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June 3rd, 2012, 06:21
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.

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