Funny thing is $80 million for movie production is almost becoming the mainstream industry standard. Of course movies have more revenue streams than most games. For the movie studio to break even at the box office (equivalent to retail sales for a game) they need to gross nearly double the production costs. So an $80 million movie needs to gross about $150 million at the box office to reach break even for the studio (probably for the distributor too as they will wear most of the marketing costs)

1.8 million *$90 = ummmmmmmmm $162 million. If production budget was $80 million then if a game that has retail sales amounting to more than double the development cost (plus whatever the theoretical 200K sold to retailers is) doesn't at least break even for the developer then there is something seriously wrong with the gaming industry; namely the developers are getting shafted big time.

Somehow gaming needs to get back to the situation where titles will break even for developers considerably below 1 million in sales. That might mean finding a way to bring development costs down (develop for the Wii for example), or giving developers a bigger slice of the pie (which means less money for the others).

OP: Have you learned nothing? 3rd parties don't have profits on HD games.

Mmmm!?

I don't even think i have you on my friends list! so i auto win!

You won't have your chance to betray me, leave me for dead, OR let me see your Created Lightning character!

Oh, and let the head-bucking begin!

"Funny thing is $80 million for movie production is almost becoming the mainstream industry standard. Of course movies have more revenue streams than most games."

Hence why these escalating costs have been losing money. Aside from the hits, too many games are flopping.

How this relates to the thread is that even if this game turns a profit, will S-E itself make money this quarter, or will it be like Take Two losing money the same time GTA IV was setting records?

I didn't even read your calculations. all I want to say is that any game that doesn't make a profit if it sells 1.8 million is a bad project, and I don't think FFXIII is a bad project.

Final Fantasy XIII passed that margin of profit long ago. First day sales more than likely covered the initial budget. However, you must consider retailers and marketing strategies implemented.

nobody bought the game for over 9000 yen. It was selling for 7300 yen at many places on day 1. I'm not gonna bother speculating further.

Great to hear, now just hopefully it will be a great game.

 That's a decent average for how much each copy (Of a RRP $60 game) is sold to retailers, but then you have to take royalties, manufacturing, taxes, shipping etc off that $48. It'll be less if retailers order large bulks of a game or maybe be discounted for 'priority' store space.

 FFXIII retail price in yen was like nearly $100 though hence why they've made gangbusters so far. I sevely doubt the game cost $80 million to make but advertising would probably be above $10 million, albeit I don't know if it'd be any different in Japan.

so what?

S-E shipped it with an RRP of 9,000 yen

the store bought theme at that rate