Quote:
Originally Posted by Kikuchiyo
I think the misunderstanding is coming from you interpreting a developer's gross margin with a publisher's gross margin. You're figures aren't incorrect you are just confusing a publisher's gross margin with the developer's gross margin which is what the Forbes article was talking about. An outside developer's gross margin from a retail box sale is about half of the product's gross margin of profit. DD cuts out that sharing of the gross margin profit with the publisher.
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Sorry, you're saying Forbes is talking about developpers Gross Margin?
Exact quote from the Forbes article
http://www.forbes.com/forbes/2011/02...-mayhem_2.html
Second page
"Steam's appeal to
publishers is in giving them the opportunity to sell directly, cutting out the profits extracted by distributors.
Publishers earn a gross margin of around 70% on Steam, compared with 30% via retail stores"
Am I still the one interpreting what is written in Forbes' article?