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Bit rich coming from a guy who has posted 2 threads total, one of wich is about his transgender Bob..?I hope for more interesting threads
Bit rich coming from a guy who has posted 2 threads total, one of wich is about his transgender Bob..?I hope for more interesting threads
I do however expect that GT6 sales will be drastically less than GT5's, which won't help that position (even if the game was likely made for much less than GT5). Considering the game's already had some sale prices attached to it, and doesn't have the insanely over-priced special editions the last game did, I don't see profits being significantly better, either.
I'm sure you do get it now.
It certainly helps when the alternative argument is hopelessly contradictory. "They are so successful that they can afford to spend money on a ton of advertising and events." "See, they made 500 million in net profit." "Oh wait, that's not even net profit." "Oh wait, that's not even how many they sold." "Oh, wait, the huge amounts of money they spend on advertising and events that I started my entire chain of arguments with is now inconsequential." "Oh, wait, that's still 500 million anyway because of financial consideration from sponsors that wasn't a factor until I brought it up just now."It must be nice to always think you are the smartest person in the room, to always think you know better.
None of this looks like a location where a theoretical 200 million dollars would come from. Though it's cool that you think you can pick and choose what sources you have to follow with your argument. First you get to claim a wholesale price for your argument to be built around with no basis even though two numbers were provided earlier in the thread (that you obviously didn't read before talking about how "gangbusters" PD are) were ignored. Then you get to apply that cost to obviously incorrect sales numbers. Then you attempt to use the fact that you used the wrong sales number for your "calculations" as proof that I was wrong. Then you claim that the price didn't go down when I said it did so your wholesale price still applied. Then you claim that the original number was right anyway even though you used the wrong numbers because the money is coming from "product placement." Now you get to claim Kaz was lying in an interview where he answered a question directly related to that claim.As to all your costs and scuffing off extra revenue, I disagree with you and what kaz says, of course he is going to say that, he can't alienate other car manufacturers. But of course you know better... Yeah I'm sure they just throw cash at GT academy without taking a cent from Nissan. And they also just put adverts for Castrol and Michelin into their own created tracks free of charge. Last week I saw them giving away games outside the local church.
"GT5 hadn't sold 10 million copies anywhere near before GT5 stopped costing $60 in stores." is not a vague suggestion, because it hadn't; and you later helpfully explained why it hadn't in an ill-advised attempt to be clever. "Subtracting development costs from a wholesale price-based revenue number and presenting that as "net profit" completely ignores all distribution, marketing and production costs" is not a vague suggestion. The only vague suggestion I made was my first post in response to you.I like how you only used "vague suggestions" throughout your whole argument but when I do it once you jump all over it.
So I'm confused. $130 million dollars difference between the real best case scenario number using your formula and a number taking all probable costs into effect are "miniscule additional costs?" Or, for that matter, the $200 million difference in revenue between a number using the wrong sales total and a number found using a more correct sales total (that you also provided) that you refuse to acknowledge is a result of me being close minded? Some nice Hollywood Accounting. It's pretty telling that you spent the entire time complaining that I was pointing out the (massive) flaws in your numbers rather than providing my own; but when I do so (and two different sets of numbers, in fact; one to counter your initial statement of "profitability" directly and then a more detailed one more in line with what the profit margin would have been) you basically run away screaming that I have no reason to claim you're backtracking and that I'm closed minded rather than actual rebuking the numbers. Someone once told me that "Blindly belittling facts is for cowards." Interesting how well that applies to you since your numbers were actually challenged.As to my backtracking...HA...nice try, I was just trying to get you to understand why I didn't fully incorporate miniscule additional costs, but clearly you are too close-minded to grasp any concept other than your own.
Yes, I did. Maybe the context was missed as it was a generalisation.
If their budget was $10million per year for the last 7 years, to cover just that portion to break even would be $1 profit from their total sales. Im not speculating on what their total amount of money spent is. Just the money needed to equal the budget over that period of time.
But I do not see pd going bust even if gt6's sales are 'low' for the series. There, I added my piece of mind.
Considering the quite late console cycle related release, it is possible Sony/PD aren’t expecting equaling GT5 unit-numbers in the first place.
As for the time-limited (?) price drop you mention how much of the retailer’s margin was affected compared to Sony/PD’s one? Did the PSN version of GT6 dropped price?
Talking of net "benefits" where goes that retailer’s margin on Sony’s store?
Not to mention DLC they barely scraped the surface with in 5 and is advertised with greater ambitions for the present iteration.
If GT6 is beta-testing anything, I’d be tempted to say it’s a modified business model. And they possibly have the a$$ets to take the risk. As you pointed, only time will tell how perilous the move was.
The information Amar posted was a budget for the past 7 years. GT5 came out late 2010. So how is it 7 years dedicated to just one game? If what hes saying is true, that goes back to 2006; before GT5P was released. Imo, that budget was covering the cost of GT5 & part of 6. If thats correct, and we just take GT5's sales of ~10 million, to equal that budget, they would only have to take in $7 per sale. Its really really easy to think they made a good profit even if what youre saying is true and they spent $70 million on GT5, which I find hard to believe. But Im not employed by Sony or PD, so Im not 100%.Except that's the budget for just one game, released in 2010, and you're looking at 15 years worth of sales to cover only the most recent 7 years work. That's a massive, massive simplification that overlooks so many things I can't list them all.
So I'm confused
Someone (with tremendous intellect) once told me that "Blindly belittling facts is for cowards." Interesting how well that applies to you since your numbers were actually challenged.
It's been a while since I've worked in the games industry, but the way it worked back then for a new game sale:
50% went to retail
10% went to duplication and distribution
15% went to the hardware manufacturer
25% went to the publisher
There were essentially two ways the developer would see some profit. Either the publisher would agree a set development cost and then the developer would get a percentage of the profit over and above that cost. Or the publisher would entirely fund the development, essentially paying all the developers costs until the game was finished, then the developer would be on what amounted to a bonus scheme where the publisher would make regular payments to the developer, depending on sales performance.
Obviously, with digital distribution, these figures will have changed, but I don't think they would be that different these days.
The Sony / PD relationship would fit into the second category. Sony will be entirely funding GT's development by paying all of PD's costs, then will pay them bonuses based on how well the game does.
So, would Sony ever close down PD? Of course they would. They are spending millions on the development of the GT series and have shown that they won't keep spending this money if there is nothing in it for them.
I can't see this happening any time soon, I would have thought GT7 would be key. But I imagine it will happen at some point.
Your numbers are total rubbish. You think PD get $32 out of a $40 game? Seriously?
... since I never disagreed with your point so much as the way you expressed it I see no real need to. What you put in that post is good enough for me.
"Subtract all that from the original number and you have 248 million. Subtract 84 million from that (the "5 years" development, plus another year after that interview, plus another year of post-release support). 164 million."
That is a blatant disagreement with your numbers. Not your point (ie. GT games make a lot of profit). Now that you've provided better numbers and actually backed them with real calculations (and with sources for most of your claims), I don't see as much to object to.I would say that is a blatant disagreement.
You are way out of your league here. First off since PD is a Sony entity they will record all of the sales revenue in their income statement; as well as recording all associated costs on their balance sheet just as Rockstar would before adding in the console costs. Second, The margins described here are for the average game, i.e. Dance Dance Revolution, not a game with the pedigree of Gran Turismo. Go lay down before you hurt yourself.
That's the number for their entire digital advertising budget. Everything from Google ads to those awful flash games and everything in between. The fact that it talks about GT Academy immediately after (and Nissan is the main partner in that and undoubtedly shoulder some of the costs) also suggests that that number and GT Academy are related.
This link only theorizes that the billboards and the like in the game are paid for to be there; and it also provides at least two example theoretical product placement when it is obvious that PD was the one paying to feature the brand (NASCAR and Top Gear) rather than PD being paid to feature them.
This one is the only one that directly relates an advertising campaign to the GT series, and it's similar to the Edge razors thing that was done for GT5; but it doesn't give any number amount.
You didn't say 2.5, but the revenue numbers weren't the ones that were questionable anyway.Final link...It proves that my $2.5 Billion in revenue over 15 years was dead on.
http://venturebeat.com/2010/12/10/f...ys-gran-turismo-games-top-60m-sold-worldwide/
You haven't provided any real citations for why these two things have to be the case. What proof is there that the Gran Turismo name commands smaller retailer margins beyond you insisting that it does? There's nothing proving the idea. Does that also mean that the games that sell similar or better than Gran Turismo are also granted those bonuses?EDIT: I have to add this...in game sponsors has to be up in the $50-$70 Million range, and a game of this stature can command retailers to take less margins
Work in the accounts department of a service industry for a few years before you pretend you know what you are taking about.
100% markup is usual and 200% is not uncommon. Not games, fair enough, but if you can do that in a service industry I can only guess what retail will do. They are the money makers in this.
That Sony, and by extension, PD make a profit is not in doubt, but not as much as you think.
15% if you are third party. PD are wholly owned by Sony Corp. who get 50%, probably plus PD's 15% so it's Sony that see 65% of the money from game sales. PD provide the product, Sony sees the profit.
Well that's nice. But you failed to grasp that GT5P made $150 million if you think that costs were above and beyond that well then please elaborate.I actually read through your links
You haven't provided any real citations for why these two things have to be the case. What proof is there that the Gran Turismo name commands smaller retailer margins beyond you insisting that it does? There's nothing proving the idea. Does that also mean that the games that sell similar or better than Gran Turismo are also granted those bonuses?
Nice attempt at a subject change. I take that to mean that you either are unwilling or (more likely) unable to actually discuss any of the other things I brought up.Well that's nice. But you failed to grasp that GT5P made $150 million if you think that costs were above and beyond that well then please elaborate.
Providing two links to back up the statement which says the game made 100 million dollars in revenue:GT5P
3.5 million units sold at $40 - $32 going to PD after distribution and retail mark-up.
2 million units sold at $30 - $23 to PD.
Total = $146.5 Million
Costs= ($60 Million up to that point)
Probably isn't the best idea. Neither is flipping out when someone questions the links as a result of that.
And with that any attempts to take you seriously are gone (I was seriously trying after your last couple posts). So much for... how did you put it? Finding "some numbers to come to an agreement on".Because I say so. Not good enough? Tough.
I see the "nice" AxeofGod didn't last too long if asking two questions was all it took to set you off again. Interesting that you want to talk about bringing value to the table, since it took you 12 posts to actually provide data that had some sort of meaning.I have yet to see you bring anything of value to the table except pointing out that I must have hard sources(which ^ShadyNader^ points out are extremely difficult to get) in order to make any of my thoughts remotely valid
Thank heavens for that. I hope you enjoy the rest of your membership here. Until our paths cross again.So if you still want to be negative, we are done here
I was about to say, take it to a room. You both seem to want to win the very last net cookie.
I tried. I got one open as of 4 hours ago. I asked for a collaboration on numbers, nothing. Just likes being an antagonist i guess.
Yeah. Forgive me if I no longer think it was a genuine attempt to discuss things behind the scenes.
Why thank you, AXEofGOD!Tornado: You seriously need to check out of this thread. Why don't you go back to bashing people's ideas in the light bulb thread.
Oh yeah and MIgsrzxadvent21^ gets it....
GANGBUSTERS!
So you agree with what I said here? Just saying my two cents on this!Blah blah blah. PD is not going bust. This thread is just a big trap-door! Climb out now and dont look back guys.