dream1ng
Smash Champion
- Joined
- Jul 24, 2016
- Messages
- 2,309
I have no idea where you're getting any of these numbers from.TL;DR on that one is that Ultimate made nearly 4 billion in gross across initial release, Plant, FP1, FP2 and all the Mii Costumes without trying to count something impossible like how many people bought a Switch for Smash or accessories. They most likely made 3 billion profit out of that, with the realistic lowest you could go for development costs being between 2 and 2.5 billion, the great majority of it spent during base game development.
First of all, at $60 USD a pop across 25 million copies, that's one and a half billion USD in revenue. And yes, there are import costs in other countries which will inflate their MSRP, and there are sales, but those differences will not equal billions.
Then there's another $55 in the two passes, and to account for stuff that presumably sold in much fewer quantities, we'll add another $5 for paid PP and the costumes, which will mirror base at $60. However, the DLC attachment rate for games really only ranges between maybe 15-35%. Smash DLC is quite popular but it has an absolutely massive casual install base, so I'm going to be very generous and give the DLC a 30% attachment rate of those who spent $60 on DLC, when in reality it's probably less. That's another $450 million. Let's again be generous and bump it up to 2 bil total revenue, half your estimate.
But luckily your estimates for dev costs are also way too high as well. Like, way too high. Like, there have only been three games to surpass dev (& marketing) costs of above 300 million (being Cyberpunk, Star Citizen, and Red Dead 2) and you've set Ultimate development past the billion mark high.
So yes, Ultimate does make hand over fist money considering its revenue against its dev costs being substantially less than you are suggesting, but your numbers are way off, and Smash's lucrative capabilities still don't inherently give the team carte blanche when it comes to spending.
It's almost certainly not a simple lump sum outside of base content, it's probably a smaller initial payment and then back-end profits on the specific character, which is why third-parties prefer being DLC than base, where those kind of divisions are much much easier.getting the green light to use someone's IP or character requires a contractual agreement of an amount paid (either a lump sum of cashola or royalties, most often lump sum)
That's usually how it works these days. Just look at the returning costumes. The first-party ones that were moved to base but the third-parties were retained as DLC and required re-purchasing because they prefer the back-end payment than the alternative. I would imagine it's more lucrative.