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Forums - Sales Discussion - Capcom financial report FYE Mar 07

ioi said:

Main title sales for fiscal year ended March 31, 2007

http://ir.capcom.co.jp/english/data/pdf/fye2007.pdf

 

Lost Planet (360)  

90k Japan

810k North America

470k Europe 

 

Dead Rising (360)  

80k Japan

730k North America

410k Europe

 

Monster Hunter Freedom 2 (PSP)  

1,220k Japan


 

I can't wait for Larry to come in here and say "Lost Planet" lost money for Capcom



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Not bad..... Looks like Capcom will be going with a 360/Wii/DS/PSP lineup this year and next... The 360 with it's hardcore install base like to eat up these types of games. Also, good to see a PSP title over 1 mill!



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

is Lost Planet the one that had the 20 million marketing budget ? over all did it not cost 40 million (iam not sure about these numbers just remember they were big)

 

edit - yah it is found proof. 



Well here's a breakdown of potential sales and possible profits on Lost Planet: Total Sales: 1.37 million Units sold times Unit price in US$: 1,370,000 x $59.99= $82,186,300 in generated revenue. Cost to produce and market game: $40,000,000 Aprox. console fee per disc (payed to microsoft) 8$ x 1,370,000 = $10,960,000 Retailer Aprox profit per disc sold: $10 x 1,370,000 = $13,700,000 Total cost to market, produce and distribute game: $64,660,000 Best case scenario profit earned: $17,526,300 I guessed on the per disc cost payed to Microsoft as well as the retailers profit take number. I'm going to assume I was a little on the low side for both of these numbers, or I'm almost dead on for them. In the end Capcom would have made a profit, how much a profit depends.



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

Capcom themselves said they needed Lost Planet to sell 750k copies to break even on the game. I think it's safe to say that with 1.3m sold, they made a tidy little profit on it.




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DarkNight_DS said:
Well here's a breakdown of potential sales and possible profits on Lost Planet: Total Sales: 1.37 million Units sold times Unit price in US$: 1,370,000 x $59.99= $82,186,300 in generated revenue. Cost to produce and market game: $40,000,000 Aprox. console fee per disc (payed to microsoft) 8$ x 1,370,000 = $10,960,000 Retailer Aprox profit per disc sold: $10 x 1,370,000 = $13,700,000 Total cost to market, produce and distribute game: $64,660,000 Best case scenario profit earned: $17,526,300 I guessed on the per disc cost payed to Microsoft as well as the retailers profit take number. I'm going to assume I was a little on the low side for both of these numbers, or I'm almost dead on for them. In the end Capcom would have made a profit, how much a profit depends.

 Huge investment but the profits are pretty damn good.

 



Rocketpig: There is no way Capcom could have made money off of selling just 750k copies of Lost Planet, if the game cost $40,000,000 to make, their revenue would have been $44,992,500. Obviously Capcom needs to allow the retailers to turn a profit on the game and Microsoft won't allow you to make a game on their system without them charging you a disc fee. Microsoft may have wavered the fee (though very doubtful). So in the end, 750k copies would not have made Capcom back it's money but it most definitely made a profit at 1.37 million copies sold.



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

DarkNight_DS said:
Rocketpig: There is no way Capcom could have made money off of selling just 750k copies of Lost Planet, if the game cost $40,000,000 to make, their revenue would have been $44,992,500. Obviously Capcom needs to allow the retailers to turn a profit on the game and Microsoft won't allow you to make a game on their system without them charging you a disc fee. Microsoft may have wavered the fee (though very doubtful). So in the end, 750k copies would not have made Capcom back it's money but it most definitely made a profit at 1.37 million copies sold.

Well, that's the number Capcom gave so I'll go with that. They have no reason to lie about it. They know better than anyone exactly how much the game cost to make.

Anyway, it doesn't really matter. Wtih almost double that sold, they definitely made money.




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Blue3: Yes the profits turned out quite nicely for Capcom.  They must have been pretty scared though, putting up $40 million to market and sell a game is crazy.  Most games would never make that kind of investment back.  Luckily Capcom gambled well this time.  Hopefully they will think twice before they decide to gamble like that again.  It would have been disasterous for them if they had not made such a healthy profit off the game.  Also, is $17 million that healthy of a profit off a $40 million dollar game...  I don't know...  but it's a profit and that's all that matters.



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

Rocketpig:  Actually 750k makes sense if they were only talking about dev costs.  I'd be willing to bet they omitted the marketing costs as they probably didn't know at that time that they were going to spend another $20 million to market the game.



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.