- last post: 01.01.0001 12:00 AM PDT
Okay, so a new computer/console game costs about $50. The actual disk with the game on it is worth about $.50. Assuming it's an awesome game, and took several years to make, we can assume that a large(maybe) and dedicated team of artists and programmers have worked on it. In the case of Halo the time and effort put in may conceivably come close to what goes into making a feature length film. So advertising, workers, computer equipment, and other basic capital (rent, etc), and profit make up the other $49.50.
However, in the case of Hollywood films, a HUGE number of people are involved who all need to be paid, the advertising campaigns are much more extensive and extravagant, the sets are enormous and expensive, and often travel expenses are sky high just to reach them. What's more, big actors get paid alot more than anyone on the staff of the most prestigious game companies. So ads are more, workers take more wages, and rent can include expensive sets in exotic locations. Also, some movies require a CGI department thats bigger than some game studios. But somehow DVD usually comes in under $20.
So is the profit margin for a gaming company really that large? Or am I missing something?
P.S. They could charge $100 for Halo 2 I'd still buy it, and I'm not advocating piracy here. Just being curious