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"Where does our £40 go?"

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Thu 20/02/03 at 20:22
Regular
Posts: 787
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
Thu 20/02/03 at 21:38
Regular
"Just Bog Standard.."
Posts: 4,589
Im not saying it was copied, not exactly, but I would say it was 'influenced' by an article in PSM2.
Thu 20/02/03 at 21:35
Regular
"Which one's pink?"
Posts: 12,152
Oh no!
Don't tell me it was copied!
I would never have known!!!

[\sarcasm]
Thu 20/02/03 at 21:24
Regular
"Just Bog Standard.."
Posts: 4,589
Someones been reading PSM2 I think.

:)
Thu 20/02/03 at 21:16
Regular
"Z will be here soon"
Posts: 7,562
My £40 plus the extra £5 to £10 service charge goes to the money hungry batsards at GAME
Thu 20/02/03 at 20:38
"For the horde!!!!"
Posts: 3,656
pring wrote:
> Have you ever wondered where that £40 goes that you spend on the
> latest game? Well I am going to tell you!

the shop till?
Thu 20/02/03 at 20:24
Regular
"+34 Intellect"
Posts: 21,334
WOW, so even if i buy a Nintendo game, Sony still make money. No wonder they can splash out on such original console names.
Thu 20/02/03 at 20:22
Regular
"'what goes here?'"
Posts: 711
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

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