Thanks to Saty for noticing.
EA had previously said in one of their calls that they got around 60% on full price retail games. Mind that retailer margin negotiations vary between publishers, so some small discrepancies are to be expected on that front. Digital is generally static.
Note that 20% of the profit also disappears between the retail's cut and final retail gross margin. This is the licensing fee + manufacturing cost generally.
As a side note, EA also noted that games sold through their own digital store are 95% (think Origin or uPlay for Ubisoft). The reason it's not 100% is they have to handle credit card fees. Anything on Steam/PSN/XBL is going to be 70% though.
EA had previously said in one of their calls that they got around 60% on full price retail games. Mind that retailer margin negotiations vary between publishers, so some small discrepancies are to be expected on that front. Digital is generally static.
Note that 20% of the profit also disappears between the retail's cut and final retail gross margin. This is the licensing fee + manufacturing cost generally.
As a side note, EA also noted that games sold through their own digital store are 95% (think Origin or uPlay for Ubisoft). The reason it's not 100% is they have to handle credit card fees. Anything on Steam/PSN/XBL is going to be 70% though.
Saty said:In yesterday's call, Ubi commented on the margins:
http://edge.media-server.com/m/p/i75gcv6w
at the 26:53 mark.
Basically it's:
Retail $100: 25% cut for retailer, 75% net revenue for Ubi which becomes -> 55% gross margin
DD $100: 30% cut for the store, 70% net revenue for Ubi which becomes -> 70% gross margin