MGS4 was a huge financial success for Konami I think only Onimusha is disagreeing with that. On the other hand I think people have a wrong idea about the reasons for porting a game to different platforms.

Ninja Gaiden 2 had low sales on 360 so people say it will be ported to PS3
MGS4 had huge sales on PS3 so you say it doesn't need to be ported to 360.

I think for the company its completely the other way around. The more money is made on one platform the higher the incentive to port it and make even more money. For a game that doesn't sell the porting costs may be higher than the additional profit. For a successful game porting will be profitable for sure.

Onimusha12 said: Considering MGS4's 57.3% of that quarterly profit is a little under $30m, I think its safe to assume the game is a good ways off from making back its $70m+ cost of development. MGS4 still is a financial dissaster. Though to truly determine that we would have to know how much MGS4 sold in the first quarter to put things in proper context. Even if we assume MGS4 has made just as much money since the first quarter ended it would still be $10m beneath making its money back. It's only a profit for the short term of this quarter and for this quarter's expenses, not for MGS4's development cost as a whole. Even then Konami is still making less than half of their revenue back.

 

 I think you are confusing profit and revenue.  Revenue is the amount of money a company receives.  Profit is the remainder of revenue when you subtract the cost of goods sold.  Konami had a first quarter revenue of 655 million. 

Onimusha12 said: Noobie said: btw from where $70 m development cost has come.?  It was stated in a pod cast I believe a long time ago.

Oh, you want a link for how much Konami makes off of each game, yet your brain is all kinds of fuzzy when you need to make a link for your 70 million dollar assumption?

Fuck that shit.

You provide your link, then he provides his, or just stop posting in my thread.  Good god, you just can't seem to shake the possibility that maybe PS3 is not in as horrible shape as you believe it is.  And it's showing.  You're just spouting out nonsens post after nonsense post in this thread.  Please don't respond to this post with your usual 20 page essay with personal jabs spread throughout, because I'm not giving you the time of day.  As most of your post are complete and uttter:

Now please, leave the thread and let Konami enjoy it's profits, thanks to Solid Snake, before I am forced to report you, for trolling.

Oh, and "disaster" is spelled with one "S", not two.

(which shipped three million globally on day one),

Dude it is 14 days.

DMeisterJ said: Here's a nice picture of how much Snake had to do with this profit. So do people still want to believe that MGS4 will be a financial travesty and have to be ported to the XBOX 360 as well?

Did it occur to you that peharps the reason why profits were so low previously was because a lot of money was being sunk into development of this game?  It is wrong to think that everything MGS4 sells is pure profit.  It is profit in this quarter but it doesn't mean in previous accounting periods huge amounts of costs & expenses weren't incurred on this thereby reducing profits for those periods.  But now that there is no more development costs there would not be much costs attributed to the game other than minimal costs of packaging and shipping.  In fact I would be seriously suprised if what it has sold so far has already recouped all the money Konami put into it.

 

Onimusha12 said: akuma587 said: Alright, we are assuming they have sold around 4 million to retailers and that they make about $40 per game (the average is probably higher than that, they made more than that in Japan with higher pricing, and the discrepancy between the dollar and the yen is beneficial to Konami, a Japanese company, not to mention how overpriced games in Europe are) 3,940,000 x $40 = $157,600,000 So even if we assume a $70 million dev cost, Konami has already DOUBLED that.    where are you getting that they're making $40 a unit. I want a link. Also I think a more realistic figure of units shipped would be within the range of 3-3.5m, not 4. It all boils down to how much money they make off each unit. Either way, while I doubt they've broken even, they're probably getting close.

Oh, now you want a link.  Where is your link?

What I claiming is ostensible through plain deductive reasoning.  We are going off US prices (which is actually kind of inaccurate to use for the whole market, since prices are relatively higher elsewhere).

We start with $60

Retailers generally get a $4-6 margin per title - $55

Sony requires a licensing fee which is under or around $5, we will say $3.50 - $51.50

Replication cost of a dual-layer Blu-Ray plus casing, we will estimate around $3 - $48.50

Advertising/Marketing costs for the game (Sony paid for it in some regions) we will estimate at $5 - $43.50

Miscellaneous expenses (retailer generally pays for shipping) we will generously place at $3.50 per disc - $40.00

And of course the more copies a game sells the less these margins become per disc on things like advertising and replication costs.  You are also conveniently ignoring any of the in-game advertising, such as the Apple advertisements and Sony advertisements.  Please, show us a link to this podcast you so vividly remember where the development cost is $70 million.

 

akuma587 said: Onimusha12 said: akuma587 said: Alright, we are assuming they have sold around 4 million to retailers and that they make about $40 per game (the average is probably higher than that, they made more than that in Japan with higher pricing, and the discrepancy between the dollar and the yen is beneficial to Konami, a Japanese company, not to mention how overpriced games in Europe are) 3,940,000 x $40 = $157,600,000 So even if we assume a $70 million dev cost, Konami has already DOUBLED that.    where are you getting that they're making $40 a unit. I want a link. Also I think a more realistic figure of units shipped would be within the range of 3-3.5m, not 4. It all boils down to how much money they make off each unit. Either way, while I doubt they've broken even, they're probably getting close. Oh, now you want a link.  Where is your link? What I claiming is ostensible through plain deductive reasoning.  We are going off US prices (which is actually kind of inaccurate to use for the whole market, since prices are relatively higher elsewhere). We start with $60 Retailers generally get a $4-6 margin per title - $55 Sony requires a licensing fee which is under or around $5, we will say $3.50 - $51.50 Replication cost of a dual-layer Blu-Ray plus casing, we will estimate around $3 - $48.50 Advertising/Marketing costs for the game (Sony paid for it in some regions) we will estimate at $5 - $43.50 Miscellaneous expenses (retailer generally pays for shipping) we will generously place at $3.50 per disc - $40.00 And of course the more copies a game sells the less these margins become per disc on things like advertising and replication costs.  You are also conveniently ignoring any of the in-game advertising, such as the Apple advertisements and Sony advertisements.  Please, show us a link to this podcast you so vividly remember where the development cost is $70 million.

She won't give you any links.  As everyone knows, 99 percent of her posts are bull-shit.

tuoyo said: DMeisterJ said: Here's a nice picture of how much Snake had to do with this profit. So do people still want to believe that MGS4 will be a financial travesty and have to be ported to the XBOX 360 as well? Did it occur to you that peharps the reason why profits were so low previously was because a lot of money was being sunk into development of this game?  It is wrong to think that everything MGS4 sells is pure profit.  It is profit in this quarter but it doesn't mean in previous accounting periods huge amounts of costs & expenses weren't incurred on this thereby reducing profits for those periods.  But now that there is no more development costs there would not be much costs attributed to the game other than minimal costs of packaging and shipping.  In fact I would be seriously suprised if what it has sold so far has already recouped all the money Konami put into it.

 

 You don't think Konami has made money after shipping 3 million plus units of this game in a month?

dbot said: tuoyo said: DMeisterJ said: Here's a nice picture of how much Snake had to do with this profit. So do people still want to believe that MGS4 will be a financial travesty and have to be ported to the XBOX 360 as well? Did it occur to you that peharps the reason why profits were so low previously was because a lot of money was being sunk into development of this game?  It is wrong to think that everything MGS4 sells is pure profit.  It is profit in this quarter but it doesn't mean in previous accounting periods huge amounts of costs & expenses weren't incurred on this thereby reducing profits for those periods.  But now that there is no more development costs there would not be much costs attributed to the game other than minimal costs of packaging and shipping.  In fact I would be seriously suprised if what it has sold so far has already recouped all the money Konami put into it.      You don't think Konami has made money after shipping 3 million plus units of this game in a month?

No why would I necessarily think that?  How much does Konami make from each game sold?  I would offer a sensible estimate of $10.  That's $30million to Konami.  Considering how long this game was in development and how expensive it generally is to make big games for PS3 it is very likely (in fact almost certain) this game cost more than $30m. 

 

tuoyo said: No why would I necessarily think that?  How much does Konami make from each game sold?  I would offer a sensible estimate of $10.  That's $30million to Konami.  Considering how long this game was in development and how expensive it generally is to make big games for PS3 it is very likely (in fact almost certain) this game cost more than $30m.

 

You're being just plain idiotic if you think Konami makes that little off each game.  Developers make more than that off of DS games.