The Witcher 2 - 1.7M Sold
View Single Post
June 3rd, 2012, 05:21
Here are some links on who gets how much from retail sales of Video Games:
And darn, I had a great chart but can't find the link now.
But it seems that for a console game, the developer nets about 15% of the total purchase price when the game is sold a at a retail store ($9.00 in the case of a $60.00 Video game) although this can vary depending on the developer, some developers can apparently negotiate a bigger share of the pie.
One interesting thing is that for console games, 30% of the sales price goes to the console manufacturer (e.g., Microsoft for xbox), and this is non-negotiable. So the return to all parties is larger in the case of a PC game — so the developer should get 15% of that 30% (4.5%) in the case of a PC game; meaning that the developer should get about 19.5% of PC sales price on average.
Basically, if Witcher 2 development costs are 25% or less of the costs of the large developers development costs (10 million development for Witcher vs 40-50 million for ME3 and Skyrim), then CDPR should see a profit at 25% of the sales needed by the big developers to turn a profit.
The above actually makes sense when comparing to the movie industry where the indie film makers can make a movie at a much lower cost than costs for the big studios.
Digital distribution reduces but doesn't eliminate the retailer's take of the pie, btw, since digital distribution costs are substantially lower.
Keeper of the Watch
Join Date: Aug 2011
View Public Profile
Send a private message to RPGFool
Find More Posts by RPGFool