Video Game Law Blog — Forbes: Why Gears of War Costs $60

Forbes: Why Gears of War Costs $60

December 27, 2006 at 2:47 pm - by Dale Dietrich

Forbes provides this article and interactive pie chart explaining/breaking down the cost structure of modern video games such as the blockbuster Gears of War:

Read Forbes Article

View Interactive Pie Chart

Here’s a Summary of the Interactive Pie Chart:

25%/$15 - Art Design
20%/$12 - Programming and Engineering
20%/$12 - Retailer’s Cut
11.5%/$7 - Console Owner Fees (to Microsoft/Nintendo/Sony)
7%/$4 - Marketing Costs
5%/$3 - Marketing Development Fund (print circulars/banner ads, etc.)
5%/$3 - Manufacturing Costs, Packaging
5%/$3 - Licensing Fees (personality rights, character and story licenses, copyrights, trademarks, etc.)
1.5%/$1 - Publisher Profit
1.5%/$1 - Distributor Fees
0.3%/20¢ - Corporate costs (management, overhead, legal fees )
0.05%/3¢ - Hardware Development Costs (Developer kits, demo units etc.)