Craig Stern with part #2 of his very interesting in depth-look in the finance-books:
More information.[…]
Initial sales numbers
With that in mind, how is Telepath Tactics doing so far? Three months after release, I have sold approximately 3,000 copies total across all platforms, with gross sales revenue upwards of $36,660.
Net sales revenue, which accounts for the cut taken by the various distribution platforms, is a good deal lower than the gross–note that net is the amount I actually receive. Valve prohibits developers from disclosing data regarding sales made on Steam, so I cannot reveal my net revenue or otherwise break down my total sales by distribution channel. Ultimately, however, the breakdown doesn’t really matter for my purposes: regardless of what the distribution is, I (1) succeeded in fully recouping my out-of-pocket expenses, (2) made a small profit, and (3) failed to make enough money at launch to support myself making a game full-time over the next two years.
Is that good?
In a word: no. SteamSpy estimates that the average RPG on Steam alone has more than 10 times that number of owners. But more importantly, these sales numbers don’t meet my ultimate goal of allowing me to move into game development as a sustainable full-time job.
Someone unfamiliar with the games industry might think that $36,660 is pretty good for just the first three months of a game’s life span–and it would be, if I were a developer who was able to pump out games every 6 months, or even every year. But Telepath Tactics began development in 2009–$36,660 is not anything close to a sustainable amount of revenue for a game with such a lengthy development cycle.
And unfortunately, the fact that it’s only been 3 months since release isn’t a reason to expect much more in the way of sales revenue. Games mostly behave like movies opening in theaters, with launch week analogous to a movie’s opening weekend: traditionally, the bulk of a game’s profits are made at (and shortly after) launch, with a mere drip-feed of sales following from that point onward.
True to form, sales of Telepath Tactics have thus far followed this “L” trajectory. The vast majority of all money made by the game was made in its first week, before the game dropped too far off of Steam and GOG’s respective “new releases” charts for prospective buyers to easily find it. Telepath Tactics is now in what is traditionally referred to as “the long tail”–the flat, horizontal part of the “L.”
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