[QUOTE="pimperjones"] None of you guys seems to know how the game industry works. Here are some words from someone who knows.
In order for your dev team to make $$$ you need to follow the industry rules. You pitch game idea, you get advance aka funding on idea from publisher, you make the game, then you get a cut of the net sales, minus the advance aka funding.
It works like this.
Sales X ROYALTEES - Budget (Advance Funding By Publisher) = NET PROFIT for Dev Team.
Okay. So You the Cryptek team or whatever comes up with a brilliant idea like Crysis. So you pitch the idea to the publisher EA. The publisher EA says great. You got a great game idea. So here's 22 million dollars in advance to develop the game and we will give you TOPS 23% Royaltees on the Gross (Royaltees Cap at around 24%) So now with 22 million from EA you make your game Crysis.
Years later
1.5 Million units in Sales = 37 million USD in Gross Sales at (25 USD per sale minus, distributors cut)
37 million X 0.23% (royaltees) = 8 million - 22 million advance = -14 million.
You've just lost 14 million dollars.
As a developer Crysis was a flop, EA made money on their investment, but the Devs must have gotten sponsorship dollars to be laughing. Otherwise they are crying.
People if you don't know WTF you are talking about then keep quiet. Game business is complicated just like film, and I work in film.
P.S Blackbond just got owned again.
Apssei
I have no knowledge in this field i just see some inconsistencies, correct me if i am wrong.
The firing squad article you linked says "Gross income on a 3,000,000 seller = $105,000,000" so shouldn't 1,5 million = $52,500,000 and not 37million like you said?
I don't know if it matters but in greece where i live the game used to cost 50 euros(at that time i think it was about 50*1,53=76$) and i assume the same price was in other european countries,so in that case shouldn't we use another equation for European countries(or asian or whatever) which results in more profit (or perhaps less in other regions) for crytek?
Besides all that, PC games continue to sell well for a long period of time , and i am assuming crysis after the price cut and as more and more people upgrade their rigs it will continue to sell.
Personally i like to play some games for the gameplay alone and some for the gameplay and graphics, for me crysis has very good gameplay for an fps and excellent graphics and in the event the game made profit because it was funded by nvidia (speculations aside the facts so far show that it made a profit because of sales) i really don't care cause i had a lot of fun with the game.
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Also few questions for anyone with knowledge (google didn't help much)
1)Is the distibuters cut always the same and in every country?
2)What exactly are royalties in pc gaming(in google i didn't find an explenation why there are royalties in pc gaming) and why is there a cap?
3)Is it possible that crytek made a different arrangement-contract with EA than the one which the equation suggests? In other words is there a possibility that a different equation alltogether should be used or does every game ever published follow the exact same formula?
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Ti leei re patrida?
As far as Greece and most of EU is concerned console gaming is hugely overpriced with Xbox360/PS3 games retail at €65-€70...its a huge rip off...
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