Well done Snake.

LOL. I think we have a pretty good estimate of what developers and publishers make.
For a normal (non-exclusive, supported) game its ~38$ per game for the publisher and less for the development team.

A sony boss said a typical high-budget game takes 20-30m to develop and needs 1m sales to break even. MGS4 was more expensive to develop but it has already almost 3m sales. Besides I doubt that they needed to pay the normal 10$ tax to Sony. So Onimusha is delusional. And 10$ is a joke.

tuoyo said: 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.

Are you saying they make $10 net (revenue - cost), or they only receive $10 for each game sold?  Konami is the developer and publisher for this game. 

 

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.

What are you talking about? The 30 million is profit alone after production costs. You know, that's why lots of companies are posting losses of like 110 million? Because it cost more then it made?

 

dbot said: tuoyo said: 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.    Are you saying they make $10 net (revenue - cost), or they only receive $10 for each game sold?  Konami is the developer and publisher for this game.

Okay so tell me then how much do you think it gets?  You do realise Sony and retailers have to take their cut.  Then there's cost of production, packaging, etc.  Maybe $10 is low but no way can it be much more than $20 otherwise Nintendo would be like the richest company in the world.  Are you confident that MGS4 cost less than $60m to develop, market and advertise? 

 

Onimusha12 said: akuma587 said: 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. At this rate it will have to sell roughly 6m copies to just break even with development costs. 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.   Thanks GBallZack!  Always making lemons out of lemonade! Truth is truth. Unless we know how much MGS4 sold in the first Quarter, it will be difficult to put this situation in the proper context. MGS4 may still only need to sell 3.5m copies to break even financially now that I think about it, so the 6m may be a bit hasty of a figure on my part.

 

Are you kidding me?The truth is truth?

Konami said already,MGS 4's sales are far more better than their expectation,

So you are going to tell me that they expect they are going to lose money on MGS 4,

yet,they still keep the project running.

If you are still going to say that Konami spent $70m to develop MGS 4,

its OK with me,

anyway,just show us the link to proof that you are not talking nonsense,

don't spread the rumour,kids.

Konami is extremely healthy financially. The company most likely would have made profit without MGS4. Also, I don't think they've put the production cost of MGS4 in this quarter but since they were profitable while the game was developed (unlike Take Two), MGS4 will bring them a lot of profits.

The problem is that it's highly unlikely that the game makes as much profit as the other games in the series. MGS 1&2 both sold nearly 6 million units and had smaller budget.

tuoyo said: dbot said: tuoyo said: 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.    Are you saying they make $10 net (revenue - cost), or they only receive $10 for each game sold?  Konami is the developer and publisher for this game.    Okay so tell me then how much do you think it gets?  You do realise Sony and retailers have to take their cut.  Then there's cost of production, packaging, etc.  Maybe $10 is low but no way can it be much more than $20 otherwise Nintendo would be like the richest company in the world.  Are you confident that MGS4 cost less than $60m to develop, market and advertise?

I think that the Konami report suggests that MGS did 104 million in revenue.  If you divide that by the 3.94 million shipped number it comes in at $26.40 per copy.  I think this is more in line with what a publisher + developer cut would be.  If the 104 million number is correct then, Konami made roughly 34 million in profit on MGS in July. 

 

tuoyo said: Okay so tell me then how much do you think it gets?  You do realise Sony and retailers have to take their cut.  Then there's cost of production, packaging, etc.  Maybe $10 is low but no way can it be much more than $20 otherwise Nintendo would be like the richest company in the world.  Are you confident that MGS4 cost less than $60m to develop, market and advertise?

 

What are you even basing your numbers off of?  We are basing our numbers off the pretty much accepted software designer revenue of games priced at $60, somewhere between $35-$45.  Its not a first-party title, so Sony barely gets anything except the licensing fee, and you are seriously overestimating how much retailers get. 

My friend who worked at Best Buy got things discounted to 5% above cost, which was great for cables, stereos, and TV's, but awful on things like CD's and video games, where he would save only a few dollars at the most.

Onimusha12 like to to make controversial posts but most of the time has troubles backing what he/she says with fact.

Commonly accepted number is that publisher get 25/30$ per HD console game sold.

In this case Konami is both the publisher and the developer so they don't have to share the money with someone else.

Even if we lowball it at 25$ we get :

3 million *25$ = 75 million $

Last I checked 75 > 70..........