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Have you ever wondered where that £40 goes that you spend on the latest game? Well I am going to tell you!
The retailers/shops receive £14 (35%)
Sony receive £10 (25%)
Publishers receive £6 (15%)
The Government receives £4 (10%)
Wholesalers receive £3 (7.5%)
The Developer receives £3 (7.5%)
So the big winners are Sony and the Retailer. This doesn't seem fair as the developers are the ones who put the time and effort in to make the games work and they only receive a measly £3 of your money. This is disgusting! NOTE- if the developers have a good relationship with the publisher then they may receive a chunkier part of the £40.
This is what normally happens with an average video game (not GTA: VC or MGS2 etc...).
Number of copies sold by a top 50 game= 50,000
Revenue- 50,000 X £40 = £2,000,000
Percentage taken by publisher/developer= 22.5%
Actual money made by publisher/developer= £450,000
Average cost of developing an average game= £500,000
Loss= £50,000
This why so many publishers are failing to balance the books as they are not selling enough copies of their game to cover the cost of making it. Take Superman for example, they only managed to sell approximately 2400 copies so they hugely lost money, but hey it is touch and go on how people will react to your game. You could make millions or you could go bankrupt!
So next time you complain about game prices being too high, don't complain to the shops, complain to Sony who should lower the amount of money they receive and give it to the publishers and developers who in turn have to cover the price of making of making the game and sometimes even making a very nice profit as well! Sony could even lower the prices of the games and give a lot of the money that is received back to the publishers and developers. I doubt this would happen though! Sony just want more and more money!
The publishers that are struggling when it comes to balancing the books are Rage who released Crashed, Twin Calibur, David Beckham Soccer and Rocky last year are set for bankruptcy this year. Virgin Interactive Ent. who released nothing last year are looking like running out of money too. Acclaim who brought out Burnout 2, BMX XXX, Turok Evolution, Aggressive Inline last year need a big hit fast but I feel thay will pull through! Electronic Arts (EA) are set to never go bankrupt after having a great year last year with games such as Harry Potter, LOTR, Medal of Honour:Frontline and the regular sports games. This year looks equally impressive. Go EA!
Thanks for reading and please get back to me!
pring
The retailers/shops receive £14 (35%)
Sony receive £10 (25%)
Publishers receive £6 (15%)
The Government receives £4 (10%)
Wholesalers receive £3 (7.5%)
The Developer receives £3 (7.5%)
So the big winners are Sony and the Retailer. This doesn't seem fair as the developers are the ones who put the time and effort in to make the games work and they only receive a measly £3 of your money. This is disgusting! NOTE- if the developers have a good relationship with the publisher then they may receive a chunkier part of the £40.
This is what normally happens with an average video game (not GTA: VC or MGS2 etc...).
Number of copies sold by a top 50 game= 50,000
Revenue- 50,000 X £40 = £2,000,000
Percentage taken by publisher/developer= 22.5%
Actual money made by publisher/developer= £450,000
Average cost of developing an average game= £500,000
Loss= £50,000
This why so many publishers are failing to balance the books as they are not selling enough copies of their game to cover the cost of making it. Take Superman for example, they only managed to sell approximately 2400 copies so they hugely lost money, but hey it is touch and go on how people will react to your game. You could make millions or you could go bankrupt!
So next time you complain about game prices being too high, don't complain to the shops, complain to Sony who should lower the amount of money they receive and give it to the publishers and developers who in turn have to cover the price of making of making the game and sometimes even making a very nice profit as well! Sony could even lower the prices of the games and give a lot of the money that is received back to the publishers and developers. I doubt this would happen though! Sony just want more and more money!
The publishers that are struggling when it comes to balancing the books are Rage who released Crashed, Twin Calibur, David Beckham Soccer and Rocky last year are set for bankruptcy this year. Virgin Interactive Ent. who released nothing last year are looking like running out of money too. Acclaim who brought out Burnout 2, BMX XXX, Turok Evolution, Aggressive Inline last year need a big hit fast but I feel thay will pull through! Electronic Arts (EA) are set to never go bankrupt after having a great year last year with games such as Harry Potter, LOTR, Medal of Honour:Frontline and the regular sports games. This year looks equally impressive. Go EA!
Thanks for reading and please get back to me!
pring
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You spelt simple wrong! (simpel!!!)
Looking back to the original post, where has VAT gone ?? It's saying the government gets 10%, but stores buy items minus the VAT costs, then add the VAT on when selling it, so surely the government gets a minimum of 17.5% ??
And the reason so much goes to the main companies - i.e Sony, Nintendo, MS, is that they stump up the cash to make the consoles in the first place, and to sell them at a loss for however many years it takes to establish a large user base. They need software to provide revenue, simpel as that.
~~Belldandy~~
And the reason so much goes to the main companies - i.e Sony, Nintendo, MS, is that they stump up the cash to make the consoles in the first place, and to sell them at a loss for however many years it takes to establish a large user base. They need software to provide revenue, simpel as that.
~~Belldandy~~
Hate to disagree with you Slave, but Rocky is a top game IMHO...
:-)
:-)
pring wrote:
> The publishers that are struggling when it comes to balancing the
> books are Rage who released Crashed, Twin Calibur, David Beckham
> Soccer and Rocky last year are set for bankruptcy this year.
If rage go bankrupt then it's their fault in the end for not releasing decent games.
Crashed - 60% or so it got diddn't it? It was pretty average.
Twin Calibur - has anyone played this? it's so unbelieveably rubbish it's unreal. They should not have demo'd it on the OPSM2 coverdisc, i know someone who liked the look of this until they played it. Funny lasts for about 30 seconds before true hatred sets in.
David Beckham - Sold on the licence rather than being a good game, i remember this getting something like 2 or 3 out of 10. Utter cheddar.
Rocky. Risky premis in the first place. Boxing, a minority sport, Rocky, a very old film, and the game wasn't all that hot either.
If they wanna make money, they are going to have to sell more games, but for games to sell, they are going to have to be a lot better than their current crop. simple.
> The publishers that are struggling when it comes to balancing the
> books are Rage who released Crashed, Twin Calibur, David Beckham
> Soccer and Rocky last year are set for bankruptcy this year.
If rage go bankrupt then it's their fault in the end for not releasing decent games.
Crashed - 60% or so it got diddn't it? It was pretty average.
Twin Calibur - has anyone played this? it's so unbelieveably rubbish it's unreal. They should not have demo'd it on the OPSM2 coverdisc, i know someone who liked the look of this until they played it. Funny lasts for about 30 seconds before true hatred sets in.
David Beckham - Sold on the licence rather than being a good game, i remember this getting something like 2 or 3 out of 10. Utter cheddar.
Rocky. Risky premis in the first place. Boxing, a minority sport, Rocky, a very old film, and the game wasn't all that hot either.
If they wanna make money, they are going to have to sell more games, but for games to sell, they are going to have to be a lot better than their current crop. simple.
Probably the reason that PC games are cheaper - no Sony to take a £10 cut on everything.
BORING
i can remember when games were very cheap.
when i had my Commerdore 64 games were about £4 or box sets with a few games were about £15. Do many of you remember them times?
when i had my Commerdore 64 games were about £4 or box sets with a few games were about £15. Do many of you remember them times?
It's amazing what a grasp retailers have over publishers, who in turn are in control of developers. Just thinking about it demonstrates how weak the devloper's position in the industry really is.
Flash back to 10-15 years ago, and.. well, I was only two, but it's certain that game creators had a lot more power over what they made back then. If you think about it, if games wee sold at £30, with the developers earing the same amount, retailers could still be making a profit.
Oh, and another thing - I'm not sure if the cost is included in the mentioned figures,but publishers have to pay retailers an inital cost ust to include them in their catalogue in the first place! An example of this in effect was the failure of Rayman Advance copies turning up in GAME stores, as the publisher had felt the profit margin would be too tight (or non-existent) if it paid GAME. And yes, this was taken from Edge.
Flash back to 10-15 years ago, and.. well, I was only two, but it's certain that game creators had a lot more power over what they made back then. If you think about it, if games wee sold at £30, with the developers earing the same amount, retailers could still be making a profit.
Oh, and another thing - I'm not sure if the cost is included in the mentioned figures,but publishers have to pay retailers an inital cost ust to include them in their catalogue in the first place! An example of this in effect was the failure of Rayman Advance copies turning up in GAME stores, as the publisher had felt the profit margin would be too tight (or non-existent) if it paid GAME. And yes, this was taken from Edge.
I know, it's disusting!
Why the funk should sony reduce the price anyway? They develop the console, they make a loss on every console sold! They need the money from games.
Retailers should reduce the price, like Special Reserve and Gameplay (to name a few) already have. I know they need to make money for maintaining the stores and staff, but there's no excuse for GAME making £14 on every game!
Retailers should reduce the price, like Special Reserve and Gameplay (to name a few) already have. I know they need to make money for maintaining the stores and staff, but there's no excuse for GAME making £14 on every game!
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