Yoshiki Okamoto, the producer of Street Fighter II and long-time developer at Capcom, has shed light on how much Nintendo made selling an NES cartridge to third-party publishers 40 years ago.

According to the producer, Nintendo was the only company that had a steady source of revenue thanks to their business model of selling cartridges. At the time, publishers like Capcom had to borrow from banks to fund the production of game cartridges, and production could only start once payment is made. It took 1.5 to 3 months for the cartridges to be delivered after payment.

Okamoto illustrated the breakdown of a 10,000 yen NES game. Out of 10,000 yen, 3,000 yen went to the retailer, 4,000 yen went to the publisher, and 3,000 yen went to Nintendo. Out of Nintendo’s share, 1,500 yen went to manufacturing contractors, so Nintendo effectively took 1,500 yen.

It should also be noted that Nintendo wasn’t responsible for unsold stock, so publishers could incur losses from stock that isn’t sold.

On the other hand, PlayStation discs were much more cheaper, as the publisher only paid 1,800 yen to Sony Interactive Entertainment. Out of the 1,800 yen, 200 yen was the production cost, and 1,600 yen was Sony’s cut. Sony accepted returns for surplus stock if the game didn’t sell well, and reimbursed their 1,600 yen cut to the publisher, thereby reducing the risk.

Okamoto claimed that Sony’s business model helped to boost Capcom’s profits, and explains that is the reason why many third-party publishers and developers at the time jumped from Nintendo to PlayStation.

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