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Metal Gear Solid 5 The Phantom Pain Day 1 Sales Overtakes Avengers 2, But Profit For Konami Still Unsure

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Metal Gear Solid 5 The Phantom Pain is a gorgeous open-world-game with tons of features, hence, it was costly to make with it amounting to over $80 million for development costs alone. The publisher of MGS5 TPP, Konami, may now have evened the costs as the game reportedly grossed $179 million globally on day one sales alone.

According to Adobe Digital Index (via Venture Beat), MGS5 TPP made almost twice of the opening gross of Avengers: Age of Ultron. This proves that video games are still profitable than what many may think.

?The gaming industry is a lot bigger than most marketers realize,? said Tamara Gaffney, a principal analyst and director. ?These games get more social buzz on opening day than most movies do, and the revenue for one of the top games this year outdid the highest-grossing movie start [Harry Potter and the Deathly Hallows Part 2 with $91 million] by nearly double.?

Not All Costs Covered?

Forbes reported early in September that MGSV TPP has already sold 3 million units, however, this doesn?t guarantee that the game has already evened the costs. It would need to sell more than five million copies to break even, the report said.

Many are saying that the achievement of MGSV is noteworthy because it only costed publisher Konami $80 million, while Avengers: Age of Ultron required $250 million to be made.? However, only the production cost of MGSV five months before its release was revealed. The marketing and distribution costs are not yet factored-in.

How much was the total cost for Metal Gear Solid 5 The Phantom Pain? We might never get a firm announcement because it is not normal for video game companies to disclose exactly how much the game costed them, Kotaku reported. When total costs are disclosed to the public, they might also not be accurate, Kotaku said.

?When we do get specific numbers, it is often only the development or marketing costs, which do not necessarily provide a complete picture of a game?s entire budget of development, distribution and marketing costs. Also, specific numbers communicated to the public may not be accurate: like the film industry, it is possible for accounting to play tricks with budgeting to change the appearance of things.?

Some companies spend more on marketing and advertising than developing the game. “In 2009, EA executive Rich Hilleman indicated in a speech that his company “now typically spends two or three times as much on marketing and advertising as it does on developing a game,” Kotaku reported.

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