oh dmeister I love me some assuming

seriously tho.. don't u think a red lag would be going off if this game didn't meet expectations profit wise? I love how gamers always think that they know but they dont

Kyros said: Konami definitely can't be happy with the sales They sold 3m. We know the publisher gets close to 40$ for each sold game. That's 120m. We know that they got some sweet conditions from Sony so I would be really surprised if they did pay the 10$ tax for the console publisher. I am also quite sure that Sony paid a bit of their advertisement etc. So whatever money they paid for development they are definitely happy with the sales. You can be sure about that. So go back into the place you came from.

We do? 

 

What do we do now. Make moving targets? That's a bogus discussion anyway. It's easy:

If their contract with Sony allows porting and

portingcosts + costs of loosing the special relationship with SONY
then they will port it. They are a company so this is what counts.

Making a profit or "needing 40$ ROI" is bullshit. That is not how it works. Companies will maximize their profit and don't care if one product is profitable. That's similar to drugs. The development costs for a medical drug is irrelevant for pricing. The companies will ALWAYS price the product in a way that maximizes their earnings. That has nothing to do with the question if the development did cost 10$ or 10billion. If the market will pay 10$ for one pill they will ask for 10$ for one pill. The ( earnings-development costs) number ONLY goes into the "will we develop another pill like this"- question.

this is just as bad as the people who were tryin to cinvince me that lbp cost a fortune to make... people really need to get over the sony hate please its retarted

Publisher get 38$. Thats the 25$ you mentioned + marketing and distribution etc. which are also payed by the publisher. How much of this money is development is another question. But that's what the developer gets not the publisher. But I am pretty sure that 120m$ will have room for the development costs.

Kyros said: My guess would be that it needs at the very least a 40% Return on Investment for Konami. What do we do now. Make moving targets? That's a bogus discussion anyway. It's easy: If their contract with Sony allows porting and portingcosts + costs of loosing the special relationship with SONY < profit from 360 sales then they will port it. They are a company so this is what counts. Making a profit or "needing 40$ ROI" is bullshit. That is not how it works. Companies will maximize their profit and don't care if one product is profitable. That's similar to drugs. The development costs for a medical drug is irrelevant for pricing. The companies will ALWAYS price the product in a way that maximizes their earnings. That has nothing to do with the question if the development did cost 10$ or 10billion. If the market will pay 10$ for one pill they will ask for 10$ for one pill. The ( earnings-development costs) number ONLY goes into the "will we develop another pill like this"- question.

 

Wow, please don't try this line in your application interview.

The 40% ROI is a minimum target a company like Konami would need to make on a game like MGS4. Are you seriously thinking that Konami thinks: "ah, wahtever, if we don't make money on MGS4, we'll make it back on some other game. Too bad of the amazing investment we have done"

Companies use ROI targets to plan their investments, they have a certain amount to spend and will want to maximize the returns. MGS will be on the top of the list of returns.

And no, the drug industry is not the same as the videogame industry. For one: the retail prizes are standardized. That means your profit is basically sales-cost.

MGS4 will get huge boost this fall because its PS3 biggest exclusive. And another reason is big titles like GTAIV and MGS4 get better boost then smaller ones in fall.

Exactly a company uses ROI to plan FUTURE investments although you pulled the 40% number out of thin air. But if you read closely that's exactly what I wrote.

But MGS4 has been done. Finished, finito, sunk cost. So the investment they made into it is completely irrelevant to the question on what platform they will port it etc.

They will make a port if it is legal and profitable. Not because they somehow need to recover development costs. They might not make a MGs5 if MGs4 was not profitable though.

Kyros said: Konami definitely can't be happy with the sales They sold 3m. We know the publisher gets close to 40$ for each sold game. That's 120m. We know that they got some sweet conditions from Sony so I would be really surprised if they did pay the 10$ tax for the console publisher. I am also quite sure that Sony paid a bit of their advertisement etc. So whatever money they paid for development they are definitely happy with the sales. You can be sure about that. So go back into the place you came from.

who sais it isnt the new ps2? dont say the wii is cause thats in a league of its own!

 

Kyros said: Companies use ROI targets to plan their investments Exactly a company uses ROI to plan FUTURE investments although you pulled the 40% number out of thin air. But if you read closely that's exactly what I wrote. But MGS4 has been done. Finished, finito, sunk cost. So the investment they made into it is completely irrelevant to the question on what platform they will port it etc. They will make a port if it is legal and profitable. Not because they somehow need to recover development costs. They might not make a MGs5 if MGs4 was not profitable though.

 

I think we're talking different things here. I haven't said anything about porting, I only stated that I doubt that MGS4 will have made a decent (40%) profit. As far as I'm concerned this has nothing to do with an eventual port, since I'm sure it would take quite some time and recources.
Sure all the costs have been made, so a profit is a profit. However it is important for future projects. If MGS4 performed according to plan, we'll likely see more PS3 exclusives.

The 40% is not pulled out of thin air. It's a very suitable number for projects, like game development, that take several years. (for example some other possibilities for Konami to invest their money: ~5% -> put on the bank, ~10% -> invest in government bonds, ~15% -> shares).