http://lmgtfy.com/?q=video+game+profit+distribution
http://www.ps3blog.net/2010/02/25/where-does-the-60-you-pay-for-a-game-go/
http://www.jacehallshow.com/blog/20110504/how-video-game-money-is-split-where-your-60-bucks-goes/
None of which I'd consider hard sources, but it gives you a feel for rough numbers.
Imari, I agree that it costs money to produce, to maintain, to promote, etc. And I don't doubt that nor contest it. I do doubt that this title is anything other than a very profitable venture, for both Sony and PD.
It may be, it may not.
The next bit depends on a lot of assumptions, simply because to my knowledge it's information that doesn't exist. But I'll explain my assumptions, and you can see if you agree.
1. Working on the assumption that the VGChartz sales numbers are broadly correct. I'll be generous and we'll say that GT6 has sold 3 million copies so far.
2. From both the links above, the publisher+developer cut is about 45%. Given that Sony pays for Gran Turismo to be made, I'm going to take that number to calculate how much money they see back.
I figure this is generous as well, because Sony may well not be thinking of it that way and expects to make back it's investment with the 15-20% usually allotted to developer, and then have it's own profit on top of that.
3. The hard numbers we have for GT5 say that it cost $60 million, although there's speculation that it cost a lot more by the end. GT5 took 5 years, and GT6 took three, so I'm simply going to take three fifths of $60 million. GT6 is assumed to have cost $40 million.
I figure this is an underestimate, I've taken the lowest known value for GT5, and when making GT6 Polyphony had more employees, and more content to license. I'd be very surprised if it cost any less.
4. Average sales price of GT6 at retail. This is a pretty tough one, the discounts kicked in really fast on GT6. I think I'll just calculate a range of average sale prices, because that's easy enough to do.
I figure the real value is going to be somewhere between $40 and $50, but we might as well do $60 and $30 as well.
5. All this is done in US dollars, just because it's easier.
So:
Raw Sales
@$60/copy = $180 million
@$50/copy = $150 million
@$40/copy = $120 million
@$30/copy = $90 million
Publisher+developer cut (Raw Sales x 0.45)
@$60/copy = $81 million
@$50/copy = $67.5 million
@$40/copy = $54 million
@$30/copy = $40.5 million
If my assumption that the average cost is somewhere in the $40~$50 range, then Sony has made about $20~25 million dollars on a three year investment of $40 million. Which is pretty good.
If Sony is thinking the other way, however, and expects to make it's 30% regardless and the cost of the project to be recouped through the 15% developer cut, let's take a look.
Developer cut (Raw Sales x 0.15)
@$60/copy = $27 million
@$50/copy = $22.5 million
@$40/copy = $18 million
@$30/copy = $13.5 million
Polyphony couldn't possibly survive on those numbers, that's a ~$20 million loss. The assumption that they're working with Sony's cut included must be correct, unless Sony is content to use them as a loss leader. Although a loss leader that only sells 3 million copies isn't a very good loss leader.
For comparison, let's do GT5. We don't know average sale price still, but we have fairly accurate sales numbers (~11 million) and a known cost of production ($60 million).
GT5 - Raw Sales
@$60/copy = $660 million
@$50/copy = $550 million
@$40/copy = $440 million
@$30/copy = $330 million
@$20/copy = $220 million
Publisher+developer cut (Raw Sales x 0.45)
@$60/copy = $297 million
@$50/copy = $247.5 million
@$40/copy = $198 million
@$30/copy = $148.5 million
@$20/copy = $99 million
The average sales price of GT5 could have been pretty low by the end. If I had to pick a number off the top of my head, I'd probably say around $30, but anything from $20~$40 could be reasonable.
Still, that results in Sony/PD making somewhere between $40 million and $120 million. That seems good.
Again, for interest's sake:
Developer cut (Raw Sales x 0.15)
@$60/copy = $99 million
@$50/copy = $82.5 million
@$40/copy = $66 million
@$30/copy = $49.5 million
@$20/copy = $33 million
This tends to reinforce the assertion that Polyphony is only profitable because it's a Sony first party studio. I'd find it hard to believe that the average sales price of GT5 was more than $40, and at that level Polyphony itself is only just covering costs after Sony takes it's cut. Much less and they start bleeding money.
But these numbers are for GT5 after 3+ years of sales, so it's not the best comparison.
At two months after release, GT5 was nearing 6 million, and was at 7-and-some million a year after release. I'm going to call 6 million a reasonable guess at the figure at six months, which is roughly where GT6 is now.
GT5@6 months - Raw Sales
@$60/copy = $360 million
@$50/copy = $300 million
@$40/copy = $240 million
@$30/copy = $180 million
Publisher+developer cut (Raw Sales x 0.45)
@$60/copy = $162 million
@$50/copy = $135 million
@$40/copy = $108 million
@$30/copy = $81 million
From memory, price cuts didn't come in as fast for GT5, but that's just my gut feeling. I'm too lazy to look it up.
Anyway, say the average price ended up being the same as GT6, $30~40. Even with the increased budget ($60 million vs. $40 million) Sony/PD is still making somewhere between $20 million and $50 million. At worst they were doing as well as GT6 is doing now, and likely doing a lot better.
Developer cut (Raw Sales x 0.15)
@$60/copy = $54 million
@$50/copy = $45 million
@$40/copy = $36 million
@$30/copy = $27 million
GT5 couldn't even hold it's own head above water in the first six months, so in this respect it's exactly the same as GT6.
TL;DR:
Gran Turismo isn't nearly as profitable for Sony as you'd think, and it's not really profitable for Polyphony at all if you treat them as an independent entity. They only make money because they can count on getting part of Sony's revenue share as well.
GT6 isn't particularly different to GT5 in this respect, once you push all the numbers through. They make a reasonable sum of money for Sony, but what would traditionally be considered the "developer's cut" is only really barely managing to fund the production costs of the game.
This would tend to promote the hypothesis that the game is pushed for other purposes, probably to move consoles. This isn't a new idea, and Gran Turismo has traditionally been very good at helping to shift hardware. This just sort of backs up the idea that this is in fact it's main purpose.
Unfortunately, if this is true then GT6 could well be considered a failure. If profit is
not the main motivator behind the game, and pure sales numbers are, then GT6 is not doing it's job.
While I wouldn't agree with @
xiando that GT6 has been
very profitable, it seems fairly clear that Sony is likely to be making a reasonable amount of money. Even so, it may not be fulfilling the role they have set for it.