Scene attitude towards piracy

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By Arjan

Paladin (697)

Arjan's picture

23-07-2003, 22:59

Let's do some calculations Smile

I've taken Ratchet & Clank as an example for *some* of the figures (employees, development time)

number of employees 40 employees
monthly costs per employee 3000 euros
development time: 18 months

employee costs: 2.160.000 euros (3000 * 18 * 40)
building/hard/soft costs 200.000 euros
other stuff: 100.000 euros
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total costs: 2.460.000 euros

In the future, development costs for big-budget games will only

game cost Console: 55 euros
licensing fee: 15 euros?!? (PC games usually cost 40 euros)
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shop takes 20% of sales: 8 euros
packaging & shipment: 5 euros
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27 euros
Publisher getting too much E: 7 euros (maybe even more!)
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money for developer: 20 euros per unit

number of games to sell for break-even: 2.460.000 / 20 = 123000

I've been fairly conservative with these numbers, so probably the developer is getting even less than 20 euros per unit! (maybe MrRudi can say some usefull things about my estimations?)

Let's take Enter The Matrix, an game which is said to have development costs of US$ 47 millions (don't know how the hell they can spend THAT much). Analysts say 4 million copies have to be sold before making any profit on the game, meaning at least $11 per sold unit must go to the developer. Taking into account games in the USA are generally cheaper than in Europe I'm not too far off with my estimations.

Ok, Ratchet & Clank is selling way more than that (alsmost 2 million copies sold) but there are also lots of games that publishers only loses money on (especially during launch times, Gradius3&4 is an extreme example with only a handful of unit sold in Holland, although developing that game didn't cost that much money). Most games sell less than 100000 copies. I've heard that only 20% of the games are being profitable, which means publishers are losing money on 80% of the games!

I don't think games be be sold much cheaper (or less expensive, depending on your opinion), maybe when the licensing fees are lowered and some other costs are lowered. Difference would probably be 10 euros or so. This will mean if you normally buy 4 games a year, you can buy one game extra! Although I doubt the avarage consumer will buy 4 games a year...

btw DVD's are relatively more expensive than games! top games can last over 100 hours, I doubt anyone really watches the same movie 10 times.

By wolf_

Ambassador_ (9724)

wolf_'s picture

23-07-2003, 23:41

"Alien", "Aliens" and "Alien 3", at least 30 times (each) by now.. Smile Tho it's mainly based on studying the music and the Giger artwork.

Aren't movies made to create a decent profit, or at least a break-even amount of $, running in the cinema alone? If so, DVDs and all other merchandise (think Spielberg with his dozens of ET stuff, not to mention the dino-revival during Jurassic Park) is a pure bonus. Hook, an early 90's movie by Spielberg, made profits already before it hit the cinemas.. 40.000.000$.. sortof payed in advance by the cinemas who were very sure about the amount of visitors/tickets they would sell.

By Arjan

Paladin (697)

Arjan's picture

24-07-2003, 00:12

"Alien", "Aliens" and "Alien 3", at least 30 times (each) by now.. Smile Tho it's mainly based on studying the music and the Giger artwork.
I played FFX for over 150 hours, pretty comparable to your 'achievements' huh Tongue
But those are really exceptions, movies are being watched 3-4 times, most games last about 20 hours.

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