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Forums - Sales - splitting the profit

Obliterator1700 on 23 July 2008

My god I never knew this...very instresting am serious.



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chenguo4 on 23 July 2008

Disgustingly interesting.




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halogamer1989 on 23 July 2008

I wonder how much games will cost next gen? $70 new? $60 platinum hits? $50-55 near perfect used?



Aprisaiden on 23 July 2008
TheRealMafoo said:
Aprisaiden said:
That article seems wrong to me ...
Since Art work, programming, design, development of games is usually done by the developers...

For a $60 game id estimate:
-- $12 goes to SONY/ Microsoft / Nintendo
-- $18 goes to the retailer
-- $5 for manufacture / transport costs
-- $20 publisher
-- $ 5 developer (publishers will sometimes get this as well due to owning the developer or paying for the product to be made)

That is also an example of why 1st party games can get away with low sales -- since SONY/M$/Nintendo would get the $12 license fee + $20 publisher fee + $5 developer fee... allowing them make a lot more money or minimize costs...

** if anyone finds any flaws in my own assumptions for the break down of games cost please tell me where and what since if you have more accurate info id like to find it ...

 

Where did you get these number?

 

Hey their just estimates im pulling out of thin air -- what we know is that the cost is split between the devloper, publisher, console maker and manufacturer.

Since retailers don't make much money on consoles they must make their money on software. Thus id expect them to get a large chunk of the cost (they have costs aswell ...) -- i thought they would be around 1/3rd or 1/4th the overall cost to consumers.

 We know that SONY/Microsoft/Nintendo have licensing fee's which are on a per copy basis. These fee's would need to be preety large for SONY / MIcrosoft / Nintendo to recover from losses on hardware. -- So im gussing $10+ is likely.

 The publisher usually pays for the game to be made -- they must also get a large chunk of money for next gen games. My guess is that the publisher gets around 1/3rd of the cost of the game.

 game disks cost very little to manufacure - same with game cases - transport costs are different though. putting $5 aside for manufacturing / transport seems reasonable to me ...

 While im sure some devlopers make money off game sales the majority of independant devlopers would only get to hold them over for a few months untill they find a publisher for their next game(s)...

  Overall i feel my numbers are reasonable estimate based of the extremly limited info that we have, but if anyone has any numbers which conflict with mine im happy to say my numbers could be wrong as long as that person is able to explain were they got their numbers from or why they believe mine are wrong.



Aprisaiden on 23 July 2008
halogamer1989 said:
I wonder how much games will cost next gen? $70 new? $60 platinum hits? $50-55 near perfect used?

next-gen games should remain at $60 provided the competion dosn't force the cost of game devlopment up while industry growth slows.

 Just look at how Wii games are $50 instead of $60 --> its all to do with the risk involved and how many copies are needed for everyone involved to profit.

 



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Staude on 23 July 2008
Aprisaiden said:
halogamer1989 said:
I wonder how much games will cost next gen? $70 new? $60 platinum hits? $50-55 near perfect used?

next-gen games should remain at $60 provided the competion dosn't force the cost of game devlopment up while industry growth slows.

 Just look at how Wii games are $50 instead of $60 --> its all to do with the risk involved and how many copies are needed for everyone involved to profit.

 

wii games cost the same around here.. (denmark, europe)

 



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