Quote:
Originally Posted by Skoshi Tiger
$8,000,000 @ $45 would need arround 178,000 copies to be sold. At the Russian price of $14.00 that would be be 570,000 copies. I know UBiSoft was asking about $80AUD for their download.
I wonder how close they are to breaking even?
I got two copies, the collectors edition and in a rush of blood the steam download (Thinking it would get to me quicker- The Collectors edition turned up first so my second copy was passed on to my brother.
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Please accept my apologies for using your post Skoshi Tiger as an example of the child like innocence on this forum, and please note I am a huge fan of IL-2 and any other flight sim.
Return on Investment (ROI) is generated by profit.
A game sold @ $45 by a distributor (UBI,1C, Steam, JustFlight ... etc etc ..) does not mean that the developer and \ or investor gets all of that money.
They get a share of the profit of that revenue.
Therefore the investor(s) will break even after the profit has met their costs.
However, businesses also apply a discounted cash flow analysis to investments to reflect the relative performance of the investment.
For example, if you had $1million 7 years ago and put it into an investment account that guaranteed x% interest, what would that be worth now?
Software development is a business and that means that money talks ... imho I will be amazed if CloD generates an ROI that means that the investors will stay on board ..
I hope I am wrong.
S!