I feel that people should study these numbers a bit before complaining about game publishers:
Total value of 42-45% of retail is what we normally get from wholesalers. At 1000 copies at $75, that's $75,000, minus the wholesaler discount of 55% leaves $33,750.
We have to assume we will sell most at this number. Keep in mind Clark and I have to share profits w/ WW too. I cannot disclose those numbers and the split though.
Cover--$1,000
Maps and Interior art--reused a bunch, but still was $5,000
Boxes--$1,000
Advertising--$2,000
Printing--$20,000 (guess, based on WL Box set)
Shipping from China--$2,000 or so
you see where this is going.
I fought really, really hard to get 2000 units made, but the sales folks at WW said no-go. The concern is that if we do not sell them all (and our breakeven is about 900 units on 1000 units), we could lose a ton of money.
So the product could potentially -- if everything goes swimmingly, as it has in this case -- bring in $33,750, with explicit costs of $31,000, implying that the publishers might have $2,750 left over to pay for labor.
Simply putting that $31,000 in stocks could earn you that much (less than 9%) in a year, with less risk and no work.
And when you take into account the risk, that's a crazy investment. If they sell 920 copies, rather than all 1,000, they make
zero money, and if they sell just 500, they lose $14,000.