Originally posted by rtrooney:
And the margins have gone down I bet. If you figure production/marketing costs (overhead) at $2.5 million, and gross profit (pre-tax) percentage at ten percent, then the standard business calculation, overhead divided by gross profit percentage equals the break even point, says that a selling price of $29/unit would require sales of slightly over 862,000 units to break even. That's an almost unheard-of figure in PC adventure games.
Which is why you need world-wide and cross-platform publication to maximise sales. And to make sure that development costs are minimised you also need to ensure that the platforms have as much commonality as possible, which in turn leads to interface decisions that some may prefer didn't happen.