How Many Copies of Halo 3 Must Microsoft Sell?
How Many Copies of Halo 3 Must Microsoft Sell?
So, my question is how many units of the game need to be sold to turn a profit? Well, you need to cover the following:* Advertising - approx. $10-million
* Production Costs - approx. $60-million
* 10% profit to stores
* 2% shipping cost
With this in mind I will make an assumption, Halo 3 has a few different editions and I will assume that all copies sold are the $59.99 standard edition. On this edition of the game with the above approximate figured about $6 goes to the stores and $1.20 to ship it. So that means that Microsoft will be getting $52.79 per unit.
Now, Microsoft needs to cover $70-million in advertising and production costs. This means that at $52.79/game they need to sell somewhere near 1.3 million units to cover these costs. This is just to break even. Microsoft still needs to turn a few million bucks on the game. With a $60-million investment I would assume that Microsoft would want to make at least $100-million in profit. This translates into an additional 1.9 million units.
Now, don't take this as gospel. These are just rough estimates based on some figures I've seen around the web. But, Microsoft probably needs to sell about 3.2 million copies of Halo 3 to make a good return on investment. Luckily, things look good for Microsoft. The pre-orders have topped 4 million alone. Looks like this thing could hit their profit point today. It must me nice to own a pop-culture phenomenon.
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| Submitted By: | hoZt |
| News Posted: | 2 years ago |
| Source: | Mashed Buttons |
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