When you buy your favorite new video game and fork over $60 for it, even wonder where that money actually goes?
Here’s a hint: not to the gnome living in your basement.
According to a Los Angeles Times report citing a slideshow OnLive founder Steve Pearlman shown at last week’s Design Innovate Communicate Entertain Summit in Las Vegas, it breaks down like this.
Make sense? I think it’s likely accurate. I just find it kind of interesting how $7 covers expenses for games never even sold. But I guess that has to be done.
Also, a retailer making 25 percent of a game’s cost seems quite substantial and pretty much explains how Target, Wal-Mart, GameStop, etc, can drop prices on new releases…and still make money.