Carpe Fulgur’s next game is Chantelise; Recettear sells 100,000 copies

Carpe Fulgur’s next release will be Chantelise, a 2006 hack-and-slash game from EasyGameStation (more details on Chantelise here). I have to wonder whether it’ll enjoy the same success as Recettear, given that Recettear had a unique premise to hook RPG players who otherwise may not have taken notice of “an indie game from Japan”. Still, worth keeping an eye on. Chantelise is just one of the titles Carpe Fulgur has planned for 2011, so maybe we’ll also see an English release of Territoire? (According to Google’s translation, the Territoire demo is already available in Japanese – check out the EasyGameStation website here, click Download and then the first link.)

 

Meanwhile, Recettear has now sold over 100,000 copies! Granted, most of those sales were heavily discounted – for example, during the Thanksgiving Steam sale, Recettear was effectively being sold for $1 ($5 spread over five games in a bundle pack), but 100,000 people playing a niche indie game is still pretty impressive.

 

What does this mean in dollar terms? A while back,  I estimated Carpe Fulgur would have seen a little under ~US$500,000 in revenue (based on 26,000 units sold, half at $18 and half at $20), so if I update my numbers to assume 13,000 pre-orders @ $18, 17,000 sold for the full price of $20, 60,000 @ $1, and 10,000 @ $10 (the current Steam sale price – it was $5 on a daily sale, but let’s keep things simple), this gives us total ex-Japan revenue for Recettear of $700,000. Carpe Fulgur also mentions that its share of Recettear sales proceeds – in other words, its gross profit margin – is slightly under 25% (vs my earlier guesstimate of 33%), with the bulk of the money going to EasyGameStation. If we assume, say, 22.5%, then multiplying by $700,000 leaves $157,500 to pay salaries, tax and any other bills. Assuming minimal expenses, that equates to $52,500 for each of Carpe Fulgur’s three members. This isn’t that far from my earlier estimate of ~$55,000 from 26,000 copies, because the higher number of (mostly discounted) sales netted out against my too-high gross margin, and is still a respectable figure.Of course, the most important thing is how it affects the viability of the business, and there, Carpe Fulgur sounds pleased as punch.

How much would it cost to start a game development company?

I’ve previously guesstimated the amount of sales revenue Carpe Fulgur would have received from Recettear, and discussed the finances of Arcen Games, the developer of AI War. Today, I found a series of posts estimating how much it would cost to set up a game development company with a six-person team (everything from salaries to legal costs to rent), and how many units you would need to sell in order to break even. It’s an interesting read if you ever wondered how easy (or hard) it would be for an indy studio to keep its head above water.

Arcen Games: a sobering reminder of the expenses involved in indie game development

Last week I wrote about Recettear’s sales figures, which, on my assumptions, would have pulled in revenue of ~US$500,000. However, expenses would be pure guesswork. Today’s post serves as a sober counterpoint. According to this PC Gamer article, “AI War and the Hidden Cost of Indie Games”, Arcen Games, developer of RTS AI War and puzzler Tidalis, is having difficulty bringing in enough to pay the bills. Here are some highlights, extracted from Chris Park of Arcen’s email to PC Gamer:

 

2010-thru-April

Total income for Arcen during this period was $101,401.38

Total expense for Arcen during this period was $91,314.76, including paying staff and myself, acquiring new licenses and technologies (Unity 3D, and some sound software, etc), legal fees for contract negotiation, payroll taxes, health insurance, site hosting, all that stuff…

  • May $19,085.06 income, $12,684.28 expense
  • June $17,233.70 income, $26,434.89 expense (a fair chunk of this was taxes)
  • July $6,956.48 income, $18,243.52 expense
  • August $13,847.02 income, $18,682.68 expense
  • September $13,395.42 income, (not full data yet, but expenses looks to be about the same but a little lower than August)

 

Note the apparent rebound in August is not, in fact, like-for-like: Arcen’s second game, Tidalis, launched in that time, while sales for its first, AI War, softened in July.

 

However, there is one question lingering in my mind. From the sound of the article, Arcen’s labour costs are highly variable: it pays the staff in royalties rather than wages. So what are the other costs? Arcen mentions a few:

 

  • Taxes;
  • Licence fees (“Unity 3D, and sound software”);
  • Health insurance;
  • Site hosting;
  • Legal costs involved in striking publisher deals;
  • MacOS machines for development;

 

I wonder how much these various costs ran to, and what the implications for other indie game developers are. (As a localiser rather than a developer, my first impression is that Carpe Fulgur must have a lower cost base than Arcen, but I could well be wrong.)

 

In any case, I am downloading the demos for AI War and Tidalis as I write this. Check out the demos if they sound interesting to you!

Congratulations to EasyGameStation and Carpe Fulgur on Recettear’s sales figures

Update, 3 January 2010: Recettear sells over 100,000 copies. My latest post here.

 

Carpe Fulgur, the company which localised EasyGameStation’s Recettear (see my two earlier posts), has announced Recettear has sold over 26,000 copies in the last month. I’d been wondering how well the game had sold after launch (before launch, I remember it was at #4 or #5 on Steam at one point), and I’m really glad to hear it remains successful.

In fact, Carpe Fulgur’s website says Recettear brought in enough money to allow “all of [Carpe Fulgur’s] members to make wages comparable to “proper” jobs in the industry for an entire year”. What does this mean in dollar terms? Out of interest, I crunched a few numbers:

I assume half (13,000) paid the pre-order price of $18, and half paid full price ($20). This produces revenue of (13,000*$18) + ($13,000*20) = $234,000 + $260,000 = $494,000.
I then assume that EasyGameStation and the distributors each take one-third, leaving Carpe Fulgur with gross profit of $494,000 * (1/3) = $164,667.

Now, I have no idea what kind of expenses (other than salaries) would have to be paid out of that revenue. However, I understand that the Carpe Fulgur team members have no office and worked from home, in which case expenses would probably be pretty minimal. Carpe Fulgur’s legal structure is an LLC, which — if I’ve understood the IRS website correctly — means it’s not a taxable entity, so taxes would be paid by the individual members.

Let’s assume, for the sake of argument, that there are no expenses beneath the gross profit line. And as our last assumption, let’s say that Carpe Fulgur splits its profits equally between its three members. That gives us a figure of $54,889 per member of Carpe Fulgur.

That is, in fact, a pretty neat sum (of which I’d say they deserve every penny). This has to bode well for our chances of seeing EasyGameStation’s next project, Territoire, in English!

Recettear: An Item Shop’s Tale — The Verdict

A couple of weeks ago I wrote about the demo of a game named Recettear: An Item Shop’s Tale (please see the initial post for the game’s premise). I’ve now spent around ten hours with the demo + full game, and my verdict is, this was a great diversion, albeit with a finite shelf life.

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Recettear: An Item Shop’s Tale

Have you played RPGs? Then you know how it feels to be gouged when you come into town to buy potions or stimpaks or shotgun shells. You know how it feels when you can barely scrape by selling hard-won rats’ tails, wolves’ pelts and +2 Vendors’ Trash. And most of all, you know that, “But I’m on a quest to save the world!” cuts no ice at the local item shop.

Recettear: An Item Shop’s Tale puts the shoe on the other foot. As town shopkeeper Recette, you buy low, sell high in an effort to meet loan repayments (game over if you can’t pay on schedule!), and in a second, action-RPG mode, hire heroes to go dungeon-crawling in search of rare merchandise. You can only take a certain number of actions per day, and the challenge seems to be how to manage your finite time to  amass the most money before the next loan instalment comes due. I’ve played the demo and found it charming enough to pre-order the full version (which you can do through Steam, Gamersgate or Impulse), notwithstanding I lasted about twenty seconds in the dungeon mode.

Check out the demo, and have fun!