Why do people think buying a game new supports the developers?

[Canadamus Prime]

If I recall how the system works, the manufacturer or in this case the developer makes the product and then retail stores buy it bulk from them or through a wholesaler, either way they then mark up the price of each individual product and sell it to you so they can in turn make a profit. If the retail store runs out of stock then they have to order more which means more money for the developer. So yes, the more new games sold, the more money the developer makes.
It's a trickle down effect.

 

[t3h br0th3r]

When you buy a game new all the money still goes to the store just like if you bought it used. The the store buys a bunch of games from the company that produces the games and after that the store makes all the money so even when you buy a game new none of that money goes to the developers so why do people always think it does?

Are people just misinformed?

http://www.youtube.com/watch?feature=player_embedded&v=5hfYJsQAhl0

Ok, time for a basic lesson in economics.

Retailers more often then not do not produce what they sell. they buy it from suppliers, give it a mark up so they can make a profit, and then sell it.

the more an item sells at retail level, the more the retailer buys from the supplier. Thus buying from retail support not only the retailer, but the suppliers as well.

 

[legend forge]

When you buy a game new all the money still goes to the store just like if you bought it used. The the store buys a bunch of games from the company that produces the games and after that the store makes all the money so even when you buy a game new none of that money goes to the developers so why do people always think it does?

Are people just misinformed?

Ummm... yeah they do get the money. The store buys copies new, which gives money to the developers. When you buy it new from the store you pay off that money plus a little more for their trouble. That way they make profit and money goes to the developers. Used games have a much higher profit margin for the store because they don't have to pay the developer at all, just a few bucks to some schmuck.

 

[Farotsu]

I think it was mentioned somewhere but aside from the royalties, the sales figures does translate into a higher chance for a sequel or another game from the same developers and usually a better paying contract. Just think of a series that comes from a small developer team that grew because it sold and started creating sequels to be sold thanks to it.

 

[Rayne870]

When you buy a game new all the money still goes to the store just like if you bought it used. The the store buys a bunch of games from the company that produces the games and after that the store makes all the money so even when you buy a game new none of that money goes to the developers so why do people always think it does?

Are people just misinformed?

yes everyone is misinformed, you are absolutely right, there is no connection between a store buying something from the developer, marking it up and selling it to a consumer. We should support developers by not buying games and sending them cookies!

 

[ThriKreen]

The Dev sells 100 copies to Gamestop, the Dev gets paid for 100 copies, Gamestop sells the 100 copies, but buys back 20 of them. The next shipment Gamestop wants to still have 100 copies, so now they only buy 80 from the Dev. The Dev gets paid for 80 copies, Gamestop will once again get paid for 100 copies. That is a 20% step down in the money the Dev gets.

Makes sense to me. Also explains why game shops are always trying to push second hand copies of the game on you when your happily in the process of buying a brand new copy.

Not only that, but the publisher will only get reports on the new copies sold, they don't get how many were used sales (obviously, since the retailer will get pressured to reimburse the publisher).

What happens? They'll see that the game has only sold 20% less, and if you project it over time that every 100 sold results in a 20% return (So split 10% new and 10% used), you end up with a much faster rate of declining new sales, even though the game itself is still selling at roughly the same rate. Might not seem like much, but it will eventually be significant enough to result in the developer getting a lower budget for a sequel from the publisher, if that even occurs.

 

[ThriKreen]

We should support developers by not buying games and sending them cookies!

I got sent chocolate. From a fan in Sweden to boot.

 

[CarlMin]

The store wouldn't stock up with the latest games from any company if they didn't thought people would buy it, and if we stop buying new games that is exactly what will happen, which will eventually affect the developers negatively and change the industry.

 

[TheDooD]

You'd best add some argument of your own here friend. You can, and will, get modded and warned for a low content post.

OT: If I remember right, the split on an average $60 game is (roughly):

30%, or $18 to the publisher
15%, or $9 apiece go to the marketing and development team
20%, or $12 apiece go to the console company and the retail store

I'm sure these aren't official statistics, so take it with a grain of salt.

Edit: Source - http://unrealitymag.com/wp-content/uploads/2011/04/game-pie.jpg

I pretty much knew that the workers were getting shafted in this "deal" while the suits just get all rich.

Sorry captcha I don't need your rantscop 295 thank you very much.

 

[Jandau]

When you buy a game new all the money still goes to the store just like if you bought it used. The the store buys a bunch of games from the company that produces the games and after that the store makes all the money so even when you buy a game new none of that money goes to the developers so why do people always think it does?

Are people just misinformed?

Because once a store runs out of a game, they order a new batch from the publisher. The faster they run out, the sooner they need to buy more.

Seriously, are you that misinformed? Or just trolling?

 

[scorptatious]

Um...

Because it does?

It's pretty common knowledge, not sure how you wouldn't know that unless you just got into gaming.

I don't mean to insult you or anything I'm just saying.

 

[Omnific One]

Developers only get 17% of the sales. That's right, the people who poured their effort into the game get less than 1/5 of the sales.

Guess two groups that get more: publishers and the manufacturers.

That's not fair in the slightest.

 

[ThriKreen]

Developers only get 17% of the sales. That's right, the people who poured their effort into the game get less than 1/5 of the sales.
Guess two groups that get more: publishers and the manufacturers.
That's not fair in the slightest.

That's just royalties - you have to remember that the publisher usually funds the developer for the 2-3 years the game is in development as well. Say a studio with 100 people, averaged out the salary to ~$50k (seniors, leads get more; QA, administrative gets less) would work out to at least half a million a year. Add in the costs of the facilities, medical benefits, insurance and such. Oh, and the publisher fronts the costs of marketing and distribution to the retailers too, so yeah, they would get a larger chunk to recoup their costs.

 

[Omnific One]

Developers only get 17% of the sales. That's right, the people who poured their effort into the game get less than 1/5 of the sales.
Guess two groups that get more: publishers and the manufacturers.
That's not fair in the slightest.

That's just royalties - you have to remember that the publisher usually funds the developer for the 2-3 years the game is in development as well. Say a studio with 100 people, averaged out the salary to ~$50k (seniors, leads get more; QA, administrative gets less) would work out to at least half a million a year. Add in the costs of the facilities, medical benefits, insurance and such. Oh, and the publisher fronts the costs of marketing and distribution to the retailers too, so yeah, they would get a larger chunk to recoup their costs.

I realize that, but that is a significant amount. With successful games, the developers get the short end of the stick.

 

[geK0]

Nope, the game companies just pump out copies of a game for absolutely no profit, the stores make all.... that's good business.

 

[geK0]

This is just hilarious. OP HAS to be a troll.

Fail troll is fail.

And I never say that.

Fail troll caused at least one ban and a handful of warnings!

Fail troll is apparently successful!!

 

[rje5]

Developers > Game Store > Consumer

If there are loads of people buying a dev's games then the store has to order more copies in = the dev's get the money for that order.

If you buy a game you are essentially giving a percentage of that money to the dev's.

YOU are misinformed.

*Edit* OP is an idiot.

Not quite. As far as I know the developers get paid the same salary year round, regardless on what they're working on. The more money a game makes (new sales), the more money the PUBLISHER gets. If a game doesn't do well, the publisher may lay off developers, but that's not guaranteed. So buying new does support developers, in a roundabout way. But in reality is supports the publishers more than the developers.

The Developer's EMPLOYEES get paid a salary. The company itself makes money based on its profits. And its those profits that pay the employee's salaries.

The publisher doesn't "own" the developer. The publisher just agrees to market the game and produce copies of it in exchange for a cut of the profits.

I never said the publishers owns the developer. But I'm pretty sure the publisher pays the development studio to make the game, and any profit the game makes from sales goes to the publisher. In most instances the publisher owns the rights to whatever it is the game is about, the developer can't make the game without the publishers permission. So unless I'm misread some information somewhere, the publisher gets the money from the sales.

 

[Brandon Logan]

What.

The developers get more money the more new copies are sold, that's how.

This

You'd best add some argument of your own here friend. You can, and will, get modded and warned for a low content post.

OT: If I remember right, the split on an average $60 game is (roughly):

30%, or $18 to the publisher
15%, or $9 apiece go to the marketing and development team
20%, or $12 apiece go to the console company and the retail store

I'm sure these aren't official statistics, so take it with a grain of salt.

Edit: Source - http://unrealitymag.com/wp-content/uploads/2011/04/game-pie.jpg

Hey look I did. Anyway royalties exist when you buy new games. I on the other hand own a ps2 and gamecube....all games I buy are used...except for pc games but I don't think I've bought those new either. I bought Killer 7 new.....good enough for me.