Seems it has come to my final blog post pertaining to INB346 which is sad, it's been a long and fun journey learning all about Enterprise 2.0, Web 2.0 and how the application of various social technologies can have a huge benfit in orginisations both for the orginisation itself and the products/services they offer to the public. So today we shall talk about calculating a return on investment in an organisational project!
When a company sets out to start a new project, they have a desired outcome, a goal. Usually it always boils down to an investment, that is putting money and or resources into a project and expecting something to come out of it, example is realising profits from your investment such as increased sales, or from the profits generated internally due to a new system in place which increases employee efficiency by 35.357%.
What this process is called is ROI or Return-On-Investment, there's actually a neat formula for it too which calucates your ROI percentage!
GTA V Advertisement in Hollywood, CA
The project was started around the end of GTA IV in April 2008, and has estimated on costing between 250 to 265 Million US dollars for production and marketing sectors of Rockstar North.
As the project is completed we now need to workout the revenue generated following release from sales and marketing.
According to sources, within 3 days of release the game generated around $1billion in sales so now we can workout if the investment was worth it or not (who am i kidding, it was SO worth it, Trevor makes it all worthwhile with his methamphetamine tweaked antics)
Applying our investment costs of $265M and our revenue generation of $1B we can workout the following:
( R1,000,000,000 - I265,000,000 / I265,000,000 ) x 100 = ROI of 277.35%
So looks like the ROI for GTA V has worked out to be 277.35% which makes it a tremendous financial success for Rockstar North and Take-Two, also it's fun.
Hey Chris, interesting (and cool) post. GTA V has definitely been a huge success for Rockstar Games. It really is amazing that they've managed to more than quadruple their investment costs to bring their revenue to over 1 BILLION dollars. Wow
ReplyDeleteCool post Chris. I've post the same topic as yours:GTA V. And I have still learnt something new..lol..Your analyse seems more pithily than my one..Please have a look at my post if you like..Cheers
ReplyDeleteThankyou, my goal was to keep the read about something interesting while giving a basic introduction to return on investment, so the reader is entertained but still learning something, vs bored and ultimately closing before finishing the read. But i agree that GTA V was a huge success for Rockstar and Take-Two financially.
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