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

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.

Now, just think if the game had a normal budget.



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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.

Because breaking even or small profit isnt the goal, especially on pillar franchises.



Xxain 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.

Now, just think if the game had a normal budget.


It wouldn't and won't as long as Kojima is the team lead. 



 

Xxain said:

Because breaking even or small profit isnt the goal, especially on pillar franchises.


This exactly. Nobody wants to risk $80 million for a chance to break even.



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While it is a huge budget, you fellas are ignoring inflation. Also, throwing games like Witcher 3 that, while a legendary game, was developed in Poland, where costs are much lower than in Japan.

I don't see Kojima as the problem here. I still think it's Konami. If EVERY game Konami developed had that budget then yes, we'd have a real problem here. But Konami has tons of other games and businesses were they don't invest a lot and turn out lots of profits.

That's why Square Enix's new business idea of making a number of small games that turn out a big profit to have resources for big, epic games makes a lot of sense for a "game creator". But Konami doesn't see itself as a game creator anymore, they don't have love for creating anymore. They only want huge profits all the time, without effort, risk or investment.



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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.

You expect 5 million sales day one? While I think MGSV can be profitable even with this budget, I don't think day one.



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ghost_of_fazz said:
While it is a huge budget, you fellas are ignoring inflation. Also, throwing games like Witcher 3 that, while a legendary game, was developed in Poland, where costs are much lower than in Japan.

I don't see Kojima as the problem here. I still think it's Konami. If EVERY game Konami developed had that budget then yes, we'd have a real problem here. But Konami has tons of other games and businesses were they don't invest a lot and turn out lots of profits.

That's why Square Enix's new business idea of making a number of small games that turn out a big profit to have resources for big, epic games makes a lot of sense for a "game creator". But Konami doesn't see itself as a game creator anymore, they don't have love for creating anymore. They only want huge profits all the time, without effort, risk or investment.

That is wrong.

Konami is not interested in big budget development. Think about it, MGS is the only AAA they've ever owned. Every other IP is B class or lower. They have never been known for big budget development and Its fine that konami doesn't care for that path.The idea that because they dont want to invest retardedly high budgets into a game doesn't mean they dont care. Ironically you use SE as an example, but remember they came from the retardedly high budget and what did it do to them? 



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.

I highly doubt they get retail more than $30 per copy. Typical breakdowns I saw were lower, even including Konamis share as publisher. That might be true for digital, but digital usually makes 10-20% of sales.



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Mnementh 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.

You expect 5 million sales day one? While I think MGSV can be profitable even with this budget, I don't think day one.


It would be about 3 million to break even (this is if the cost is only 80 million, which it isn't).



 

endy.G said:
ArchangelMadzz said:


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


huh?

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65$ includig sales taxes...


I always buy my games from amazon. If you go into a retailer video games are £50-£55



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