Video Game: How is the Estimated Budget calculated?

This article is intended for students.

In the Video Game simulation, revenue forecasts depend on your sales forecasts for each of the games (see the product portfolio form).

1. Some expenses depend directly on your budget decisions regarding promotions, distribution and customer service.
   
2. Other expenses are estimated automatically by the simulation based on various parameters (i.e., sales forecasts, amortization of development costs, etc.).
   

The Estimated Budget lets participants check the impact of their decisions and correct them before the deadline.

Students can see the Estimated Budget in real time on all the decision forms. The link is on the left side of each form.

Be careful, though: the figures presented in the Estimated Budget are only projections. See the article Why are the results on the Income Statement different from the Estimated Budget?

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