Where Does Your $60 Go?

Games today come with that almost unsettling $60 price tag. Most of you probably wonder — where does that $60 go? Steve Perlman, the founder of OnLive, recently spoke at the Design Innovate Communicate Entertain Summit and gave everyone a look at how that $60 gets broken down.

This is where your money goes

As you can see, that $60 gets split up several different ways and in the end the publisher only ends up with a little less than half of what the retail price is. This should also help you understand why GameStop loves to sell used games. They are much more profitable.

Anatomy of a $60 video game [LA Times]

Author: Kreyg View all posts by
I am Kreyg, the Founder and Editor-In-Chief of Hot Blooded Gaming. Check out my Staff Profile. If you have any questions, feel free to email me at Kreyg@HotBloodedGaming.com

11 Comments on "Where Does Your $60 Go?"

  1. kingmartini February 26, 2010 at 21:52 - Reply

    where is the tax part

  2. Boobman February 24, 2010 at 21:09 - Reply

    I don’t think this bad at all. This makes sense for me. I can see why it’s split up in certain places..

  3. Radar38 February 24, 2010 at 21:04 - Reply

    This is interesting. More than half go to people other than the publisher. It’s a nice find.

  4. popotatocakes February 24, 2010 at 20:14 - Reply

    How does rentals play into this (GameFly)?

  5. cynicalbrit February 24, 2010 at 18:30 - Reply

    That seems about right to me. Honestly that’ a reasonable payback for the publisher to get per copy. I imagine it doesn’t cost them $27 or anything close to it, for each copy of the game.

  6. .:Ra:. February 24, 2010 at 17:20 - Reply

    Very interesting stats. I never knew the costs were divided up like this.

  7. MrTastyDDR February 24, 2010 at 17:08 - Reply

    i thought publishers get 50/50…guess i was wrong :P

  8. KR3W619 February 24, 2010 at 12:55 - Reply

    Wow that’s actually way less than i thought publishers and retailers made from a game.

  9. jake1214 February 24, 2010 at 12:54 - Reply

    Very Interesting Kreyg. O never gave much thought as to where my money went, but it’s good information to know.

  10. Craig G. February 24, 2010 at 12:23 - Reply

    It’s kinda sad when you realize how little of the money actually goes back to the developers. Especially when the publishers are taking so much, despite doing nothing but packaging/marketing…

    • bob gray February 24, 2010 at 20:50 - Reply

      This fact saddens the hell out of me too. The developers are the ones who put all the work into the awesome games we play and hardly get any credit or compensation equal to their dedication.