By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Nintendo - Wii Dosent make 3rd parties money?

HappySqurriel said:
jammy2211 said:
HappySqurriel said:
jammy2211 said:

I believe that $100 million was just spin, whether it was the 'budget' and they spent alot less, just to WOW the media, or if it included marketing or what I dunno but no way in hell does a game cost that much to make.

Andddddddddddd, it generated revenue of $710 million so er, in short, no they're not.

 


I'll give GTA4 the benefit of the doubt, and we will assume that development and marketing costs were $100,000,000 in total, and that it generated $700,000,000 million in revenue before retailers and console manufacturers take their cut ... That works ot to (roughly) $7 per dollar invested.

In contrast the "Bomb" Boom Blox was probably developed for $2.5 Million (or less) and generated more than $28 Million in revenue before retailers and console manufacturers take their cut ... That works out to (roughly) $11 per dollar invested.

 

And the "Bomb" Boom Blox had what? 0 markting? Despite it's TV marketing campaign and Spielberg endorsement? Marketing costs escalate quickly, especially when you're doing it in 6 different territories.

The $710 million is definitely after retailers take their cut, as that's where the revenue comes from, what the retailers pay. I'd imagine it has the royalties for Microsoft and Sony in there, but if we're honest, after giving Microsoft Exlucisve DLC and being Sony's bigger release of last gen I'm sure they'd have 'negotiated' those expenses.

Where you pulled $28 million from I don't know either, but hey I'm sure you do. I still see GTA making a good $500 million profit though. Why the hell you decided to compare something like Boom Blox to GTA I've not a clue, it sort of goes completely against my whole point of looking at every game within it's context.

 

So, this site has (roughly) 12 Million copies of Grand Theft Auto 4 being sold on consoles at (roughly) $60 per copy for a grand total of $720 Million in revenue ... Now, it would be a safe estimate to presume that between $20 and $25 per copy of those games goes to the retailer and console manufacturer which means that between (about) $420 and $480 Million was generated from console sales. Now, where would this additional $300,000,000 in revenue come from? Did the PC sell more copies of GTA4 than were sold on the XBox 360?

Edit: ... And the Boom Blox revenue comes from multiplying 700,000 by $40

 $40 per game is wayyyyyyyyyyyyy to generation (EDIT: Generation? WTF was I thinking. High*) for a Wii game per unit profit. $60 RRP PS360 games are sold to retail at an average of $38 per copy (I can dig up a source if you care), and that's not including royalties and production costs.

Anyway $710 million - http://www.joystiq.com/2008/12/17/take-two-gta-franchise-made-710-million-this-year/ There's lots of them all over the internet if you do a quick google. I struggle to figure out where they made that much as well, but when you're dealing with the biggest gaming property in exsistance retailers and console manufacturers can be easier to negotiate with.

Which leads me back to my point, stop comparing Boom blox and GTA. It's silly, pointless and makes absolutely no sense.

 



Around the Network
jammy2211 said:
dib8rman said:
Production Expense
PS3/Xbox360 > Wii

Revenue
PS3/Xbox360 > Wii

Profit
Wii > PS3/Xbox360

That's the usual, not sure how true it is though; I mean logically I could say that if a product operated at a loss, let's say MGS4 sold 200k while Game Party sold 1 million units, then lets say that MGS4 needed 800k units to break even that would mean MGS4's Revenue was 800k + 200k. Then let's say Game Party needed 20k to break even, then that means it's revenue was 1 million + 20k.

By that point Game Party would have the higher Revenue and profit. However MGS4 sold upwards of 5 million I believe, so it would be fair to compare it to M&S Wii which is around the same numbers, which had the higher profit? That's a no brainer. Which had the higher Revenue? That's a no brainer also.

Ans 1 : M&S Wii
Ans 2: MGS4

In both cases the software resulted in a profit, this is regardless of platform. What I see in the OP only makes my day a littler funnier.

 That's a very extreme example, cuts out the wider pictures and uses a third party game co-developed by Nintendo, published by Nintendo in Japan and has the two most token gaming icons in the world on the front cover, one of which belongs to Nintendo!

 But yeah, you think third parties will be looking at Mario and Sonic and thinking they can match that success? You think they'll be willing to pour the amount of money Nintendo did into a constant tv advertising campaign from November to Christmas? :/.

 I just find it an odd example and don't really see the relevence, very few developement begins trying to top the best selling (sort of) third party game on any platform. Wii is a very profitable platform but not the gold mine many people suggest. It's the same as the PS360 really, if you want to make money you have to put alot of money in, it's high risk stuff. Which platform is more high risk? I couldn't possibly say until I have a better idea of marketing costs on the Wii.

 


That's too bad, because it really does simplify the general situation between platforms. Wish you did see the relevence.

I should go tit for tat because your neglecting the ad campaign and redesigned PS3's specifically made for MGS4 and of course it's bundle.

Two sides to the same coin.



I'm Unamerica and you can too.

The Official Huge Monster Hunter Thread: 



The Hunt Begins 4/20/2010 =D

jammy2211 said:

$40 per game is wayyyyyyyyyyyyy to generation for a Wii game per unit profit. $60 RRP PS360 games are sold to retail at an average of $38 per copy (I can dig up a source if you care), and that's not including royalties and production costs.

Anyway $710 million - http://www.joystiq.com/2008/12/17/take-two-gta-franchise-made-710-million-this-year/ There's lots of them all over the internet if you do a quick google. I struggle to figure out where they made that much as well, but when you're dealing with the biggest gaming property in exsistance retailers and console manufacturers can be easier to negotiate with.

Which leads me back to my point, stop comparing Boom blox and GTA. It's silly, pointless and makes absolutely no sense.

 

That was $40 per game revenue before retailers or console manufacturers take their cut ... Anyways, the point of comparing Boom Blox to Grand Theft Auto 4 was to demonstrate another way to look at "Success"

Very few (successful) companies look at products based on gross sales or gross revenue generated by a particular product, and tend to aim for a healthy return on investment from every product they produce. To put it another way, a company who spent $100,000,000 on a single game and $25,000,000 on their entire line-up for the Wii would consider their Wii efforts to be as successful as their big game if it generated 1/4 the profit.



dib8rman said:
jammy2211 said:
dib8rman said:
Production Expense
PS3/Xbox360 > Wii

Revenue
PS3/Xbox360 > Wii

Profit
Wii > PS3/Xbox360

That's the usual, not sure how true it is though; I mean logically I could say that if a product operated at a loss, let's say MGS4 sold 200k while Game Party sold 1 million units, then lets say that MGS4 needed 800k units to break even that would mean MGS4's Revenue was 800k + 200k. Then let's say Game Party needed 20k to break even, then that means it's revenue was 1 million + 20k.

By that point Game Party would have the higher Revenue and profit. However MGS4 sold upwards of 5 million I believe, so it would be fair to compare it to M&S Wii which is around the same numbers, which had the higher profit? That's a no brainer. Which had the higher Revenue? That's a no brainer also.

Ans 1 : M&S Wii
Ans 2: MGS4

In both cases the software resulted in a profit, this is regardless of platform. What I see in the OP only makes my day a littler funnier.

 That's a very extreme example, cuts out the wider pictures and uses a third party game co-developed by Nintendo, published by Nintendo in Japan and has the two most token gaming icons in the world on the front cover, one of which belongs to Nintendo!

 But yeah, you think third parties will be looking at Mario and Sonic and thinking they can match that success? You think they'll be willing to pour the amount of money Nintendo did into a constant tv advertising campaign from November to Christmas? :/.

 I just find it an odd example and don't really see the relevence, very few developement begins trying to top the best selling (sort of) third party game on any platform. Wii is a very profitable platform but not the gold mine many people suggest. It's the same as the PS360 really, if you want to make money you have to put alot of money in, it's high risk stuff. Which platform is more high risk? I couldn't possibly say until I have a better idea of marketing costs on the Wii.

 


That's too bad, because it really does simplify the general situation between platforms. Wish you did see the relevence.

I should go tit for tat because your neglecting the ad campaign and redesigned PS3's specifically made for MGS4 and of course it's bundle.

Two sides to the same coin.

 My point was that only 1% of developement begins with them setting their sights at matching the top selling games of the past 5 years or so. Look at one game which sold well and thinking it's a good example for others to follow is just plain idiocy.

 I'm not ignoring MGS4 but I think with games of that scale trying to 'guess' figures is foolish. No one knows how much it cost to make, how much it cost to market and how much Konami got out of Sony to keep it exclusive - but you can bet they didn't just let the game stay on PS3 without 'incentives'.

 I hate the fact that people regard M&S as third party anyway. For all intents and purpsoes it's first party, Nintendo did the marketing, they helped make the game and they published it in Japan. EA ain't gonna look at that and think "Wow we could get 6 million sales too!".

But if your point was to just say that M&S on Wii was probably more profitable then MGS4 then er, well done. I'd agree with that too, albeit I do stress the "Probably".

 



HappySqurriel said:
jammy2211 said:

$40 per game is wayyyyyyyyyyyyy to generation for a Wii game per unit profit. $60 RRP PS360 games are sold to retail at an average of $38 per copy (I can dig up a source if you care), and that's not including royalties and production costs.

Anyway $710 million - http://www.joystiq.com/2008/12/17/take-two-gta-franchise-made-710-million-this-year/ There's lots of them all over the internet if you do a quick google. I struggle to figure out where they made that much as well, but when you're dealing with the biggest gaming property in exsistance retailers and console manufacturers can be easier to negotiate with.

Which leads me back to my point, stop comparing Boom blox and GTA. It's silly, pointless and makes absolutely no sense.

 

That was $40 per game revenue before retailers or console manufacturers take their cut ... Anyways, the point of comparing Boom Blox to Grand Theft Auto 4 was to demonstrate another way to look at "Success"

Very few (successful) companies look at products based on gross sales or gross revenue generated by a particular product, and tend to aim for a healthy return on investment from every product they produce. To put it another way, a company who spent $100,000,000 on a single game and $25,000,000 on their entire line-up for the Wii would consider their Wii efforts to be as successful as their big game if it generated 1/4 the profit.

 Erm, Okay. In my opinion publishers are much more focused on having one big property that can bring in as much huge revenue as possible as often as possible. That's why Take 2 have GTA, Square Enix have Final Fantasy, Capcom have Resident evil, Konami MGS etc. I'm sure companies look at in your way too but ultimately they're asking themselves how they can establish the next huge big selling IP. I'm not saying this the approach I believe they should have but it's definitely how the industry has gone thus far.

 We really don't know solid figures and I can't be arsed to try and estimate something as crazy as that, we're going off on a tangent now anyway.

 



Around the Network

I still dont understand why people look at revenue as making money. Sure its part of it but when it all boils down to is profit.



I TAKE NO SIDES

@jammy2211

The point of the post wasn't to use reffered numbers but rather an example of what is understood and the logic behind it. You can disagree with it or not, but the point is that as long as M&S has sold and equal ammount of units as MGS4 that MGS4 will not over lap it in profit, but at the same time M&S will not over lap MGS4 in revenue. That's all.

There's nothing to debate here, I'm not speaking facts I'm explaining a generalization. As with all generalizations though they don't apply to every case. Also your assuming I'm not factoring marketing, shipping, production, R&D and all the other niceties but I am, the quantities I used are just figments of my imagination, I could very well have said: "MGS4 would need 7 units sold to break even thus..." But for familiarity I used numbers that could be close to the actual numbers and if they are, then it still wouldn't augment in anyway my point.

Now you want to say that M&S is a 1st party title, I had a nice talk with another guy who thought the same thing, almost a year ago; I'll say this, before Mario and Sonic could be published Sega had to license the IP's of Nintendo and for that alone this game is a 3rd party title.

Unless you want to say Sega didn't request Nintendo license the use of them - in which case either your misinformed or your lying. All Nintendo did was supervise, the game was designed by Sega Sports and Sega Japan. In Japan and Japan alone was this game published by Nintendo, you seem to not want to mention this.



I'm Unamerica and you can too.

The Official Huge Monster Hunter Thread: 



The Hunt Begins 4/20/2010 =D

psrock said:
thekitchensink said:
psrock said:
HappySqurriel said:
Aj_habfan said:
Derixs said:
Here is another thing to think about. If Mario and sonic sold 6.69 million coppies at 49.99 each then thet made just shy of 335million dollars off that one game.

25. Mario & Sonic at the Olympic Games (Sega) 6.69m (335 Million Dollars)

Crazy...

It doesn't work that way.

Lots of 3rd party games do make money, but really, Nintendo fans will never admit that any games failed.

A game can sell like .05m copies, and they will say, "Well, we don't have updated Europe data, which was probably more then America, and the budget was really low, so they probably made some money." Seriously, you will find stuff like that on every poorly sold Wii game. They can not accept a failure.

 

 

People will admit that games failed, but most people's claims of games failing are pretty moronic ...

Consider that people were calling Zack and Wiki (500,000+ sales) and Boom Blox (700,000+ sales) failures when these games obviously cost less than the $10 to $20 Million in revenue they generated for their publishers.

Where are you pulling these numbers from.

The games failed, admit it. Btw HAZE is on its way to a million, still a failure.

Assuming a game that took more than a year to sell 500k is making 20 million is crazy. Plus, i bet you 80% of the sale happened when the game was dirt cheap. Less revenue, right.

You do know what site you're on right?

 

And yeah, Haze failed--considering its' much higher budget than those two other games.  Seen its' developer's condition lately?  They're selling off all their assets.

 

 

where on this site can i find that Zack and Wiki made 20 million dollars for its publishers.  LINK?

Why is it so hard for Dumb people to admit they are dumb?

Fixed!

but anyway, do you actually pay attention to much?

1.  I'm pretty sure it's now considered 'Common Knowledge' that Wii games cost MUCH less to develope then HD.

2. $10 to $20 million does not = $20 million - It's an estimation, Both games made more then $10 million so it's somewhere in between 10 to 20 million.

3. Only retarded people think games selling more then 500K and make a profit = failed! If that's the case then most games of last Gen = Failed!  that's just Dumb...... although a game selling 1 million and loosing money does = failed!



It's me...  no really, it IS me!!!

Magera said:
psrock said:
thekitchensink said:
psrock said:
HappySqurriel said:

 

People will admit that games failed, but most people's claims of games failing are pretty moronic ...

Consider that people were calling Zack and Wiki (500,000+ sales) and Boom Blox (700,000+ sales) failures when these games obviously cost less than the $10 to $20 Million in revenue they generated for their publishers.

Where are you pulling these numbers from.

The games failed, admit it. Btw HAZE is on its way to a million, still a failure.

Assuming a game that took more than a year to sell 500k is making 20 million is crazy. Plus, i bet you 80% of the sale happened when the game was dirt cheap. Less revenue, right.

You do know what site you're on right?

 

And yeah, Haze failed--considering its' much higher budget than those two other games.  Seen its' developer's condition lately?  They're selling off all their assets.

 

 

where on this site can i find that Zack and Wiki made 20 million dollars for its publishers.  LINK?

Why is it so hard for Dumb people to admit they are dumb?

Fixed!

but anyway, do you actually pay attention to much?

1.  I'm pretty sure it's now considered 'Common Knowledge' that Wii games cost MUCH less to develope then HD.

2. $10 to $20 million does not = $20 million - It's an estimation, Both games made more then $10 million so it's somewhere in between 10 to 20 million.

3. Only retarded people think games selling more then 500K and make a profit = failed! If that's the case then most games of last Gen = Failed!  that's just Dumb...... although a game selling 1 million and loosing money does = failed!

 

man, you guys are angry. I'm sorry for hurting your feelings. Lol, the internet is serious busines.



 Next Gen 

11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)
dib8rman said:
@jammy2211

The point of the post wasn't to use reffered numbers but rather an example of what is understood and the logic behind it. You can disagree with it or not, but the point is that as long as M&S has sold and equal ammount of units as MGS4 that MGS4 will not over lap it in profit, but at the same time M&S will not over lap MGS4 in revenue. That's all.

There's nothing to debate here, I'm not speaking facts I'm explaining a generalization. As with all generalizations though they don't apply to every case. Also your assuming I'm not factoring marketing, shipping, production, R&D and all the other niceties but I am, the quantities I used are just figments of my imagination, I could very well have said: "MGS4 would need 7 units sold to break even thus..." But for familiarity I used numbers that could be close to the actual numbers and if they are, then it still wouldn't augment in anyway my point.

Now you want to say that M&S is a 1st party title, I had a nice talk with another guy who thought the same thing, almost a year ago; I'll say this, before Mario and Sonic could be published Sega had to license the IP's of Nintendo and for that alone this game is a 3rd party title.

Unless you want to say Sega didn't request Nintendo license the use of them - in which case either your misinformed or your lying. All Nintendo did was supervise, the game was designed by Sega Sports and Sega Japan. In Japan and Japan alone was this game published by Nintendo, you seem to not want to mention this.

 Okay I'll rephrase what I meant regarding M&S, although it 'is' a third party game, it's never going to be a suitable example for any third party to use as a benchmark for potential markets, where to focus developement or that there is a potential market for them to exploit. For a third party looking at Wii sales and deciding where to go next on the console, it's going to be treated as yet another of the Nintendo games dominating the top of the list. Whether it technically is or isn't doesn't matter.

 As for the M&S vs MGS4 thing, I don't think we're in a position to say whether or not one was more profitable. We don't know the developement costs of either, the marketing budgets, how much profit per unit they made, how much Sony helped Konami in paying for the thing and how much SEGA were giving to Nintendo and the Olympics commitee to use their licenses. Without solid figures it's all just guesswork, and doesn't really have any relevence to the majority of PS360 or Wii developement.

Anywho, it's 10 to 3 here now so I'm going to be off the bed soon. If I don't reply I'll be sure to check up on this thread in the morning, I may have another 5 minutes in me though.