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Forums - Sales Discussion - How the revenue from each copy sold splits?

Licensing is a separate cost from "console owner". Here is a list I found a while ago. I was wrong about a few things, but yes, about 10$ goes to sony/ms/nin, depending on the company and the title.
http://digg.com/gaming_news/Why_do_my_games_cost_so_much

Art/Design $15

Programming and Engineering $12

Retail $ 12

Console owner fee $7

Marketing $4

Market Development Fund $3

Manufacturing Costs, Packaging $3

Licensing $3

Publisher Profit $1

Distributor: $1

Corporate Costs: $.20

Hardware Development



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Licensing is for licensing content in game, not console licensing, FYI.



Back from the dead, I'm afraid.

mrstickball said:
Licensing is for licensing content in game, not console licensing, FYI.

yes, i should have mentioned that.



There is no way a retailer can survive on a 10% markup. Just isn't possible. If you've ever operated a retail business, you would know this.



Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.

bdbdbd said:
Taxes can take a fair share of the retail price. For example, in Germany it's 19% from the price of the game, Finland 22% etc.

The profit in different regions depends also on the current currency exchange rates and the currency used in trading.

One example i can recall, was someone posting a NOE list price that retailers paid for Super Mario Galaxy, that was 35€, and the game retailed for 50€, if i recall.

Very good point.

I am sure this tax is already penciled in with the retail price so it is pased on to the consumer.

So if for example you are trying to arrive at a rough figure of what a developer makes from a game that sold 1m copies don't forget to minus the tax and that it varies.

 

 

 

 



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It is something like

Retailer - $20
Console manufacturer - $15
Publisher - $20
Hardware/shipping - $5

- Developers don't get any profit from game sales, unless they self fund the project (and then they get the majority of the "publisher" revenue).