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Forums - Sales - Konami's Q1 Profit up 50 percent, Thank you Solid Snake!

Yakuzaice on 06 August 2008
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. 

 


You realize retailers make practically nothing on software. I don't remember the exact number, and can't find the link, but Sony recently said in an interview they make about $30-40 on their games. Konami is the developer and publisher, and Sony definitely doesn't take a $20-30 cut on each third party game. Konami gets way more than $10 per copy. Not to mention all the LE copies that cost $85+.



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Kasz216 on 06 August 2008
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?

Playing devils advocate.

Revenue =/= profit.

 



Kasz216 on 06 August 2008
Kyros said:
I would offer a sensible estimate of $10.


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.

They said average game. Not "typical high-budget" game.

$38 is a very poor estimate as the same Sony guy estimated 30-40 per game is what they make... and they make by far the most money per game due to the fact that they don't have to pay a lot of the costs assosiated with buisness being 1st party.

Look at it this way $35 per game if you are the developer and publisher like Sony. So 35 a game for Konami. Take out shipping, production costs of the actual discs and manuals, art fees for boxes and manuals, a 10 dollar liscensing + fee, a Blu-ray royalty fee. That puts net reveue at what? 20 dollars split between publisher and developer if lucky? None of that is even counted in production costs.

Advertising costs...

MGS4 likely made a profit, but it probably took at least 2-2.5 million to get there at least.



Dno on 06 August 2008

lol @ people still saying you cant make money on the ps3 lol

Edit: or should i say lol @ MGS4 didnt make money on the ps3



colonelstubbs on 06 August 2008
steven787 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?

 

MGS4 on 360 would probably not benefit Konami or Microsoft too much.  I always said this.

That's a pretty graph, why such an increase in Wii and 360?

Because there is a decrease in the PS2

 



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Onimusha12 on 06 August 2008
Dno said:
lol @ people still saying you cant make money on the ps3 lol

 

 Oh, you can make money on the PS3, just not very much or at the very least not as much as you would have been able to make off of gaming last generation.



darconi on 06 August 2008

It should be obvious to most people that the return on investment for MGS4 sucked in comparison to last gen. This is why the videogame industry is consolidating like crazy.

Think about this. MGS4 sales currently at 2.7 mil. Sales likely top out similar or slightly lower than the other MGS series:

MGS3: 3.99 mil
MGS2: 5.57 mil
MGS: 5.59 mil

Now consider that they're selling almost the same amount as they used to sell and therefore revenues will be about the same.

But development costs have increased by $50-75 million. How can you justify same revenue but 3x development cost? Answer: You can't.



PapaSmurf5721 on 06 August 2008

good news they made a profit from mgs4.



                                     

                             End of 2008 Sales:

               Wii- 39 Million 360- 25Million PS3- 22 Million

                          PSN: papasmurf5721

                  

 

         

 

                                                   

      

bbsin on 07 August 2008

Don't forget about the money Sony gave them to keep it exclusive and probably fund a chunk of the development.



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