The GTA V billion

We all read the news of the fastest selling entertainment product of all time: GTA V made a billion on the first weekend. This gets all sorts of media attention and jealousy - and most of them get it wrong.

First: the billion mentioned is retail revenue. That means Rockstar did NOT make a billion as they don't get the full sales price. So what do they get anyway?

First you need to deduct VAT from the price you paid, something around 15-19% depending on country. Your government gets that.

Then retail takes their share, somewhere 10-15% usually, sometimes more, sometimes less. That leaves (very rough calculation!):

$58 -VAT
$49 -15% retail
$46 -5% distributor fees
$33 -$13 MS/Sony license & Production fee, includes BlueRay, Manual & Packaging

So, $33, minus Take2 share as they own Rockstar & paid the hundreds of millions of marketing, so less than half actually arrives at Rockstar.

Considering the game costs somewhere around $200 million they broke even first weekend with that billion - barely. Rest is profit now, but you see that without that record they would have had a harder time to break even. 5 years development time with hundreds of people does cost some serious money (120-200 million depending on country).

So there. Yes they deserve the record, the money, but they don't have a billion yet. For that they need to continue selling strong and maybe ship some add ons (or the PC version!)

So if Sam Houser reads this: great job man, the first GTA since Vice City I enjoy!

1 comment:

Lars Kr├╝ger said...

Thanks for figure this out, Teut!
Considering predecessors wholesale data over complete life-cycle on actual consoles, it should be just a matter of time till they reach their billion :-)