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#Actualfrob

Posted 22 November 2012 - 03:00 AM

I just want to know the % amount spent on advertisement and if that is typically the 'primary' expense, it doesnt have to be actual amounts either.

Software development costs are usually less than 1/3 of the total costs.

As you pointed out, advertising is probably the biggest single expense. In one game we had a $2M development fund, and I learned they spent $3.5M on advertising.

I've seen similar ratios on expensive games, with development costs in the tens of millions and non-development costs about 2x more than that. A global advertising blitz in game magazines, web banners, in-store displays, promotions, and so on gets expensive very quickly. Just getting in-store product placement can cost millions by itself.

In the grand scheme of business, writing software is the easy part. Making it profitable is difficult.

#1frob

Posted 22 November 2012 - 02:57 AM

I just want to know the % amount spent on advertisement and if that is typically the 'primary' expense, it doesnt have to be actual amounts either.

Software development costs are usually less than 1/3 of the total costs.

As you pointed out, advertising is probably the biggest single expense. In one game we had a $2M development fund, and I learned they spent $3.5M on advertising.

I've seen similar ratios on expensive games, with development costs in the tens of millions and non-development costs about 2x more than that.


In the grand scheme of business, writing software is the easy part. Making it profitable is difficult.

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