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How To Make More Cash From One Game Than 10 James Bond Films (bloomberg.com)

"Red Dead Redemption 2" broke records in its first three days on sale, pulling in more than $725 million in worldwide retail sales and achieving the biggest opening weekend in the history of entertainment, developer Rockstar Games announced. Here's a story from Bloomberg Businessweek that goes behind the scenes: In a compensation deal unique to the video-gaming industry, Sam and Dan Houser, the brothers responsible for Grand Theft Auto, will get the bulk of an expected $538 million in royalties Take-Two Interactive Software will pay to all employees for this year, according to an analyst. That's thanks in large part to their latest title, Red Dead Redemption II, due Friday. The British-born brothers and a few key insiders share half the profits of Rockstar Games, the Take-Two subsidiary that makes both titles, according to a lawsuit filed by a former employee. Last year, Take-Two distributed $383 million in what it called internal royalties. More than 2,000 Rockstar employees receive bonuses, a company spokesman said. Take-Two said its compensation programs allow employees to join in the success of software they help develop. The company declined to say how much of it went to the Housers. Gerrick Johnson of BMO Capital Markets estimated the brothers received the bulk.

"As long as Grand Theft Auto is chugging along, no one seems to care," Johnson said. The Housers' haul shows just how far video games have come since the days of Pong and Space Invaders. The industry is expected to bring in $138 billion this year, according to market researcher Newzoo. Red Dead II will sell at least 15 million copies by the end of the year, analysts said, at a retail price starting at $60 for the base package.

79 comments

  1. how? don't get 'woke' by sittingnut · · Score: 0, Flamebait

    simple. cater to those who pay the "cash", ie fans especially, and not to sjws.

    1. Re:how? don't get 'woke' by Anonymous Coward · · Score: 0

      Someone's forgotten just how swiftly Rockstar crumbled in the wake of the Hot Coffee mod "controversy".

    2. Re: how? don't get 'woke' by Anonymous Coward · · Score: 0

      Wow, you people really do think that everything is about your own stupid little agenda, don't you?

    3. Re: how? don't get 'woke' by Anonymous Coward · · Score: 1

      No. We just don't like seeing everyone bend to the agenda of the loudest squeaky wheels. Want to be a snowflake? Be one. Be the best one you can be. But stop demanding everyone else think and act like you.

    4. Re:how? don't get 'woke' by stealth_finger · · Score: 1

      Someone's forgotten just how swiftly Rockstar crumbled in the wake of the Hot Coffee mod "controversy".

      That wasn't an sjw thing that was an american sensibilities thing. Violence, swearing, racism is fine but a sex is a big no no. If it was and sjw thing they would've jacked the whole dating thing, or added a bunch of same sex or 52 different gender options or something.

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  2. Pfffff by Bobrick · · Score: 5, Funny

    That's nothing, Star Citizen made about 200 million so far without releasing an actual game, beat that Rockstar!

  3. Surprise by Anonymous Coward · · Score: 0

    Entertainment makes money. Silly msmash. Assuming everyone should give their time but get no money in return.

  4. Re:Garbage games for garbage minds. by Bobrick · · Score: 1

    I will agree with you the moment you step off my lawn.

  5. Adjusting for Inflation? by Anonymous Coward · · Score: 0

    How To Make More Cash From One Game Than 10 James Bond Films

    Back your claim up with numbers, adjusted for inflation. Note that the source is Bloomberg, who recently released the Chinese motherboard chip hack article.

    1. Re:Adjusting for Inflation? by sexconker · · Score: 1

      How To Make More Cash From One Game Than 10 James Bond Films

      Back your claim up with numbers, adjusted for inflation. Note that the source is Bloomberg, who recently released the Chinese motherboard chip hack article.

      The top 10 James Bond films, adjusted, got about 3.6 billion domestically combined. While the big boy Skyfall brought in $1.1 billion worldwide, it cost $200 million to make, at LEAST $200 million to advertise, and the studio gets only a small fraction of the ticket sales. Remember, it's not (1100 - 200 - 200) * percentage, it's 1100 * percentage - 200 - 200.

      While the percentage take on ticket sales is larger in the foreign box office, that's changing. And the foreign box office is only really relevant for the newer films - the ones with the massive production budgets and marketing spends.

      https://www.boxofficemojo.com/...

      Meanwhile, Pokemon GO has pulled in over $2 billion, almost all of it profit. Take away the 30% Google/Apple tax and you're still at $1.4 billion. Development and running costs are another 2 significant figures away.

    2. Re:Adjusting for Inflation? by Cederic · · Score: 1

      The top 10 James Bond films, adjusted, got about 3.6 billion domestically combined.

      The comparison is on opening weekend. How much did they take on their opening weekends combined?

    3. Re:Adjusting for Inflation? by sexconker · · Score: 1

      I don't know, click the link and then click into each title and look it up.

      My point is the AC's complaint is moot. Even if you take the TOP 10 James Bond films (by gross ticket sales), adjust for inflation, and add them up, we can easily demonstrate that a single video game can generate more profit.

      I don't see why anyone would limit the idea to opening weekends, especially since video games are extremely front loaded and movies have a longer and bigger tail, especially if the foreign release comes after the domestic release.

    4. Re:Adjusting for Inflation? by Ranbot · · Score: 1

      My point is the AC's complaint is moot.

      Agreed.

      I don't see why anyone would limit the idea to opening weekends, especially since video games are extremely front loaded and movies have a longer and bigger tail, especially if the foreign release comes after the domestic release.

      Evidence? Because I would expect video games to make more money than movies over time with DLC add-ons, and many PC players wait for Steam sales. Then again, developer profits from console game sales probably are more front-loaded and then shifts to used game resellers, so maybe the movie theater/home video/streaming cycle is longer and more profitable. But you can't do add-on DLC for movies though... A hit video game becomes a platform that can be expanded with DLC for more revenue, even if the original game was purchased used. A hit movie is released and then it's back to drawing board to try to make another hit movie.

  6. Re:Garbage games for garbage minds. by rogoshen1 · · Score: 2

    go play Witcher 3, and see if you still have that opinion.

  7. I'm not surprised, from the demos I saw.... by King_TJ · · Score: 5, Insightful

    Once in a while, game developers put together a "perfect storm". In this case, from the demos I saw, you've got a title that ticks a whole lot of boxes for people. First off, you're going with the Country Western theme; a genre that's stood the test of time, yet is underserved in the world of video games. (And look how often a game in this genre was little more than a fixed shooting gallery type offering, vs. an open world you could explore.)

    Second, the graphics for this one looked excellent. Again, I think we've all seen our share of games that do a good job imagining space travel with various types of craft, or auto racing games. But there's something that still gets people's attention when you do a good job simulating animals like horses, running around the open land. (The Witcher 3: The Wild Hunt, did a pretty respectable job of this and I'm convinced it's one of things that made people "ooh" and "ah" over the title, propelling sales.)

    It has pedigree too, coming from Rockstar Games. They've done so much with the GTA franchise over the years that you feel like you won't be let down by such things as poor quality acting/dialog, or a lack of interesting things to see and do in the virtual world they created for you.

    As I've gotten older, I've gotten really selective about which games I'll buy or spend any time playing. I only have so much free time to waste on computer games, for starters. But I've also just gotten jaded, as a gamer from back in the 1980's through the present. So many games come out and just remind me of something else I played before, so I take a pass on them. I'd have to say this is one I'd put on my short list to consider buying, along with Fallout 76.

    1. Re:I'm not surprised, from the demos I saw.... by Anonymous Coward · · Score: 0

      You mean Fallout: Rust

    2. Re:I'm not surprised, from the demos I saw.... by alvinrod · · Score: 2

      I'd have to say this is one I'd put on my short list to consider buying, along with Fallout 76.

      This game wasn't really on my radar, but maybe I'll check it out. After I get through the pile of other games that I have yet to play.

      However, I'm not touching Fallout 76. They pretty much stripped out everything that I enjoy in a Fallout game to make an online shooter. I'm guessing that they were aiming for something like Destiny (which I haven't played, but am aware of) instead of a traditional Fallout game. Then again, Bethesda isn't very good at those and Fallout 4 was utter crap compared to New Vegas. They should really just let Obsidian make those so that they can concentrate on other stuff.

    3. Re:I'm not surprised, from the demos I saw.... by DarkRookie2 · · Score: 2

      Those above, and the fact the first RDR was a beloved game by those who played it.

      Bit off topic, but why aren't they releasing this on PC. I could see if it was on the 360 and PS3 as well, but it ain't

      --
      http://progressquest.com/spoltog.php?name=Son+Of+Son+Of+DarkRookie
    4. Re:I'm not surprised, from the demos I saw.... by EvilSS · · Score: 1

      Those above, and the fact the first RDR was a beloved game by those who played it. Bit off topic, but why aren't they releasing this on PC. I could see if it was on the 360 and PS3 as well, but it ain't

      If I were a betting man I'd say you will see the PC version in Spring 2019.

      --
      I browse on +1 so AC's need not respond, I won't see it.
    5. Re:I'm not surprised, from the demos I saw.... by Anonymous Coward · · Score: 0

      Don't have any evidence but if I were to guess Sony probably paid Rockstar x amount of money to delay release on other platforms.

    6. Re:I'm not surprised, from the demos I saw.... by Anonymous Coward · · Score: 1

      I wonder how overworked the development team was, and for how long.

      And how much of that 7 million THEY are gonna get.

    7. Re:I'm not surprised, from the demos I saw.... by NG+Resonance · · Score: 1

      Don't bet on it. The first game was never released on PC. All you can do is stream it, and that arrived years later.

    8. Re:I'm not surprised, from the demos I saw.... by Anonymous Coward · · Score: 0

      I play Angband. Occasionally, I play iMoria, which I used to play at the University of Washington a BILLION YEARS AGO.

    9. Re:I'm not surprised, from the demos I saw.... by Darinbob · · Score: 1

      Modern games have drunk the koolaid and they all have "exclusives" now designed to sell consoles rather than sell the game itself.

    10. Re:I'm not surprised, from the demos I saw.... by UnknownSoldier · · Score: 2

      > but why aren't they releasing this on PC.

      To (artificially) prop up sales on consoles. i.e. Pay if you wanna play.

      It will probably come to PC a year later, much like GTA V.

    11. Re:I'm not surprised, from the demos I saw.... by Gabest · · Score: 1

      It said it broke the record in only three days. Games don't get cracked that fast.

    12. Re: I'm not surprised, from the demos I saw.... by Anonymous Coward · · Score: 0

      I watched some walk-throughs of the game. Very pretty but seemed to be a very linear, guided story with episodes of shooting and punching interspersed amoungst what looked like one long cut-scene. Oh, you can ride a horse and collect plants and stuff.

    13. Re:I'm not surprised, from the demos I saw.... by dunkelfalke · · Score: 2

      Yep, same here. Fallout 76 will be the first Fallout game I won't buy.

      --
      "It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap
    14. Re:I'm not surprised, from the demos I saw.... by Cederic · · Score: 1

      Nothing to do with piracy. They want people to buy on console and not on PC.

      In a year a surprisingly large number of those console purchasers will buy a second copy on PC so that they can enjoy a superior gaming performance. Other PC gamers will buy the game and enjoy it for the first time.

      Less cynically, there are enough differences between the platforms that there's sense in focussing the delivery team on the console releases and only after that turning their attention to the PC version. That lets them pace the work out better and also assure that they don't release a shitty console port on PC.

      I'd rather wait and get a great game than get a compromised mess.

    15. Re: I'm not surprised, from the demos I saw.... by Cederic · · Score: 1

      I haven't played it but that doesn't match what I've heard about the game. I thought it was an "open world" type game in which you can explore and engage in shooting/punching at will.

      That it also includes a linear primary story may explain your perception, but I strongly suspect that story can be engaged largely as the player chooses, with plenty of time spent doing other things in between.

    16. Re:I'm not surprised, from the demos I saw.... by RavenLrD20k · · Score: 1

      Not to be a Debbie Downer... but Obsidian is on Microsoft's radar for acquisition to be an XBox exclusive studio; so that may not be a viable future plan for Bethesda. One Source of many.

    17. Re:I'm not surprised, from the demos I saw.... by Anonymous Coward · · Score: 0

      Don't bet on it. The first game was never released on PC. All you can do is stream it, and that arrived years later.

      Let's just say it's a pretty safe bet.

    18. Re:I'm not surprised, from the demos I saw.... by s_p_oneil · · Score: 1

      "To (artificially) prop up sales on consoles."

      There are enough valid and compelling reasons to develop for console and not PC that I doubt that thought was even on the radar.

      The first one that comes to mind would be that game development and testing is significantly faster, easier, and cheaper for consoles. The company only has to make it work well, make it look good, optimize it, and test it for one platform. They can bring the game to market faster at a lower cost, and if it's successful enough on consoles that porting it to PC's would be sufficiently profitable, they can hand the game off to a maintenance team to spend the next year tweaking and testing it on 100+ different video cards and PC/laptop configurations while the key designers and developers move on to the next big thing.

  8. How to make more money from 1 James Bond movie by Anonymous Coward · · Score: 2, Interesting

    Than 10 video games. Pick 10 video games that made less than your movie to compare to.

    1. Re:How to make more money from 1 James Bond movie by Bobrick · · Score: 1

      I will understand your point once you convert all of that to Librairies of Congress.

    2. Re:How to make more money from 1 James Bond movie by Anonymous Coward · · Score: 0

      Impossible, Libraries of Congress are a metric measurement for volume. For this case we need to use nuclear bombs (or for you non metric folks football fields).

    3. Re:How to make more money from 1 James Bond movie by Anonymous Coward · · Score: 0

      Yes, but what is that in Olympic swimming pools?

  9. "responsible for Grand Theft Auto" WTF? by Anonymous Coward · · Score: 3, Informative

    No they were not. Typical American bullshit history revisionism. Grand Theft Auto was conceived by Mike Dailly and the team at DMA Design, it had nothing to do with Rockstar Games back then, and just because they _currently_ own the franchise and the last inception of it, it does not mean two money-counters are "responsible" for it.

    1. Re:"responsible for Grand Theft Auto" WTF? by ChoGGi · · Score: 1

      Considering GTA came out in 97 and that bloomberg article says the brothers were hired by t2 in 98, probably just the reporter being lazy.

    2. Re:"responsible for Grand Theft Auto" WTF? by Anonymous Coward · · Score: 1

      The first two games barely count. The wins started with GTA III. I don't know if Mike Dailly did that or not, but, if not, that's the person. Maybe it's Don and Ben Houser

    3. Re:"responsible for Grand Theft Auto" WTF? by Anonymous Coward · · Score: 0, Informative

      American revisionism? The people doing the revising are Irish, from Ireland, working at an international company not based in America.

      Get out of here with your nationalist bigotry and take the people that gave modpoints to those lies with you.

    4. Re:"responsible for Grand Theft Auto" WTF? by mjwx · · Score: 2

      No they were not. Typical American bullshit history revisionism. Grand Theft Auto was conceived by Mike Dailly and the team at DMA Design, it had nothing to do with Rockstar Games back then, and just because they _currently_ own the franchise and the last inception of it, it does not mean two money-counters are "responsible" for it.

      Yep, I remember the original top down GTA which was quite good for its day (95 IIRC) and it was released by DMA. Rockstar bought them up later and they still produce GTA from their Scotland offices (as Rockstar North).

      DMA also made Lemmings.

      --
      Calling someone a "hater" only means you can not rationally rebut their argument.
  10. And more entertainment too by SuperKendall · · Score: 1

    If you think about how long you could be playing this, you'd also get more pure hours of entertainment out of this game (and lots of other large scale games) than two James Bond films.

    I didn't play the first Red Dead and probably will not play this one but it looks like they did a pretty impressive job. I wonder if they did riding as well as Horizon Zero Dawn did... I do like from videos I saw how you can fall off the horse.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:And more entertainment too by Cederic · · Score: 1

      Two? Try 10.

      Many players will get over 40 hours of entertainment from these games. Some will get several hundred.

  11. Just imagine... by Anonymous Coward · · Score: 2, Insightful

    How much they would have made if they didn't leave us PC users out in the cold.

    1. Re:Just imagine... by Anonymous Coward · · Score: 0

      Mod this the fuck up

    2. Re:Just imagine... by tepples · · Score: 1

      It might even be less, as infringing copies of the PC version would have substituted among some people for lawfully made copies of one of the console versions.

    3. Re:Just imagine... by Gabest · · Score: 1

      Most people never payed for any James Bond movies either.

    4. Re:Just imagine... by Anonymous Coward · · Score: 0

      probably less. PC would cannibalise console sales while increasing support and development costs and I say that as PC gamer. This type of game is simply going to do better in the locked down world of a console.

    5. Re:Just imagine... by Cederic · · Score: 1

      That's bollocks. "This type of game.." like Mad Max, Middle-earth: Shadow of Mordor, Saints Row or even GTA.

      All have high and very profitable PC sales.

      Expect to see RDR2 on PC next year, maybe 2020.

  12. Re:Garbage games for garbage minds. by Anonymous Coward · · Score: 1

    World of Warcraft had soul. The soul of anyone who tried playing it.

  13. For me the bigger news by rsilvergun · · Score: 1
    was this part:

    In a compensation deal unique to the video-gaming industry, Sam and Dan Houser ... will get the bulk of an expected $538 million in royalties Take-Two Interactive Software will pay to all employees for this year

    Video game makers need to unionize.

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    1. Re:For me the bigger news by Anonymous Coward · · Score: 1

      Which is why they need to unionize. Leaders "take the risk" but the rank and file are the ones sacrificing their lives when crunch time comes.

      > and the industry will be starved of talent

      The industry is already starved of talent because of depressed salaries versus what people will pay you to make stupid web apps. The industry has been chewing up and spitting out fresh grads for the past 20 years. Show me a "lead developer" in the games industry with more than 15 years of experience, and I'll show you two with barely five.

    2. Re:For me the bigger news by Anonymous Coward · · Score: 0

      >that same group of employees can't make anything but garbage
      Who put +1 Interesting on something when the opposite is constantly being demonstrated? If you think a studio's inhabitants are fungible I have a Halo franchise to sell you.

      Christ, you should see how Final Fantasy circles argue about how FF## having blah blah character design or blah blah music or blah blah writing arc. And that's them bitching about the staff in another country, about as removed from anglo-saxxon English as you can get.

      That's how they're scrutinizing the FF7 remake. They watch the job postings for it. "We need a monster concept person". They watch when a person is lost/replaced. They spot key names of the people who actually make X awesome, and if they're coming or going.

      It's better data than the promotional lip service you'll get from the precious leaders.

      "Hey fellow gamers." *sits in backwards chair* "I'm here to rap about our latest dev blewg. Watch this youtube commerc- uh, trailer of prerecorded footage, which is not a bunch of manufactured bullshots." You can google the word, but I think the context gives it to you.

      Suits are the ones who walk away because of money. Uematsu's body starts to fall apart and he says he just needs a break.

      Part of the attraction to the entertainment industry is that it's as close as you can get to a product that forces corporate into putting profit second. Sometimes, you can almost believe that you, the consumer, are not an obstacle (something that must be satisfied, placated, defeated) in the way of their objective, but their genuine objective itself.

      In fact, some of the more naive employees (MORE LIKE EMFAILYESS M I RITE) are out to create something that makes people happy. How absurd! We aren't running a charity, Mr. Cratchit!

    3. Re:For me the bigger news by 91degrees · · Score: 1

      They need to admit there's some sort of problem first.

      After a couple of years of promises to deal with the work-life balance issue I decided to quit the industry. All my colleagues seemed okay with the unpaid overtime though.

  14. Re:Garbage games for garbage minds. by chispito · · Score: 2

    Real games stopped being made long ago. Games that had soul.

    Like Interstate 76? Or do you mean something else by "soul?"

    --
    The Daddy casts sleep on the Baby. The Baby resists!
  15. Re:Garbage games for garbage minds. by Anonymous Coward · · Score: 0

    Hey Stampede, how about a poem?

  16. Sam and Dan Houser by Calydor · · Score: 2

    Okay, be honest. How many people read those names as Sam and Dean?

    --
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    1. Re:Sam and Dan Houser by Anonymous Coward · · Score: 0

      I read it as "Sam and Max", which probably dates me as a gamer.

    2. Re:Sam and Dan Houser by Anonymous Coward · · Score: 0

      Is this some kind of weird Quantum Leap reference? e.g. Sam Beckett (Scott Bakula) and Al (Dean Stockwell).
      Otherwise I have no idea who you're talking about.

    3. Re:Sam and Dan Houser by Calydor · · Score: 1

      Supernatural reference.

      --
      -=This sig has nothing to do with my comment. Move along now=-
    4. Re:Sam and Dan Houser by Anonymous Coward · · Score: 0

      Umm...you mean Jan & Dean?

    5. Re:Sam and Dan Houser by Thelasko · · Score: 1

      Okay, be honest. How many people read those names as Sam and Dean?

      Nope

      --
      One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
  17. Bad Comparison by NicknameUnavailable · · Score: 1

    Movies always run negative so they don't have to pay actors royalties.

    1. Re:Bad Comparison by Anonymous Coward · · Score: 0

      Hollywood will tell you that is fake news. Movies are burdened with massive distribution and advertisement costs. Do you know the real costs of making a digital copy of digital movie?

  18. guys, its not that much by Anonymous Coward · · Score: 3, Insightful

    725 million, split among 2000 employees, assuming the game took 4 years to make, is only 90k per employee. This barely covers salaries.

    1. Re:guys, its not that much by Anonymous Coward · · Score: 0

      It more or less covers all expenses and it's only been released for a few days. They probably sold around 10 million copies, with a mix of the three different versions that cost either 60$, 80$ or 100$.

      https://en.wikipedia.org/wiki/List_of_best-selling_video_games

      GTA5 is one of the best selling game ever, only Tetris and Minecraft have sold better. So they probably stand to sell an order of magnitude more copies of RDR2 in the coming years.

    2. Re:guys, its not that much by bloodhawk · · Score: 3, Interesting

      covering 4 years of salaries for 2000 people in the first couple of days of sales I would say is pretty fucking huge.

  19. +5 funny by Anonymous Coward · · Score: 0

    "But I've also just gotten jaded, as a gamer from back in the 1980's through the present. So many games come out and just remind me of something else I played before, so I take a pass on them. " and you tell us this just before you say you consider buying fallout 76, basically a crafting open pvp just like 100 of them, rust, ark or similars.

  20. Make a good game - ... by Qbertino · · Score: 1

    ... make everybody happy *and* obscene amounts of cash on top of that.

    Gee Wizz, who would've thunk that?

    Extra bonus karma points for Rockstar execs who kick some EA officials in the balls at the next E3.

    --
    We suffer more in our imagination than in reality. - Seneca
  21. Re:Garbage games for garbage minds. by Anonymous Coward · · Score: 0

    As someone that has been a gamer for over 30 years I can say you are completely full of shit. Sure there is plenty of shovelware and garbage aimed at mass market. But there is far more games with "soul" then there ever was 20 or 30 years ago, yes they may not be the big sellers or well known by people like you but they exist in huge numbers.

  22. Re:Garbage games for garbage minds. by Anonymous Coward · · Score: 0

    You obviously haven't been paying attention.

    Red Dead made more money in it's first three days, not just out of all video games, but out of all forms of entertainment sold. GTA broke the same records years ago.

    Think about that, this isn't just the highest grossing video game, it made more money than any movie, book, or music album release.

    In other words whatever form of entertainment you enjoy and think is so much better than video games, whatever that happens to be, did not sell as well or make as much money as these two games.

    They have had the most success out of anything you could possibly believe is "better"
    You are literally a fraction of a fraction of a fraction of a percent of a group of people that think that way, and frankly that just makes your opinion a freak rounding error.

  23. Re:Garbage games for garbage minds. by Anonymous Coward · · Score: 0

    if you equal 'making money' to 'success' perhaps...
    Luckily that's a world I choose not to live in.

  24. Re: Garbage games for garbage minds. by Anonymous Coward · · Score: 0

    Easy, just push the stick up and press fire.

  25. I RTFA, can't find it anywhere by Anonymous Coward · · Score: 0

    I read TFA and can't find anywhere the instructions on "How To Make More Cash From One Game Than 10 James Bond Films"

    Either a misleading headline or very glib

  26. Re:Garbage games for garbage minds. by stealth_finger · · Score: 1

    Real games stopped being made long ago. Games that had soul.

    There are still good games getting made but they are mostly lost in the noise these days.

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