Game Development Community

Determining cost

by Mario N. Bonassin · in General Discussion · 03/11/2005 (1:14 am) · 1 replies

I'm curious what is the standard (if there is one) break down of how to come up with a cost of a game? For instance whatever the retail price is of an rpg book, the retail only paid 40% of that cost. The distributor paid about 15-20%. So for a 10$ book the retailer gets 6$ the distributor gets $2 and the author get 2$.

So how would you break down cost determination for computer games?
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Torque Owner Dan -
#1
03/11/2005 (4:55 am)
It probably varies by publisher, type of game and how many games you have sold, but according to GG Publishing FAQ

Quote:
What are the royalty rates?
Royalties are paid on a monthly basis. 50% for non-exclusive, 65% for exclusive. They are paid on a net basis, where credit card fees, chargebacks, and returns are taken out. These fees amount to about 5% of the gross, so a $19.95 game, nets about $19.00, resulting in a royalty of about $9.50 for non-exclusive publishing.