Author: Steven Schwartz
Date: 14:36:02 10/16/97
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On October 16, 1997 at 17:21:35, Chris Whittington wrote: >It all depends how they sell it. > >1. Sell themselves, normally via a distributer. > >They will have to give 40% to 50% discount probably to the distributer. > >So out of $100, thet will see maybe $50. > >CD's ? Less than a dollar each, but they need to order in bulk for that, >probably they get left with unsold units at the end. Say $2, including >the art on the CD. > >Manual. Maybe $1 or $2. > >Translation: either they get it for free somehow, or it costs $500-$1000 >per language. > >So, after all the crap, they're going to see a good $40. If they get >paid, if the distributer doesn't insist on SOR and so on. > >How may do they sell ? Good question. From 3 units to 500 units to 1000 >units ? If they are very lucky. Do they advertise ? $1000-$2000 a page >at least. Then they normally have a loyal following for uprades at 50% >of the cost.. > >Maybe they get $30,000 after sales, maybe $100,000,. some of them. They >don't look rich when you see them. > >Out of this, PC's, maybe a support programmer. All the general costs of >running a business, fax, phone. > >2. Licence the engine to a product developer. > >The product developer will then either publish himself or licence it on >it far away territories. > >For direct sales by the developer. Maybe the engine programmer will see >10%, because the engine is not finsihed product. > >For licence sales of the finished product, maybe the developer can get >20% of wholesale (this will be mass market, so $50, the wholesale of >this will be around $20. The developer will get maybe $4. You can see >that the programmer won't get rich here unless many many units get sold. >Mass market only works for really big names, and console (PSX, Nintendo) >ports. > >Chris Chris, you forgot the fact that the programmers have to deal with us resellers. They BETTER make a lot to make up for THAT experience!!! Steve
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