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Forums - Gaming Discussion - MGSV costs 80 million to develop.

ArchangelMadzz on 03 August 2015
starcraft said:
ArchangelMadzz said:
starcraft said:
bananaking21 said:
while 80 million certainly is A LOT. MGSV will make those back in just a few hours of sales and will easily be profitable day one.

Optimistically assuming that Konami is going to get $30 per copy sold (early on at least) you're looking at a requirement to sell nearly 3 million copies to make a single dollar off the game (2.66 million at that revenue-per-game).

Then there is the marketing budget, which itself could easily be a few tens of millions of dollers. Meaning it will have to sell maybe 4.5- 5 million copies at full price prior to making a dollar's profit (letalone be a good investment return on upwards of $100 million).

It may well make a profit. It may well make a profit sufficient to call it 'worth it.'

It is unlikely to make a profit day one.

Konami will get more than 30 per sale. And especially digital sales they get a very large percentage.

Obviously I am only guesstimating. But for retail sales in the US, it'd be very surprising if they got much more than $30.

And outside of the US most countries don't charge full price for a game, you see discounting from day one (which becomes increasingly dramatic very quickly).

I don't think a $30 average per sale for those first couple of weeks is unrealistic.


Games are probably cheapest in the USA. MGSV will go on sale for about 80$+ in the UK.



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MoHasanie on 03 August 2015

Seems kind of expensive but maybe it includes marketing.



    

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DonFerrari on 03 August 2015

That is What you get by throwing good money on silly things like open world.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

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Boutros on 03 August 2015

That's pretty much expected. And they already recouped a lot of that with Ground Zeroes so it's pretty much certain to make a profit which makes you wonder what was really going on at Konami. Because there shouldn't be a problem if in the end it's profitable. Also for all we know it includes the development of the Fox Engine which is also used for PES.



Eddie_Raja on 03 August 2015

Considering MGS4 cost $55 million this is actually very reasonable considering it is on 5 platforms instead of 1, and it is going to be MUCH bigger in scope.

With its larger market it should easily sell 10 million+. Again, Konami is retarded for complaining.



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[Prediction Made 11/5/2009]

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I gauruntee the PS5 comes out after only 5-6 years after the launch of the PS4.

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KingdomHeartsFan on 03 August 2015

Easy to understand, the built the fox engine for this game.



Guitarguy on 03 August 2015
Boutros said:

That's pretty much expected. And they already recouped a lot of that with Ground Zeroes so it's pretty much certain to make a profit which makes you wonder what was really going on at Konami. Because there shouldn't be a problem if in the end it's profitable. Also for all we know it includes the development of the Fox Engine which is also used for PES.


PES wasn't exactly a killer seller though. This is not an Unreal engine we are talking about here where every developer and their dog are throwing money at Konami to use their engine, $80 million dollars is INSANE for a video game no matter how you slice it, especially a Japanese video game where they tend to be more conservative. GTAV cost something like $265 million but has sold something like 50 million copies across 5 platforms and was a staggered, cross generation release. Then you factor in the PC version. Rockstar essentially(and knowingly) double(triple)-dipped, much like studios putting out 'directors cuts' of DVDs/Blu-Rays 6-12 months after a standard release. MGSV, not matter how good it is, won't sell half that amount. It just does not have that universal appeal to gamers and casuals.

PS3/360 software sales are fleeting. MGSV will sell respectably enough on X1 whilst the PC version will probably be pirated by a significant amount of users. The PS4 is where most of its sales will come from but I think Konami won't like having to try and sell 10 million units just to see a decent return. $80 million dollars is far too much of a risk to justify just a decent return... My opinion anyway. Im sure the game will rock. Day one for me whatever happens.



ethomaz on 03 August 2015

The Witcher 3 costs $67m between game and marketing.

I don't see the big deal here.



KingdomHeartsFan on 03 August 2015
Guitarguy said:
Boutros said:

That's pretty much expected. And they already recouped a lot of that with Ground Zeroes so it's pretty much certain to make a profit which makes you wonder what was really going on at Konami. Because there shouldn't be a problem if in the end it's profitable. Also for all we know it includes the development of the Fox Engine which is also used for PES.


PES wasn't exactly a killer seller though. This is not an Unreal engine we are talking about here where every developer and their dog are throwing money at Konami to use their engine, $80 million dollars is INSANE for a video game no matter how you slice it, especially a Japanese video game where they tend to be more conservative. GTAV cost something like $265 million but has sold something like 50 million copies across 5 platforms and was a staggered, cross generation release. Then you factor in the PC version. Rockstar essentially(and knowingly) double(triple)-dipped, much like studios putting out 'directors cuts' of DVDs/Blu-Rays 6-12 months after a standard release. MGSV, not matter how good it is, won't sell half that amount. It just does not have that universal appeal to gamers and casuals.

PS3/360 software sales are fleeting. MGSV will sell respectably enough on X1 whilst the PC version will probably be pirated by a significant amount of users. The PS4 is where most of its sales will come from but I think Konami won't like having to try and sell 10 million units just to see a decent return. $80 million dollars is far too much of a risk to justify just a decent return... My opinion anyway. Im sure the game will rock. Day one for me whatever happens.

If they sell 10m copies Konami will make over $250m.  They get roughly $27 cut from each game sold, they will easily turn profit.



Guitarguy on 03 August 2015
KingdomHeartsFan said:
Guitarguy said:


PES wasn't exactly a killer seller though. This is not an Unreal engine we are talking about here where every developer and their dog are throwing money at Konami to use their engine, $80 million dollars is INSANE for a video game no matter how you slice it, especially a Japanese video game where they tend to be more conservative. GTAV cost something like $265 million but has sold something like 50 million copies across 5 platforms and was a staggered, cross generation release. Then you factor in the PC version. Rockstar essentially(and knowingly) double(triple)-dipped, much like studios putting out 'directors cuts' of DVDs/Blu-Rays 6-12 months after a standard release. MGSV, not matter how good it is, won't sell half that amount. It just does not have that universal appeal to gamers and casuals.

PS3/360 software sales are fleeting. MGSV will sell respectably enough on X1 whilst the PC version will probably be pirated by a significant amount of users. The PS4 is where most of its sales will come from but I think Konami won't like having to try and sell 10 million units just to see a decent return. $80 million dollars is far too much of a risk to justify just a decent return... My opinion anyway. Im sure the game will rock. Day one for me whatever happens.

If they sell 10m copies Konami will make over $250m.  They get roughly $27 cut from each game sold, they will easily turn profit.


The $27 per unit sold is only when it is sold at full retail price. We know that as the price of the game declines over time, the profit also diminishes. If it sells 10 million units at full RRP I will eat my hat lol. I'm just trying to see things from the other side of the coin.