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They aren't lost sales either. A publisher may offer a royalty per unit of 15%. Now this is per unit minus retail and distributor cuts, and cost of goods. So this may be as little in real terms as $5 per unit. However, a developer generally won't see a penny if this until the dev advance cost has been recouped, using that royalty amount per unit, meaning that once released if the game cost $1,000,000 to make, the developer won't see a penny until it has sold ~400,000 copies (assuming cost of goods, retail and distribution is %50 of retail - guessing). By this point the publisher has brought in $5.5m from their initial $1m investment. So, fully funded from day 1, with pure profit (minus Steam's share). That's pretty good really. Games don't cost 1m to make, and as such generally do not recoup. It's the same with the book publishing and music industry so far as I'm aware too. suesehT fucked around with this message at 04:05 on Feb 10, 2012 |
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Feb 10, 2012 03:55
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