add revenue vs game sales?

[mestevo]

Quote: Originally Posted by Gotmadskillzson

Well ads are a one time fee....... Game sales keeps going. So just based off of that, games sales should be higher Considering Virgin Mobile or old Spice, etc are paying that one time fee to have their ad in all Madden 2011 games, not paying an individual fee for each game that was printed. For example: Let's just say Old Spice paid $500k for an ad spot. Therefore EA will only get that $500k from Old Spice and that's it, since it is just a 1 time fee for 2011 Madden. However EA gets paid everytime 2011 sales from game sales. So $64 a game x 1 million copies sold. Game sales would be higher.

EA isn't collecting sales tax, and only see the wholesale price hit their books not full retail. The ad spots also regularly rotate out, pretty sure I've seen several different sets of ads, some as timely as advertising a TV show 'tonight'. Fees probably vary due to spots and impressions... the number of units they can push new ads to - and the game almost certainly tracks impressions and phones home with that information.

Either way, they're definitely small fish compared to box sales and DLC, without knowing the numbers.

[mestevo]

Quote: Originally Posted by kehlis

This is what he's asking though. Rather than hypotheticals, does anyone know the actual figure. I think we all know how they get paid, he's not asking for the how, but the how much? I'm curious myself. I don't think he's suggesting games sales is less than advertising dollars, but what is the percentage of TOTAL game sales vs. advertising dollars. This question is not a trolling topic, it's merely a discussion topic.

To my knowledge this information has never been made available in any form.

In fact, to quote them, EA "getting much from ad revenue at all. The in-game advertising business hasn't grown as fast as people expected it to

[kjcheezhead]

I was reading this article about the digital content revenue. http://profitimes.com/news/eas-quart...-revenue-rises

Fifa made $100 million on digital content. I'd think it's fair to say Madden did pretty well in this area too. I'll go conservative and guess $30 million.

Madden sold roughly 5.7 million copies. If you give them $40 per copy in revenue it comes out to about $228 million dollars.

Now according to this study done last year, the average game costs as much as $28 million to develop.

$258 million - 28 million nets them $230 million dollars in profit without counting the ad revenue.

Now, according to this article EA spent $10 million in advertising. Madden 11 recieved some backlash, so I'll guess they spent $20 million.

That leaves $210 million dollars minus the NFL's cut. I guess my point is, does the amount of ad revenue really matter? Madden appears to be extremely profitable.

[Exonerated]

Quote: Originally Posted by kjcheezhead

I was reading this article about the digital content revenue. http://profitimes.com/news/eas-quart...-revenue-rises Fifa made $100 million on digital content. I'd think it's fair to say Madden did pretty well in this area too. I'll go conservative and guess $30 million. Madden sold roughly 5.7 million copies. If you give them $40 per copy in revenue it comes out to about $228 million dollars. Now according to this study done last year, the average game costs as much as $28 million to develop. $258 million - 28 million nets them $230 million dollars in profit without counting the ad revenue. Now, according to this article EA spent $10 million in advertising. Madden 11 recieved some backlash, so I'll guess they spent $20 million. That leaves $210 million dollars minus the NFL's cut. I guess my point is, does the amount of ad revenue really matter? Madden appears to be extremely profitable.

FIFA 11 ultimate team is an amazing gameplay experience. MUT is not.

[bxgoods]

Quote: Originally Posted by Exonerated

FIFA 11 ultimate team is an amazing gameplay experience. MUT is not.

Maybe not to you, buT MUT is pretty big and it makes EA a lot of money.
They probably made more money from MUT last year than game sales.

[kjcheezhead]

Quote: Originally Posted by Exonerated

FIFA 11 ultimate team is an amazing gameplay experience. MUT is not.

I agree, which is why I estimated Madden to take in 30% of what FIFA did.

My point still stands, no matter what EA recieved from Old Spice, Doritos, and the pop up ads Madden collects a ton of revenue. Probably not small change, but not where the real money is made either.