Videogame Prices: Where Does The Money Go?


Videogame prices are confusing. A standard game goes from anywhere between R600 and R700 these days. In the US the standard price for a game is $60.

Our favorite video game analyst (by that I mean the only one that we actually know) Michael Pachter answers a very good question on this weeks Pach Attack.

Where does all the money for a videogame go, and who gets it?

The answer is really interesting and I have to admit that I was quite surprised to see how the money is distributed. Hit the jump for the video and find out.

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  • uberutang

    So: Game is $60. (R450)

    From that $12 = MS/Sony

    $12 = Vendor (gamestop etc)

    $36 = publisher, etc

    Now that is nice to know… but how does that translate into SA game prices?

    I see no mention of a distrobuter in the pach attach… why do we have them and do they take R150 per game (or around $12)….

    • Nick de Bruyne

      Well I think in places like North America, they don’t have distributors because all of the publishers are based locally. As you said $60 is R450, which mean that there is R150 – 250 that still goes somewhere here.

      I think a good chunk of that extra money goes into the shipping of the stock to SA and any other delivery costs, and the rest will go the the distributor as their cut.

  • Geoff

    Arvind Bhatia of Sterne Agee also does video game analysis. ^_^

  • mitas

    somebody please explain this to me? capped is bout to be busted to cant watch the video …
    ps anybody on mwebs uncapped adsl for R239 ? is it stable

    • Fox1

      Heard it’s the best of the uncapped crowd. Very stable from launch.

      On a side note, Axxess are offering unshaped bandwith at R19/gig

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