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Archived from groups: comp.sys.ibm.pc.games.action (More info?)
Here's something interesting that I found while searching for HL2 sales
figures.
http://www.bized.ac.uk/current/leisure/2004_5/081104.htm
"...For example, the original Half Life game was released by Valve to its
publishers for a down payment of only $30 000 with an additional $800 000
paid as a further advance. Half Life has won innumerable prizes and awards
and in 2001, three years after its initial release, one of the game's
spin-offs, Half Life Generation still reached eighth place in PC gaming
sales in the UK. Advance payments received by Valve are dwarfed by the total
sales of the whole product.
The high development costs associated with creating a best-selling game
require large advances to be paid to game developers. To recoup these
advances, publishers such as VUG need the games they fund to sell greater
numbers in the retail market. Once they have made enough revenue they can
start to pay royalties to the developers. Increasingly, only 'hit' titles
produce royalties for developers, so they often find themselves unable to
fund new products in order to grow their business.
....If Half Life 2 is sold through traditional stores, Valve receives about
30% and VUG 70% of the revenue. But if the game is sold through Steam, Valve
would receive 70% and VUG 30%. Clearly, tensions between game developer and
distributor can be expected to simmer away."
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The developer get's 30% if sold thru a store?!?!?! Wow! Organized crime
is alive and well in the world. I wonder if these percentages are close to
what the music industry uses?
Here's something interesting that I found while searching for HL2 sales
figures.
http://www.bized.ac.uk/current/leisure/2004_5/081104.htm
"...For example, the original Half Life game was released by Valve to its
publishers for a down payment of only $30 000 with an additional $800 000
paid as a further advance. Half Life has won innumerable prizes and awards
and in 2001, three years after its initial release, one of the game's
spin-offs, Half Life Generation still reached eighth place in PC gaming
sales in the UK. Advance payments received by Valve are dwarfed by the total
sales of the whole product.
The high development costs associated with creating a best-selling game
require large advances to be paid to game developers. To recoup these
advances, publishers such as VUG need the games they fund to sell greater
numbers in the retail market. Once they have made enough revenue they can
start to pay royalties to the developers. Increasingly, only 'hit' titles
produce royalties for developers, so they often find themselves unable to
fund new products in order to grow their business.
....If Half Life 2 is sold through traditional stores, Valve receives about
30% and VUG 70% of the revenue. But if the game is sold through Steam, Valve
would receive 70% and VUG 30%. Clearly, tensions between game developer and
distributor can be expected to simmer away."
----------------------------------------------
The developer get's 30% if sold thru a store?!?!?! Wow! Organized crime
is alive and well in the world. I wonder if these percentages are close to
what the music industry uses?