Quoted from TheLaw:
Can;t we just get some threads on how the top 100 is bunk?
I'm wondering if the bubble is about to burst.
I dislike when people do this, but it hasn't been said so I feel compelled to knock it off my bucket list.
10 or 15 years ago the quote was $1,000,000 to develop a game. Now with stereo sound and an army of graphics programmers for the LCD, it is probably at least $1.5M to develop a game. You have to factor development in somewhere along with BOM and dealer costs. So if you sell 2000 games of a particular title, that means each game has $750 in development costs before even buying the first part, paying the assembly line workers, electric bill or the dealer's cut.
The way I figure it Stern marks up the LEs and makes back most of the development cost off the LE buyers in order to keep the prices of the Pros and Premiums a little lower and sell more of them. My guess would be closer to what Iceman estimated. The profit level on these games is probably about 10% give or take a little from Stern's end. The more they sell of a given title the better for profits because the development cost is down.
Quoted from captainadam_21:
Who cares. Do you think it costs rolex 10k to build a watch?
Maybe the OP is looking to start making games and compete against Stern? Even then, I'd take a different approach since you won't reach mass scale and efficiency instantly as a new company. Never compete on price out of the gate. Stern launched their backlit frame a week after my website went live. 2 years later, I'm still in business and growing. Why? I focus on value, features, innovation, and customer service.
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