@duffmanth. I think a third of the cost goes to retailers. Does anyone know how much Walmart/Gamestop make per game sold at $60? Is it $20?
Movies, video games, and music are all purchased on some sort of retail format and can be purchased transfered digitally. All of them are pirated. Two things in common between movies and music that aren't common for video games. Movies and music have more market penetration. Almost everyone watches movies or listens to music. These two formats also have other ways of making money. Movies, unless straight to DVD, they first sell millions at theaters and then later on can make more money being broadcast on television. With music, they make money going on tour.
But then you might say. What about car sales, clothes, etc. Can you pirate cars and clothes? Game manufacturers are fighting lost sales on two fronts. Piracy and used sales. After the first few months, sales on video games drop next to nothing.
Clothes outlets don't care about used clothes because they're already way overpriced anyways. That $30 Nike shirt you saw in the store probably cost $.08. That $5 shirt you bought from some generic manufacturer probably cost $.07. It's pretty much legal slave labor. The clothes manufacturers don't care if you buy your clothes used. They already make a ridiculous amount of money from the new clothes they do sell.
Car manufacturers make money on the sales of replacement parts for vehicles.
The $20 plastic toy that you bought for your kid on Christmas. The crappy design of it was probably thought of in the span of a day. Then the toy was more than likely produced mostly by machine.
Video game developers are actually putting a lot of money into their product before they get anything out of it. Why do you think most developers are starting to do digital games and online flash based games?







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