Where does the money you pay for video games all go?

Posted by Ronnie Marquez | Posted in Xbox 360 news | Posted on 08-08-2008

Have you ever wondered why video games cost so much? Nowadays they normally cost around $60 dollars upon release. Well, the reality is that making a game is no cheap adventure. The production costs for games now rival some movies. So before you go off swearing at the abhorrent cost, let me lay some knowledge down on you.

In the December 2007 Issue of the Official XBOX Magazine, there was a breakdown of where your money goes when you buy a game. Believe it or not, it doesn’t all go to some bigwig whom is living the high life- that’s only $9 dollars or it. Check out the breakdown for the cost of XBOX 360 games:

Retailer Cut = $12

Microsoft Licensing and Manufacturing =$12

Marketing = $7

Development Costs = $20

Publisher Overhead= $9

Total Cost= $60

[Source: XBOX Magazine]