I Have a Question About Revenue Generated from KH (KHII in Particular)

[HikariYami 354]

I was wondering about why certain regions do not get special editions and through a business lens. Do certain regions do not get nice packages because there is not enough demand for it and will cause a loss of profit? Just because certain fans want it (Side eyeing you #Squarebefair) Doesn't mean there will be an increasing in profit from it.

 

Let's look at the statistics for KHII

KH has sold 4.33 million copies as of July 19, 2014.

The break down: 

Total Units

 

North America: 2.20m 50.9% + Europe: 0.58m 13.4% + Japan: 1.38m 31.8% + Rest of the World: 0.17m 4.0% = Global 4.33m

http://www.vgchartz.com/game/1130/kingdom-hearts-ii/

 

North America and Japan carries 82.7% of all the sales. 

 

 So, let's estimate the raw sales as if everyone paid full price for Europe

Let's say that the price for a game in Europe is 59.99 Euros (I just used this for Europe but I don't know if it is the right unit because UK uses the pound so IDK)

     580000

X    59.99

-----------------

34794200 Euros 

 

As of today, the stock exchange says 1 Euro is equal to 137.56 Yen

So, multiply those two numbers

 

     34794200

X        137.56

---------------------

4,786,290,152 yen 

 

(This is about 47 million dollars for my US people. )

Still a good amount of money, but not nearly as much as Japan or N. America would generate.

 

Edit:

Japan estimates: 11,358,509,465 yen ($110,000,000)

N. America Estimates: 18,180,758,861 yen ($177,131,322)

Edited July 30, 2014 by HikariYami

[Ruby Rose 8,591]

My head hurts

[Keyblade Master Xoncron 499]

Nobody said there would be math! (but I think you make some good points)

[HikariYami 354]

My head hurts

It was hard trying to calculate this, and I am sure that this is still wrong. 

 

Nobody said there would be math! (but I think you make some good points)

Sorry about the math

Edited July 30, 2014 by HikariYami

[Hazimie 1,595]

Dear Math,calculator is your best pal...

[kingdomlanelover 494]

I don't really think Square can lose profit by giving more stuff for pre-orders. The extra stuff is incentive for more fans to buy the game, but since many fans are outraged, the number of pre-orders Kingdom Hearts 2.5 HD Remix has actually dropped. Go to vgchartz.com and see for yourself on the pre-order listings for the game. This pin is hurting sales in other territories, it's not a significant change, but a drop nonetheless. 

[HikariYami 354]

Dear Math,calculator is your best pal...

You better believe I used a calculator. That was too many numbers. 

 

 

I don't really think Square can lose profit by giving more stuff for pre-orders. The extra stuff is incentive for more fans to buy the game, but since many fans are outraged, the number of pre-orders Kingdom Hearts 2.5 HD Remix has actually dropped. Go to vgchartz.com and see for yourself on the pre-order listings for the game. This pin is hurting sales in other territories, it's not a significant change, but a drop nonetheless. 

Well, when you have to pay for the people to make extras, distribute the extras. Then yes, they would lose profit. 

North America has the right to be angry as part of being the bulk of sales over half of the sales. SE will definately add to NA, but they fear that if they send this to Europe they would lose/have little profit from them. 

[Isaix 924]

Probably because they could potentially lose money if it doesn't sell enough copy in those regions,adding the extra stuff comes with a cost obviously.In North America and Japan good sells number are almost garentee,so its not a problem for them throw the extra money for the limited editions,but that's just what I believe,there might be other reasons.

[Caity 3,946]

Fans wanting something does not equate to a sale, while people are saying they would buy the collector's edition mistakenly comparing it to a LE I doubt all the wee kids complaining on twitter will want to pay for 1.5 again or $82 extra for a figure.  The localization team decides what's worth spending for their audience, and even though with this pin deal people are complaining, as an official Disney pin, for collector's it will get valuable.  I was looking it up recently to compare the editions and NA seems to get the best/most order bonuses.  Japan does get extra games (FMs, but we are getting them like, additionally NA and PAL zones add content that isn't in the original version and get added to the FM version plus a few extras.  Like Ice Titan, Kurt Zisa and Phantom weren't in the original Japanese KH1 but were in KH1 for EU and NA) but for most games there's either a box set with multiple games to boost sales, or they get a themed console (so far finding a Days themed DSi and a COM themed Gameboy).  Everything else seems to be bundles like the 2.5 collector's edition, 10th anniversay edition (Days, Coded +  DDD), KH2FM+ (Re:COM and KH2FM).  NA seems to get bonus' with near every game including DDD MoM edition, Coded decals, PSP BBS bundle by Sony with artcards, 1.5 artbook and theme, and there's one case where EU got better with a BBS special edition that had an artbook and art cards.  Overall when you look at it least between NA and JP it seems pretty even, they get bundles with a bonus and you get more bonus' with normal editions for a smaller cost. 

 

+ If the original games sell so well for US why would they think people would want to buy a bundle with the games in it again just for the bonus.  Not everyone is an avid collector of the materials and are willing to buy multiple copies of the game.  A lot more people are cost efficient than collector's.  

 

Additionally in the UK here, it's usually 25-35 quid for a game here, like Kingdom Hearts 2.5 was £30 and dropped to £25, and the LE was £35 and dropped to £30.  One pound is worth 173.97 yen.  

[FutureKeybearer 36]

My head........... No one said there'd be math....

[Marco Basile 47]

My head hurts

My head exploded.

[Forever 3,550]

Oh no!! Not Mathmatics! But seriously, this is a good question..... I'm sure you're right, and it has everything to do with how much each region generates.

[Oishii 3,987]

You can't really compare the sales of the regular game and say a collector's edition would do the same.  It's called a collectors edition for a reason: it's for collectors.  I'm pretty certain that Japan KH fans have more collectors in the fanbase than in US.  One part is just how the country is.  I have never experienced a country so gripped by merchandising than I have with Japan.  To me it seemed like a lot of manga and anime were made just to sell merchandising for it.  A collector's edition would no doubt be successful in Japan.

 

Then you have to look at what strategy SE is taking with our region compared to Japan.  Keep in mind in Japan there is no pre-order bonus for the regular game by SE.  Amazon is giving a downloadable skin to boast their own sales against competition.  Then in NA we do get a nice pre-order bonus no matter where you pre-order.  Why?  To boost sales.  The pre-order bonus is given to add incentive to pre-order the game.  People who would otherwise not order the game may feel more likely to to get a free item with it.  This says a lot about how they think sales will go in this region.  They aren't as confident they'll get the high numbers they want so they're trying to push numbers as much as they can.  So why would they risk a large loss by investing in a collector's edition.

 

This is just how I see it from a business stand point.  I don't think this loud out roar will go without any response from SE either.  No business likes their customers to be unhappy.  I can easily see SE putting together something like a Seeker of Darkness Saga Edition for us when KHIII comes out.

[Keyblader_95 1,410]

....THERE'S MATH IN HERE!

[Aru Akise 2,540]

Although I like math very much, I didn't want to see it here.

Edited July 30, 2014 by SkyKeybladeHero

[VeNate13 144]

I think Square would gain even more money if they released special editions here! They might be surprised about how many people would buy it!