By the way, guys,
http://fanaticmodz.com/Thread-Skyrim-Ships-10-Million-Copies
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According to Bethesda, the game has brought in over $650 million dollars in sales since its release on November 11
Steam sales figures are a closely guarded secret, and never factor into the NPD charts, but we have a little bit of a window into that world today. “Skyrim is the fastest selling title in Steam's history,” says Valve Director of Business Development Jason Holtman.
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you heard right, steam isn t even included in that number !!!
I don t think they ll go bankrupt anytime soon.
Since we don't know their costs of development and marketing, then any answer is a SWAG*
*Silly Wild Ass Guess
Anyone with some business experience can estimate their costs
The only part really in the mist is voice acting, but you can use rational judgement for that one
knowing the voice acting isn t the main selling point, how much % would you add to the budget.
same argument goes for marketing.
So this makes me certain that the cost are between 50 M and 100 M
(50M estimated by worker cost 100 peoples x 5 years x 100K per year, which is generous)
(equipment and building cost are totaly dwarfed by salaries)
(unless you are building a space shuttle, a nuclear reactor, or something of that sort.....
for ordinary software development, salaries are the core expense)
now, I could be wrong on my conservative approach, which is why I let it run wildly by 100% to cover all the rest
this gives the 100 million estimate
the question remaining is what is that 650 million number, and what is the income from the valve side
also I m not sure what are the profit margin on console
if they sold over 10 million copes, I suppose that s the amount made at the retail point,
not the direct profit made by bethesda (as some article mistakingly implied)
so between the retailer and the distributor, bethesda could loose 50-80% of that amount
for steam, if it s like impulse, bethesda probably make 70%
but steam is popular, so maybe they are more greedy
whatever the case, the wost case is a profit of 130 million, not counting steam
I doubt the real numbers are that low
to that number you need to substract 50-100 million depending what their budget was.
I tend to be conservative on that, doubt they throw money to the wind
(First, I think most retailers typically take about 50% of the price of a new release)
This could be driven down by the market, because of the emergeance of things like steam
I don t think retailers want to disapear from the map
On the other hand, there is also a cut for the distributor, another 50 %
So if the final price is 60$, the retailer paid 30$ to the distributor who paid 15$ to bethesda
10,000,000 copies x 15 = 150 million easilly
Now, I m not sure if those sales figure were worldwide or just the us
What is certain is at this point they most likely made a profit of over 50 million from a 50-100 million investment
That s a 50% to 200% return on investment, over 5 years. still good. it s like 10%-40% interest rate
What ccna said about not knowind the advertisemant and voice acting cost is partialy true
but game developers are not madmen.
like someone said, you will put a ceiling based on what happen in the business,
and what sales you are expecting. you don t shoot yourself in the foot on purpose,
the other thing is, for something like a game, you put your money where it sell.
dragon age 2 was highly criticize for putting too much on voice acting and too litle where it mattered
It s cute for the cutscenes, but peoples aint buying a movie, they re buying a game
you can assume they will not go beyond doubling the cost from the salaries.
this is software, not a space shuttle
In any case, since that 650 million isn t profit, but retail sales figure, they didnt get as ridiculously rich as I initialy thought
(that would have been 1000% return on invesment, the equivalent of a 200% interest rate!!!)
I still hope they give good bonus to those hard working developers