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68. Re: Dead Space 4 Cancelled? Mar 5, 2013, 16:58 Beamer
 
Creston wrote on Mar 5, 2013, 16:53:
Beamer wrote on Mar 5, 2013, 16:35:
But why do you think they spend so much money advertising? Why does Hollywood? Why does P&G spend more money advertising Pampers than some companies have in GDP?

Because it is an expense, and as such can be deducted. It's really not that hard. Why do corporations like contract labor over full-time employees? Because it is an expense, and can be deducted.

Because advertising works.

No. The idea that "advertising works" period full stop is nuts. It works to an extent. Advertising can definitely get you more sales, but EA seems to believe that if you spend X on advertising, you sales will increase by 3X ad infinitum. Sadly for them, that's not how it works. Spending 75 million dollars on advertising means you have to sell ~3 million extra copies just to make the fucking advertising costs back. (might be a little less, but I believe publishers take home about 25 bucks for every full price game sold?)

Creston

Wait, that's two different things.
Contract over FTE, yeah, you're right. It's allocated differently which makes it desirable (which can be infuriating and lead to stupidity.)

But you're saying they want to spend ad dollars because it can be deducted? With labor it's a choice between an expense that can and an expense that can't.
But with ad dollars you're talking about an expense that can and... saving that cash.

If there was no ROI it doesn't make a difference if it can be deducted or not. You never choose to spend money you don't need to because it can be deducted. Yeah, you may choose to spend it in a way that can be deducted if the choice is between spending it in a way that can and a way that can't, but you don't throw away money you don't need to throw away just because it can be deducted.

You're throwing out a conspiracy theory here that does not add up.
 
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