Going gold?

[Vevster]

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.

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?