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Forums - Gaming Discussion - Shovel Knight profit analysis

That's actually quite interesting. Though couldn't you have just taken the kickstarter amount into consideration and built from there?



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sterner said:

I thought it was discussed long ago already. You forgot to mention that the game was heavily promoted by nintendo, generated 2/3 of revenue on nintendo platforms, so its far from typical indie. Actually worth of marketing efforts from nintendo may far exceed the official budget, so it may be like this - 720k development budget, 5kk *hidden* PR budget from nintendo, 4.5kk revenue. Also most copies are probably from sales, so lower the real revenue. Reminds me of Infinity Blade which is most profitable Epic game, with Apple doing all the PR, yeah.

I'm glad that their efforts and crunching paid-off, but Shovel Knight made me give up on indie games actually. Given the nice kickstarter, nintendo support, competent developer, and the result? Nice 16bit-era game with 8-bit graphics. I wonder if any indie dev will ever be able to make a game of original Resident Evil caliber at least.



nintendo didnt buy a lot of ads if any, they just placed the game well in the store and helped by promoting the game over the cheap nintendo channels like directs and youtube contacts. it was a very clever promotion campaign, not a very costly.

Clyde32 said:
That's actually quite interesting. Though couldn't you have just taken the kickstarter amount into consideration and built from there?

Why? The people who backed them on Kickstarter still paid for the game. The average person donated $20 for this campaign. So the profit should be slightly higher than my numbers suggest, but it doesn't really matter that much.

Around 15k people backed this on Kickstarter:

15.000 * 20 = 300.000

These people got a "free" copy of the game.

That means at least 285k people bought the game since 6 December:

285.000 * 15 = 4.275.000

4.275.000 + 300.000 = 4.575.000

4.575.000 - 408.498 = 4.166.502

This means the profit was actually $4.166.502.

So each developer earned $28.934 per month during the 2 year development cycle (not incudling monthly paychecks). 



Samus Aran said:
Clyde32 said:
That's actually quite interesting. Though couldn't you have just taken the kickstarter amount into consideration and built from there?

Why? The people who backed them on Kickstarter still paid for the game. The average person donated $20 for this campaign. So the profit should be slightly higher than my numbers suggest, but it doesn't really matter that much.

Around 15k people backed this on Kickstarter:

15.000 * 20 = 300.000

These people got a "free" copy of the game.

That means at least 285k people bought the game since 6 December:

285.000 * 15 = 4.275.000

4.275.000 - 720.000 = 3.555.000

This means the profit was actually $3.555.000.

So each developer earned $24.687,5 per month during the 2 year development cycle (not incudling monthly paychecks). 



well, according to the blog, they didnt get payed for some months^^ and nintendo spend some money on pr not much, but it was featured in a direct an supported in other places it was worth it i guess, they have now good relationships to a competent studio with enough money to ake 2 more games.

cycycychris said:
Samus Aran said:
Clyde32 said:
That's actually quite interesting. Though couldn't you have just taken the kickstarter amount into consideration and built from there?

Why? The people who backed them on Kickstarter still paid for the game. The average person donated $20 for this campaign. So the profit should be slightly higher than my numbers suggest, but it doesn't really matter that much.

Around 15k people backed this on Kickstarter:

15.000 * 20 = 300.000

These people got a "free" copy of the game.

That means at least 285k people bought the game since 6 December:

285.000 * 15 = 4.275.000

4.275.000 - 720.000 = 3.555.000

This means the profit was actually $3.555.000.

So each developer earned $24.687,5 per month during the 2 year development cycle (not incudling monthly paychecks). 

Don't forget that Nintendo takes about 30% (not real amount, NDA doesn't allow people to say, just my guess). They also might have to pay the people who they used there engine some amount. for example, unreal engine 4 takes 10% of your money made from your game..

Yeah, I forgot about royalties, but I don't how high they are. 30% seems too high though! 



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sterner said:

I wonder if any indie dev will ever be able to make a game of original Resident Evil caliber at least.

Whenever people say things like this I seriously wonder what year they're living in. Ever hear of Amnesia? The Vanishing of Ethan Carter? Sir, You Are Being Hunted? Ghost of a Tale? Volume? The Witness?



"300k copies across platforms. This means that Shovel Knight generated a revenue of $4.500.000. So as of 6 December Shovel Knight has generated a profit of $3.780.000!"

So 300k at 15 dollars? What about the fees then? All those platforms get a cut because you're selling your stuff on their platform. Then there's taxes and shit.

300k is probably enough for a profit anyways, especially for a small company, but it is faaaaaar from 3.8M o.o

 

*edit* lolol I was too slow, my point was already taken :P



Samus Aran said:

Yeah, I forgot about royalties, but I don't how high they are. 30% seems too high though!

30% should be about right. That's the standard on iTunes, and the developer of Gunman Clive says it's about the same on eShop and elsewhere.



Samus Aran said:

Yacht Club Games consists out of 6 people. 144/6 = 24 months, i.e. Shovel Knight had a development cycle of 2 years. Now how much did Shovel Knight cost to develop? This is a simple calculation:

5000 * 144 = 720.000

So the game had a development budget of $720.000.

Yacht Club Games announced on 6 December that the game sold over 300k copies across platforms. This means that Shovel Knight generated a revenue of $4.500.000. So as of 6 December Shovel Knight has generated a profit of $3.780.000!

If the profit was to be dived equally between all 6 members that would mean each person has earned $26.250 per month during the 2 year development cycle (not including their monthly paycheck). 

One third of the revenue will go to Steam or Nintendo, so the revenue of YachtClubGames of 300k copies will be around $3.000.000, not $4.500.000 and the profit as of 6th December should be around of $2.3 million (before taxes), not $3.8 million.



Conina said:
Samus Aran said:

Yacht Club Games consists out of 6 people. 144/6 = 24 months, i.e. Shovel Knight had a development cycle of 2 years. Now how much did Shovel Knight cost to develop? This is a simple calculation:

5000 * 144 = 720.000

So the game had a development budget of $720.000.

Yacht Club Games announced on 6 December that the game sold over 300k copies across platforms. This means that Shovel Knight generated a revenue of $4.500.000. So as of 6 December Shovel Knight has generated a profit of $3.780.000!

If the profit was to be dived equally between all 6 members that would mean each person has earned $26.250 per month during the 2 year development cycle (not including their monthly paycheck). 

One third of the revenue will go to Steam or Nintendo, so the revenue of YachtClubGames of 300k copies will be around $3.000.000, not $4.500.000 and the profit as of 6th December should be around of $2.3 million (before taxes), not $3.8 million.

Do you have a source for that? 30% is pretty high, that's almost akin to stealing. 

I'll redo the calculations only if you provide me a good source. I currently have a source that claims royalties are around 10% for $60 retail games. Maybe it is higher for steam/eshop only games? Like I said, I need a source.