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Forums - Gaming Discussion - SD CoD:WaW Might be More Profitable than HD Version.

The key here is IRR (internal rate of return).

Lets look at the raw numbers quickly.

HD totals sales- 7.6 mil

SD total sales- 1.34 mil

SD version has only sold 17% of what the HD version, but the number is climbing weekly.

This weeks sales-

HD- 139k

SD- 51k

SD only 37% of what the HD versions did this week.

Now I do not have access to the Budget of how much it cost for Treyarch to port COD:WaW to the SD consoles. BUT, if it was around 20% of the cost of the main game than in the end dollar for dollar the SD version was more profitable.

Note- do not say that the IRR does not matter, many CFOs use this IRR number to determine where to make investments and where to not. However I am no way insuing that the SD version is more important to Activision than the HD version at all. I am just showing you that ANYONE who says it would be a mistake or a waste of time for IW to put COD6 on the Wii is a friggen idiot.

Also anyone who might now how much less the SD port cost than the entire budget of the HD version can please share. I suspect it is less than 20% (alot less), but then I again I am not an insider in the gaming industry.



End of 2009 Predictions (Set, January 1st 2009)

Wii- 72 million   3rd Year Peak, better slate of releases

360- 37 million   Should trend down slightly after 3rd year peak

PS3- 29 million  Sales should pick up next year, 3rd year peak and price cut

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People are really stretching that 1/3rd - 1/4th ratio.



Aj_habfan said:
People are really stretching that 1/3rd - 1/4th ratio.

 

Um, I am pretty sure that the number you are speaking of is the cost to build a game from the ground up. I am reffering to the added expense to port the game.



End of 2009 Predictions (Set, January 1st 2009)

Wii- 72 million   3rd Year Peak, better slate of releases

360- 37 million   Should trend down slightly after 3rd year peak

PS3- 29 million  Sales should pick up next year, 3rd year peak and price cut

@ Aj, actually, the 20% figure is likely too high.

If you had two seperate, equally skilled and equally highly paid teams, and kept them completely seperated, unable to communicate, then the Wii version would cost 1/3-1/4 what the 360 version cost. However, because the Wii version is a port, it means that the Wii developers could copy paste large sections of code for use in their game. They also didn't have to spend a cent on paying writers for the plot/dialogue, voice actors, and alot of the graphic design could be reused.

Yes, in terms of IRR, the Wii version probably does edge out the HD versions, and CoD6 will come to the Wii



That's reasonable.

But it can't be looked at from a percentage ratio.

Let's say the game cost 5 million on PS3/360 and 1 million on Wii.

At $20 profit for each game (is Wii version $50? I'll say they get the same anyway), the Wii version would need 50,000 sales to break even, the PS3/360 versions 250,000.

After that, it is all profit. And I'm not sure where you got the SD number...

ANYWAY:

1,340,000 - 50,000 = 1,290,000 x 20 per copy = $25,800,000
7,600,000 - 250,000 = 7,350,000 x 20 per copy = $147,000,000

Does that make sense or am I way off course here?



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My brother could make CoD:WaW on Wii for $20, so I think you are right. He knows all the guys at Target and stuff, so they will put it on the shelves for free after he photocopies some disc covers and posts flyers all over town about it.



 

Presumably SD is all the consoles that run in less than 720 lines of vertical resolution or whatever

WiiPS2DSPSP



Aj_habfan said:
That's reasonable.

But it can't be looked at from a percentage ratio.

Let's say the game cost 5 million on PS3/360 and 1 million on Wii.

At $20 profit for each game (is Wii version $50? I'll say they get the same anyway), the Wii version would need 50,000 sales to break even, the PS3/360 versions 250,000.

After that, it is all profit. And I'm not sure where you got the SD number...

ANYWAY:

1,340,000 - 50,000 = 1,290,000 x 20 per copy = $25,800,000
7,600,000 - 250,000 = 7,350,000 x 20 per copy = $147,000,000

Does that make sense or am I way off course here?

off course, net revenue is the main thing a CFO is worried about, thats why I said this thread was not about which was more importance. It was just to prove that the Wii game is doing VERY well for what it is.

 



End of 2009 Predictions (Set, January 1st 2009)

Wii- 72 million   3rd Year Peak, better slate of releases

360- 37 million   Should trend down slightly after 3rd year peak

PS3- 29 million  Sales should pick up next year, 3rd year peak and price cut

scottie said:
Presumably SD is all the consoles that run in less than 720 lines of vertical resolution or whatever

WiiPS2DSPSP

PSP version doesn't exist, PS2 has no numbers. It's just DS at 30k, and Wii at 880k.

 



bigjon said:
Aj_habfan said:
That's reasonable.

But it can't be looked at from a percentage ratio.

Let's say the game cost 5 million on PS3/360 and 1 million on Wii.

At $20 profit for each game (is Wii version $50? I'll say they get the same anyway), the Wii version would need 50,000 sales to break even, the PS3/360 versions 250,000.

After that, it is all profit. And I'm not sure where you got the SD number...

ANYWAY:

1,340,000 - 50,000 = 1,290,000 x 20 per copy = $25,800,000
7,600,000 - 250,000 = 7,350,000 x 20 per copy = $147,000,000

Does that make sense or am I way off course here?

off course, net revenue is the main thing a CFO is worried about, thats why I said this thread was not about which was more importance. It was just to prove that the Wii game is doing VERY well for what it is.

 

But your title says more profitable. I do agree with your last point though.