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Game industry profits and chain of distribution

post #1 of 3
Thread Starter 
A general question, who gets paid when?

http://www.ps3blog.net/2010/02/25/where-does-the-60-you-pay-for-a-game-go/

Here is a rough pie chart, but it doesn't say when are the costs factored in. For example, do publishers make full money for the game as soon as a retailer orders it? Or is it only when the game sells (and even then some customers successfully return games, even opened ones). So if you buy a game for 10 dollars that was originally released at like 60, who gets what cut out of the 10 bucks?

This guy says games cost too much:

http://www.wired.com/gamelife/2012/04/opinion-kohler-video-expensive/

But the 90 dollar price for SFvTekken is if customers buy the game (and all unlocks) on the first day they come out. PC games these days (as opposed to say 12 years ago) devalue so fast that makes this question pertinent.
post #2 of 3
Quote:
Originally Posted by Popple View Post

This guy says games cost too much:
http://www.wired.com/gamelife/2012/04/opinion-kohler-video-expensive/

I love this article. First it was piracy costing them money, now it's used games. How can one put a price on something which isn't tangible or which has already been sold? There is no difference between pirating a game and/or buying a used game if the person would not have bought the brand new game anyway. Either way the company still gets no money.

It's a scam. All the way down to the consoles themselves. I can remember when I could buy a console for under $100 and it came with 3+ games, 2 controllers, and every connection possible to hook it up. Now you are lucky to get any game, only get one controller, and usually have to buy an extra adapter just to hook it up since the one it comes with is almost never the one I would need. At least this is how it was the last time I ever bought a console.
post #3 of 3
Thread Starter 
No one knows how and when money is made?
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