A short article about the speech of Bill Swartz on GDC: Follow the Money.
I find the whole economical side of game-making very interesting. Unfortunately, I don’t understand the abbreviations on the slides. What is P&L? What are Cogs? What does Variable Dev mean?
His slides show the cost of production being a set number, but the assumptions include “CD or DVD.” Did he discuss if there is any meaningful production cost difference between them?
P&L = Profit & Loss Statement, which is similar to an income statement in its presentation of revenues less costs equals income.
Variable Dev = I think this referred to the wide range of factors which make up a developer’s contract, including their advance and later residuals/royalties.