but we're not talking about a UE3 game. We're talking about LBP. The engine was made in-house. Therefore, the cost was just supplies and salaries.
I mean, think of this way, all the cost to make the game is up-front cost. Salaries. Supplies. Sony tells MM. Okay, you got $10 million to make this game. MM takes that money and use it to pay the salaries and building cost.
Game comes out. Let's say Sony sells each copies to stores for $50 per disc. Great. Let's say, per disc, the costs of everything else is $10 (printing, shipping, etc). Okay, that's $40.
So say you sell 500k copies. That's $20 million in revenue. Say they spend $20 million in ads. Now say, after the first round of selling to retailers 500k, the 2nd round they sell just 300k. That's $12 million in revenue.
From that point on, every disc they sell to retailers is pure profit. Once the game is complete, the only thing that takes away from the revenue per disc is the pressing, printing, shipping, and overhead of managing all that. This is where mass-scale economy comes in.
A little generalized, but like I said. From a profit point of view, it's not a bomba as many of you detractors tend to make it out to be.