Discussion in 'General Gaming Discussion' started by Lulcielid, Nov 13, 2015.
Representing sales in excess of $750 millon.
I imagine that number is gross rather than net.
I´m not an economy expert but don´t they (publishers) make profit from shipping units rather than units being sold ?.
It's rather simple. Their profit is very dependent on the number of units sold. Whatever gross profit the game gets out of those sales, that same amount is 'cut' and shared among the businesses who made that gross amount such as the publisher themselves, the retailers and others. But don't get me wrong, a gross profit of $750 million is impressive but the publisher won't be taking all of that.
The number of units shipped gives us an idea on how demanding the game is in the market but it doesn't mean all those units shipped will be sold immediately. That's why you often see people care about the units sold rather than the latter.
But also take into account how much the publishers has spend to make that game happen. Aside from providing fund to give life to the game, take account of advertising and other means like that. If their cut of the pay is able to cover all the costs made with funding the game, advertising and more, then they break even.
If they earn well beyond the costs covered, then it's a profit
Doesn't really matter in the end though, it'll be sold eventually. Just look at Type-0 HD. Lol.
Oh yeah, wonder what happened with Type-0 HD......
Separate names with a comma.