Soldato
Simple version. Income (or revenue what people pay) - operating costs (development costs and costs of business) = gross margin.
Then you have other costs, corporate stuff, tax’s, loans and banking costs etc. One off stuff like purchasing companys or shuting companys down. Repaying goverment grants etc.
When you are doing done with that your onto profit which either goes to dividends to share holders or reinvestment.
Always winds me up when people talk about game development cost and talk about wages. Wages are typically less than half of the cost of a man hour of work, buildings IT and infrastructure, burdens on salary (pensions NI medical insurance holiday and vacation) R&D marketing by and sales all cost money as well.
Excuse train & iphone typing
Then you have other costs, corporate stuff, tax’s, loans and banking costs etc. One off stuff like purchasing companys or shuting companys down. Repaying goverment grants etc.
When you are doing done with that your onto profit which either goes to dividends to share holders or reinvestment.
Always winds me up when people talk about game development cost and talk about wages. Wages are typically less than half of the cost of a man hour of work, buildings IT and infrastructure, burdens on salary (pensions NI medical insurance holiday and vacation) R&D marketing by and sales all cost money as well.
Excuse train & iphone typing