Anyone ever wondered why games are $60 at launch? Well Mr. Michael Pachter can break it down for us. How much do developer’s get? How much do publisher’s make?
According to Mr. Pachter this is what it breaks down to…
Out of the $60:
The actual disc is: $.70
The store gets (Gamestop, Bestbuy etc…): $12
The console manufacturer (Microsoft, Sony, Nintendo): $12
The developer (Infinity Ward, DICE, Blizzard etc…) avg: $10
Money spent on advertising: $9
Publisher (Activision, EA etc…): $17 PURE PROFIT OF DOING NOTHING!
{ 2 comments… read them below or add one }
To be fair, the publisher does put up the money for the advertising and gets the games into stores, so it’s not really profit for doing nothing, but it is absurd that they make over 50% more than the developer when the developer puts years into making the game and the publisher put in a few months of marketing.
They also have to make up for failed games and overhead. EA has over 7,000 employees so they must be doing something