Publisher's Cut - ie, the take

[Lostlogic]

Does anyone know of a good resource that shows publisher cuts as a percentage of the wholesale price of games in various channels?

For example, any idea what Microsoft takes to publish games on XBox Live!? Or Nintendo on the Wii?

Thanks!

[Dyno Kid]

Could be wrong but I'm sure i read its 50% for microsoft.

Darren.

[ChrisP]

I expect it varies, possibly widely, between different titles on the same distribution channel. Depends how good each party is at negotiating and on the perceived (pre-deal) value of the product.

[sillytuna]

It does indeed vary, quite significantly in some cases. Platform/digital distribution/territory/publisher distribution options all make a difference.

In the digital distribution sector the figures are simpler and you will find some if you look around I'm sure. I can't discuss the Microsoft/Sony/Nintendo figures but I'd be surprised if they weren't on the net somewhere. They're pretty good though.

A key thing to remember is "of what". A cut of 90% [for you] is no good if it's 90% of nothing. A publisher generally handles all revenue and gives you a cut, so it's up to you to establish the COGS (Cost of Goods) and definitions of Revenue used.

COGS are easily massaged unfortunately but there's no reason why they can't be well defined, despite the excuses some publishers give.

One word of warning - publishers may use subsidiaries for some aspects of publishing, so what to you (and supposedly them) is a COG becomes something very profitable for them and expensive for you.