Friday, March 23, 2007

Why do Games Cost so much ?

Your Typical $60 game

Art/Design: 25% (about $15)
Programming And Engineering: 20% (about $12)
Retail: 20% ($12)
Platform Fee: 11.5% (about $7) eg Sony Microsoft*
Marketing: 7% (about $4)
Market Development Fund: 5% (about $3)
Manufacturing Costs, Packaging: 5% (about $3)
Licensing: 5% (about $3)
Publisher profit: 1.5% (about $1)
Distributor: 1.5% (about $1)
Corporate Costs: 0.3% (about 20 cents)
Hardware development costs: 0.05% (less than 3 cents)

*Each game maker has to fork over a fee for each unit sold, which varies from console to console for example some publishers say creating games for the PlayStation 3 is more expensive because of fees Sony charges to use its Blu-Ray DVD standard.

"But that number can get smaller depending on the publisher's status," says Peer Schneider, vice president of content publishing at IGN, News Corp.'s gaming portal. "The fee can be waived for exclusivity to a platform--that will buy you a kickback."

Read more on Forbes.com

Clickable inkies

19 comments:

gnome said...

This is a most interesting post Mr. Elderly. I'm afraid though I would never trust a Vice President of anything to tell the truth...

Besides, even if the numbers are a good (even if 100% unsientific) approximation they leave far too little for the individual working on a game.

Then again I just don't believe the programmers get to share 20% of EACH game sold. It would be totaly incompatible with the capitalist mode of production...

The Elderly said...

the publisher return looks suprisingly low, the art and design surprisingly hight and the amount that say Microsoft charge me for the pleasure of playing a game on xbox 360 that i've already forked out a fortune for, seems extraordinary....

..but Forbes.... i mean if you can't trust Forbes.. what hope is there for the World...

(considers not beleiving Forbes.....shudders with fear...)

gnome said...

Now, now... It's not Forbes, it's this guy. He reeks of sulphur and got red glowing eyes... Rumor has it he even uses real mice for his GUI navigating needs...

J said...

This is why all developers should develop for the Wii.

TheTimeRunner said...

I can believe this. I hear the horror stories for working for EA. They have it hard, it's the industries gold standard for showing would be game designer/programmers the loveless life of working in the field.

No wonder they want to raise the price of games in genera. Makes you wonder what happens to the "bargin bin" games does it not?

The Download Munkey said...

Agree with gnome on the first comment. I'm a developer too (not a game dev luckily) and developers are never the first (or in the top ten) in line when credit or money is involved.

The Elderly said...

Gnome im shocked, you know my feelings on mouse experiments...it would also explain the strange smell ever since I posted this.....

J, Wii appears to be a developers sandbox, Wii owners will reap the benefits, but Wii game prices in my local store aren't cheap by any means...

Timerunner, game prices drop incredibly quickly now for clangers, but i wonder who loses out on the gravy train..

mr. munkey im completely lost then, its criminal to think that those that take an idea from concept to production lose out on the major rewards...

the more i listen to download munkey and Gnome the more im doubting the article. So where am i going to find a definitive guide to the shareout...?

fatherkrishna said...

More proof if any were needed that we should all be playing Dreamcast and Saturn, whose games retail at around £2.50 a pop!

gnome said...

I generally agree with everyone here, provided of course Mr. Elderly's corrections are applied. Shocking!

:)

The Elderly said...

...pah! just got off the phone with the Director of Criminal Prosecutions.... he's not going to press charges for the blatant criminal neglect of Developers..

..the man has no foresight....

and FK, sure theres no proof needed..... what we have therefore is surplus proof, which we should be able to exchange for a decent top shelf game.....

fatherkrishna said...

LOL! "Top shelf" is it a bit rude?

The Elderly said...

erm not i should explain.. top shelf in a game store.... normally the number 1 and number 2 best sellers

not the top shelf in the magazine store.... which reminds me... either those top shelf magazine shelfs have gotten higher or i've shrunk......

The Elderly said...

,,of course not that I would ever be reaching for the top shelf magazines... no siree.. not me.. nope purely bottom shelf customer me...

gnome said...

Of course...

The Elderly said...

..good im glad we've cleared that up.....

cough!.....

(whispers to gnome.. the playboy i borrowed is in the cutlery drawer.....)

gnome said...

Ok, thanks. Got it. Sh...

The Elderly said...

mums the word.....

:)

gnome said...

:)

The Elderly said...

:)