I’ve been out of the production side of the business for a while now, but I need to get a sense of some costs on NDS games. I’m hoping someone here can help me out, either by direct post or PM.
As a licensor, I’m looking at licensing an upcoming property to a NDS publisher. What licensing guarantee could I expect? The numbers I’m assuming are:
- retail price of $29.99
- wholesale price of $18 (40% to the retailer)
- licensing guarantee of $50K, with 11% royalty (or $1.98/unit)
The question is: is that $50K number reasonable for a NDS license? Of course, there are development costs I’m not looking at, and licensing/manufacturing fees that go to Nintendo.
Any advisement here from people who’ve been through the business end of this sort of thing would be helpful! It’s always easier going into a discussion when you know what you’re talking about!