[QUOTE="mrbojangles25"]
[QUOTE="Emraldo"]
Or they'd sell 3x as many copies, and be just as successful. All a matter of perspective.
Resistance_Kid
true, but the costs of production still stay the same.
So while you might be selling 3x as many copies, its also costing you 3x as much to get them into peoples hands.
Lets say it costs you 15 dollars to make and ship somethng.
If you sell it for 20, thats 5 dollars profit:
5 dollar profit x20k copies sold = 100k profit.
Now lets say you sell it for 60 dollars, but sell only a quarter of the copies:
45 dollars profit x 5k copies sold = 225k profit
This is how it works in the beer business, too. Can and bottle sales are peanuts compared to keg sales simply because there is a lot more profit to be had selling a 100 dollar keg instead of a 5 dollar sixpack
Good point, but i don't think that packaging costs so much, and most pc games are around $40, therefore slicing the profit.
yea I was not refering solely to packaging, though. I meant the entire process of making it.
in school we did a study of Coca Cola. The actual contents of the can only costs $0.05; thats for the corn syrup, water, flavor...the ingredients.
The reasona can of coke cost $0.75 is a lot more complex.
-salaries for employees
-shipping
-packaging
-investment into new equipment
-investment into new factories
-insurance
-recalls
-electric bills
-gas bills
-rent
-other bills
-research and development into new products
After all that is factored in, to create and get that can of coke to your store shelf, it cost them $0.68.
We like to think big corporations are taking us for a big ride and charging more than they need, but the simple fact is that they do not make much profit off of stuff. They rely on their reputation more than anything to sell; that is why its always Coke vs Pepsi. Theyre the two with the reputation. Its never Coke vs Shasta or Coke vs Jolt.
And that is why I feel piracy is bogus: reputation. If a game developer has a good reputation, is known for making quality games, the game will practically sell itself. Piracy is a constant, known factor. The only way to overcome it is to make a good game, get credit, and sell a buttload of copies.
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