Microsoft Paid $600,000 to Add Cooking Simulator to Game Pass

[ethomaz]

The report, which has been translated from Polish using Google Translate, says that the management board of Big Cheese Studio "informs that on August 5th, 2022, the company concluded an agreement with Microsoft Corporation under which Cooking Simulator will be available in the Xbox Game Pass subscription." The report goes on to detail that the contract, "which amounts to USD 600,000," constitutes "approximately 22% of the net profit and approximately 17% of the company's net revenue from the sale of products, goods and materials for the last financial year" — it sounds like Big Cheese Studio got a pretty good deal for Cooking Simulator if that is indeed the case.

Microsoft paid $600,000 for Cooking Simulator on Xbox Game Pass — report

A new financial document claims that Microsoft paid a whopping $600,000 to developer Big Cheese Studio to get Cooking Simulator on to Xbox Game Pass.

www.trueachievements.com

 

[laynelane]

I don't really get the appeal of simulators, but it sounds like a good deal for Big Cheese Studio.

 

[ethomaz]

I don't really get the appeal of simulators, but it sounds like a good deal for Big Cheese Studio.

I mean it is 22% of their profits and 17% of their revenue of a whole year of that company.
It seems like a great deal.

 

[BigMclargeHuge]

I don't really get the appeal of simulators, but it sounds like a good deal for Big Cheese Studio.

They're fun to watch streamers mess around with but other than that, I agree.

 

[Bernd Lauert]

I mean it is 22% of their profits and 17% of their revenue of a whole year of that company.
It seems like a great deal.

To me the real surprise is that they apparently made three million dollars with a single, somewhat old and weird game and a bunch of DLCs for that game.

 

[IntentionalPun]

Seems like a great deal for both sides.

 

[ChorizoPicozo]

Xbox Division burning money like there is no tomorrow.

#NotSustainable.

#MSdoesn'tReporXboxProfitsCuzTheyAren'tAny

 

[thicc_girls_are_teh_best]

Heard about this the other day. Not too bad a get, the price isn't necessarily bad either. I think the game did around 700K before coming to GamePass tho, right?

The game itself goes for $20 on Steam though, so I'm wondering if they got somewhat lowballed in terms of payout? That's like they were only expecting to sell 30,000 copies on Xbox. Surely they'd actually sell a decent chunk more on Xbox if the game didn't go to GamePass?

 

[ethomaz]

Heard about this the other day. Not too bad a get, the price isn't necessarily bad either. I think the game did around 700K before coming to GamePass tho, right?

The game itself goes for $20 on Steam though, so I'm wondering if they got somewhat lowballed in terms of payout? That's like they were only expecting to sell 30,000 copies on Xbox. Surely they'd actually sell a decent chunk more on Xbox if the game didn't go to GamePass?

Based on their revenue I believe they didn’t sell that much per year.
And that is in revenue where 70% of it is DLCs for a old game.

For example.

$5 million / $14 (removed 30% of store) = ~360k copies only

So that 700k or it was free or discounted way below $20 or they didn’t ever sold that much.

PS. I’m being way optimist here… their revenue last FY were around $3.5m not $5m.

 

[IntentionalPun]

Heard about this the other day. Not too bad a get, the price isn't necessarily bad either. I think the game did around 700K before coming to GamePass tho, right?

The game itself goes for $20 on Steam though, so I'm wondering if they got somewhat lowballed in terms of payout? That's like they were only expecting to sell 30,000 copies on Xbox. Surely they'd actually sell a decent chunk more on Xbox if the game didn't go to GamePass?

The game has bene on Xbox for ages hasn't it?

So they are getting that $600k years after the game launched, and already got Xbox sales.

I doubt they'd have been expecting to sell 30k+ copies of cooking simulator this late in the game.. and they probably have a sequel or DLC coming or something anyways.

But yeah, it's not like MS is spending massive amounts on it.. nor are they spending that much for any old game. Millions for some, but nothing crazy.

 

[thicc_girls_are_teh_best]

The game has bene on Xbox for ages hasn't it?

So they are getting that $600k years after the game launched, and already got Xbox sales.

I doubt they'd have been expecting to sell 30k+ copies of cooking simulator this late in the game.. and they probably have a sequel or DLC coming or something anyways.

But yeah, it's not like MS is spending massive amounts on it.. nor are they spending that much for any old game. Millions for some, but nothing crazy.

Oh, I didn't know it was already on Xbox for a while by this point. In that case, then yeah I guess it's a pretty good deal on both ends. Could almost say MS overpaid if only slightly, but it's likely without GP the game maybe wouldn't just sold an additional 20K - 25K at most, maybe 30K.

It's not like paying a 5K copy premium is much anyway when the game is so cheap, but that could incentivize the publisher to be open to future deals with MS for GamePass.

 

[Shmunter]

$600k outright, or some kind of revenue share on top based on downloads/engagement?

 

[Old Gamer]

$600k outright, or some kind of revenue share on top based on downloads/engagement?

The deals can vary on a per game basis, but according to some indie devs, it's usually a one time payment and that's that.

 

[Hezekiah]

Well, good deal for the devs anyway.

 

[Yossarian]

Kek.

 

[ethomaz]

$600k outright, or some kind of revenue share on top based on downloads/engagement?

This specifically deal is one time payment.

Of course it probably has a period it will stay on GamePass.

 

[ParaSeoul]

Money well spent.