A £100 million budget for the US negates the possibility of the budget being the same in the UK , the US market size is vastly larger than the UK one , possibly even more so round the time of FF7's release.

Actually it meanst hey spent more in the UK.  It doesn't negate anything though.

Afterall at the time of release. 1 GBP = 2 USD i believe.

You can try and argue it away but it's a documented fact.

It's a tough call, but I'll go through all the reasoning to see what estimate we can come up with.

The info from Capcom said that the company average advertising budget for a game is roughly 9-12% of the expected gross sales of a game. So a £2 million dollar advertising budget means that they expect sales of around £20 million for the game.

At £40 a game, that means Sony thinks that the game will sell 500,000 copies in the region.

I have heard that third parties get around $20-25 dollars per game sold. That is in US currency where games are $60 for the PS3. Since this is a first party game, they should get more since they don't pay licensing fees. I'm going to round that to $30, which is half of the total price. Assuming that logic holds true for the UK, I'll guess that £20 of every game sold goes to Sony.

So multiply 500,000 by £20 and you get £10 million. Subtract the £2 million ad budget, and that leaves you with £8 million in profit net revenue for the region.

Keep in mind that this is a rough estimate. Feel free to correct me on this.

EDIT:  That is an estimate of the expected net revenue for the region.  It is not profit.

*Sigh* Your not only trying to argue that £100 million was spent on FF7 but that more was spent in the UK on the games advertising in the UK than in the US.

FF7 Sold 2.7 million in the whole of the EU that equates to £162 Million in gross profit ( assuming every copy sold for as much as £60 which it probably didn't , also assuming that every copy was sold to the equivalent of 60 british pounds) . That would mean 60% of the cost's of the game would be attributed soley to marketing the game in the UK and that wouldn't even be all of the cost's associated with selling the game , i'm finding this really hard to believe ... honestly.

Other points to consider.

-The games market in the UK is vastly smaller than the US one

-The marketing of the game would have likely been paid for in the japaneese yen which is weaker than the pound IIRC.

-Square Enix aren't stupid , the amount of software needed to recover the marketing costs would negate the chances of such a high marketing budget.

- The UK population is 60 Million vs 303 million in the USA and 671 million in the rest of europe.

Your well documated facts are news articles which more likely than not were simply poorly sourced.

SE didn't pay for any of Final Fantasys marketing in the west.

Sony did.

You seem to be ignoring that.

They paid 100 million pounds to advertise FF7 and a few other games in a marketing blitz to promote the PS1.

Why?  Likely because the UK wasn't as big a videogame market and they wanted to breach new customers.

Details and what these "few" other games are would be nice . But considering that this was a more playstation orientated marketing approach as opposed to one for just a single game gives more weight to your argument. If the £100 million was spent over a period of years across various projects then I guess I could agree that such an amount was used.

Oops.

Let me rephrase that.  It is not profit.  The £8 million is approximately the net revenue that is expected for the UK region.

I have no clue what the game cost, and you can't really break that up into a regional analysis like the one I just did anyway.

This game will probably need to sell over a million worldwide to break even though.  Maybe even a little more.

EDIT: Let's assume your numbers are right, and the costs associated with this game are $40 million.  Then we assume the same as above, that Sony gets about $30 per game sold.  Then Sony would need to sell around 1.33 million copies of the game to break even.