Bodhesatva said:
I am adding in that extra cost, Kaz. That was the whole point of my post. If you don't sell many copies, then you don't make the extra development costs back. If you sell lots of copies, you do. Look at simple examples. Wii game: 10 million dev cost. If we assume each PS3/360 game gives 4 dollars extra per copy, then the following math holds: 1 million copies sold: The PS3/360 game makes 4 million dollars more than the Wii game. The PS3/360 game therefore "makes back" 4 million of the additional development cost. 2 million copies sold: 8 million dollars more than the equivalent Wii game. 2.5 million copies sold: 10 million dollars more than the equivalent Wii game. In this simplified model, a 10 million dollar Wii game and 20 million dollar PS3/360 game have made equivalent amounts of profit. Whatever the profit is is irrelevant; if it's 100 million dollars for the Wii, the PS3/360 version has made 100 million also, but it has done so by producing 10 million more revenue and costing 10 million more to make.
I'm not entirely sure where the cut off point is,of course, but I don't think there is any question that the mega-hit games on the PS3/360 make more money than the mega hit games for the Wii, even when you factor in development cost. |
No i'm talking about the fixed costs of production. It costs more to make and buy blu-ray discs..... etc.
That's part of the reason for the extra $10 as well. Of course this is a bigger deal for the PS3. It's still something to take into consideration. Each platform has different fixed costs of production.
What i'm saying is that i believe none of that extra $10 actually makes it back to the developers and they make the same margin (or VERY close) per copy as they would a Wii game... to where even 5 million copies wouldn't make much difference.
That everything is getting eaten up by the publisher and others basically.
