GT5 cost 60million and counting

[kitch9]

Originally Posted by Neeyik

Even with those sales figures, it certainly won't have generated "quite a bit of profit" if Polyphony have plowed $60 million into GT5 - although publishers get the lion's share of the revenue from the sale of a game, Prologue wasn't a full-price title.

3.5 million disc sales * £15 = £52,000,000, which equals at current exchange rates $86 million dollars. Then add PSN sales on top of that!!

When Prologue made the bulk of its sales exchange rates were much better than they are now!

GT5P was developed and published by Sony owned companies, its fair to say Sony Corp has profited from GT5 already, even if they spent a massive wedge on marketing etc etc, which I don't think they will have done.

[Neeyik]

Originally Posted by kitch9

3.5 million disc sales * £15 = £52,000,000, which equals at current exchange rates $86 million dollars. Then add PSN sales on top of that!!

Subtract from that the cost of disc production, server maintenance, distribution costs, retailer share, marketing, licensing fees to car manufacturers and so on - even if GT5P generated $100 million in revenue, there's no way on Earth that Sony would have made enough money to cover all of the development costs of GT5P/GT5 and make "quite a big profit".

[kitch9]

Originally Posted by Neeyik

Subtract from that the cost of disc production, server maintenance, distribution costs, retailer share, marketing, licensing fees to car manufacturers and so on - even if GT5P generated $100 million in revenue, there's no way on Earth that Sony would have made enough money to cover all of the development costs of GT5P/GT5 and make "quite a big profit".

Wouldn't the licensing fees be part of the total $60 mil costs quoted? I'm guessing PSN sales will have generated another 25% to 33%. GT5P retailed at £25 initially over here, so I did knock a bit off for retailer share etc. Its still going for £15 now.

* Edit * I didn't say quite a big profit, I said quite a bit of profit.....

[Ninja7]

Originally Posted by kitch9

Yup, it sold over 3.5 million worldwide + PSN sales. It will have easily covered costs, plus quite a bit of profit.

Gran turismo 5 has made profit before its even released, which I think is probably a first, there's no wonder Polyphony are going to town with it.

Theres a difference between sold and shipped, GT5p was also largely a pack in game with PS3 consoles, meaning that does not count as profit considering at the time the bundle as a whole was sold at a loss to Sony.

Secondly out of the remainder of those sales youd only have a rough estimate of revenue, and as Neeyik pointed out theres tons of of costs involved.

I severely doubt its covered the costs, its also possible that GT5P profits have already been taken into account with these figures.

[Neeyik]

Originally Posted by kitch9

Wouldn't the licensing fees be part of the total $60 mil costs quoted?

No, because the deal would be a royalty fee - i.e. each manufacturers earns a small % of the RRP - and such things clearly aren't part of the development costs.

* Edit * I didn't say quite a big profit, I said quite a bit of profit.....

You did and I apologise for misreading your remark. I think once GT5 has been released, then Sony will start to see the costs being recuperated and profit generated, but for the moment...well, it wouldn't surprised me in the least bit if Sony are still 'in the red' with regards to GT5/P.

On a related matter, if people want some really bonkers development costs for a game/series, Ubisoft once gave me an estimate of the total costs of creating all of the Assassin's Creed titles they were planning at that stage and they believed a 9 figure sum would be a conservative figure. We're still well short of the amounts seen in the movie industry but then games don't make hundreds of millions of dollars in their first weekend of release.

[Acupuncture]

Originally Posted by epking

well it's a good thing you've been playing Forza3 in the meantime right? right?

[Slammed94]

Originally Posted by kitch9

3.5 million disc sales * £15 = £52,000,000, which equals at current exchange rates $86 million dollars. Then add PSN sales on top of that!!

When Prologue made the bulk of its sales exchange rates were much better than they are now!

GT5P was developed and published by Sony owned companies, its fair to say Sony Corp has profited from GT5 already, even if they spent a massive wedge on marketing etc etc, which I don't think they will have done.

Where do you get your data from? Going by VG chartz , which isnt THAT reliable, it has the game at .5 million..........

http://www.vgchartz.com/games/game.php?id=39761

[bd_braindead]

Originally Posted by Slammed94

Where do you get your data from? Going by VG chartz , which isnt THAT reliable, it has the game at .5 million..........

http://www.vgchartz.com/games/game.php?id=39761

That's portable, not Prologue.

http://www.vgchartz.com/games/game.p...972&region=All

[Slammed94]

Originally Posted by bd_braindead

That's portable, not Prologue.

http://www.vgchartz.com/games/game.p...972&region=All

I knew I was not getting something ;)

cheers

[_ThouGHtlesS_]

wow so many CFOs here!!