Why do games cost $60?

December 21, 2006

[url=http://www.forbes.com/2006/12/19/ps3-xbox360-costs-tech-cx_rr_game06_1219expensivegames.html]Forbes[/url] is carrying an article discussing why Xbox 360 games nowadays costs 60 dollars. The highlights are:

-$27 on actual development ($15 graphics and $12 on gameplay)
-$7 goes to Microsoft
-$3 marketing (and an additional 4% of the total)
-$3 manufacturing cost
-$1 for the publisher
-$3 miscellaneous costs
-Then the retailers get 25% profit

And as Bill Nye the Science Guy would say “and now you know!”