DS game to break even and 417,000 units of the Wii U game to break even.
It's very possible that a 1 million selling 3DS is game is more profitable than a 1 million selling Wii U game despite making less back on each 3DS game because it has lower dev costs.
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That's obviously true if it was a question of developing for WiiU OR 3DS. In this case they did both, obviously the 3DS version was a bit cheaper but you can't really tell how much each of the versions cost to make since a lot of the work from one version is also found in the other.
Besides, Smash is a big seller. Dev costs won't change the outcome dramatically.
bolded: Using your example, look what happens when a game is not only selling the amount to break even, but 1,000,000 as you said:
WiiU $24 * 1,000,000 units - $10m dev cost = $14m profit
3DS $16 * 1,000,000 units - $3m dev cost = $13m profit
The bigger the game, the less important are the dev costs.
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Very good points, I was just trying to say more revenue doesn't necessary mean more profit tho.
