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[GDJustin]

I never mentioned GAF by name, but you guys are there by proxy in basically the entire article, since it's primarily about how word of mouth can drive a game like katamari when the publisher isn't going to spend any marketing dollars on it:

http://biz.gamedaily.com/features.asp?article_id=8057&section=toppers&email=

 

[BuddyC]

I was going to make a different thread about this, but.

I don't know if I'd say Katamari succeeded, as there's really no specification as to what it succeeded against. It'll be interesting to see the numbers next month.

 

[Solid]

I'm glad it sold well. Maybe Namco will make a PAL-version of it now? I hope so.

 

[TTP]

Katamary was at Namco's booth during E3 2004? Damn I was probably drunk but didn't notice it.

 

[BuddyC]

 

[TTP]

Ok, I was drunk

 

[BuddyC]

To be fair, it was in a corner. I only found the kiosks once I saw the threads about them, and even then I spent a few minutes combing the booth.

 

[Rhindle]

I'd say wait for some numbers before declaring success. You need to sell a lot of copies to make any money at $19.99.

 

[MetatronM]

I noticed Katamari was featured on the front page of Gamestop.com earlier today. That has to be a good sign.

 

[Ranger X]

Nice article. Glad to see that gaming industry isn't hopeless.

 

[Mr_Furious]

You need to sell a lot of copies to make any money at $19.99.

Not if it's a game originated in Japan, where it's been very successful for Namco and is spawning a sequel. With minimal localization costs and a lean marketing budget, the U.S. release is almost pure profit from the start.

 

[snapty00]

Well, let's assume (rightly or wrongly) that Sony charges about $7 per game on a finished game (including royalties). And let's assume that the retailer gets about $5 per game. And let's assume 70,000 copies were produced, 50,000 of which were sold to customers.

$400,000 - Profit from 50,000 at $20
$140,000 - Loss on 20,000 unsold games (assuming the retailer doesn't take its cut on these)
-------------------------------------------------
$260,000 profit

That's really not much, especially considering other costs to Namco aren't even taken accounted -- such as the cost to create the game itself, to ship the game, to advertise the game (however little it may be), etc.

Of course, this example assumes a lot, but I don't think it's too far from reality.

 

[Jonnyboy117]

Maybe Sony takes different royalties depending on the type of game, deals with the publisher, and the game's MSRP. I doubt any company would let Sony take over 1/3 of their game's retail price.

 

[Kobun Heat]

You know, I don't have the numbers or the exact position, but GameSpot gets our US sales chart updates from EB, and Katamari was on this week's. It was like #15 or close to that. Donkey Konga was on there too. Neither were in the top ten though, so you don't see them on the site.

 

[Catalyst]

Maybe Sony takes different royalties depending on the type of game, deals with the publisher, and the game's MSRP. I doubt any company would let Sony take over 1/3 of their game's retail price.

Hmm...I know that screenname from somewhere...teehee.

 

[Mr_Furious]

Well, let's assume (rightly or wrongly) that Sony charges about $7 per game on a finished game (including royalties). And let's assume that the retailer gets about $5 per game. And let's assume 70,000 copies were produced, 50,000 of which were sold to customers.

$400,000 - Profit from 50,000 at $20
$140,000 - Loss on 20,000 unsold games (assuming the retailer doesn't take its cut on these)
-------------------------------------------------
$260,000 profit

That's really not much, especially considering other costs to Namco aren't even taken accounted -- such as the cost to create the game itself, to ship the game, to advertise the game (however little it may be), etc.

Of course, this example assumes a lot, but I don't think it's too far from reality.

The basis of your assumption is off which throws the whole equation off. Sony and MS have different fees based off what price tiers, the publisher designates. That $7 is closer to what Sony charges for a $50 title so a $10-$20 title would cost significantly less. Replace $7 dollars with $4 and you've got a much different outcome. Also, don't forget that this still means that said game would start off profitable just based off the buy in and not sell through. Many other games take time to recoup their losses before turning a profit. With budget games, publishers usually doesn't care about sell through because these games have a much longer shelf life and buy backs and returns don't really occur. Budget games are priced to sell and they do.

 

[Vieo]

I bought the game last week. I'll probably buy another copy and never open it. 10 years from now, I'll sell it on ebay for maximum profit.