Originally Posted by moocowman
You really think there would be over $250 million in additional fees on top of the game's budget? I honestly don't know the numbers but it seems like if it was really that expensive, not a lot of triple A titles would succeed at all. Are you sure that those fees aren't already included in this $250m number? You would think that all of those things would already be covered by the budget and settled this close to release aside from things such as bonuses related to how well the game sells.
There could be. Who knows.
GTA4 sold 6 million copies in its first week. Let us assume that GTA5 sells 7 million first week. And let's say that the price is 60 bucks. How much of that 60 bucks is actually going to be Rockstar's money?
250M they spent so far is for production and advertisement and stuff. In addition to that they have an expence for each CD or digital copy they will sell. I would be suprised if half of 60 bucks is left for Rockstar. From that 60 bucks, Sony and Microsoft will get a loyalty fee of $10. Each copy will have various transportation and tax fees, stores that sell the game will also get a chunk of that 60 bucks. And there are probably other expenses along the way as well. So it will be hard to break even 250M dollars at first week. In a month or so perhaps.
Let us not forget that the 1st week sales are a combination of preorders that were placed perhaps months ago. Obviously they are not going to sell 6-7 million each week.
GTA4 sold 25 Million copies worldwide and it was released in 2008. They sold almost 25% of them in the first week out of the 250 or so week upto today.
At the end of the day revenue and profit are 2 different things.