Each game costs € 60 nowadays (next gen is leaning toward € 70).
Where does that money go to ?
* Publisher : € 24 (40%)
(Ubisoft, EA, Take Two, Activision Blizzard) : provides the money necessary for the development of the game. Oversees the development. Does the marketing and arranges the distribution.
* Developer : € 6 (10%)
Develops/programs the game. There are a lot of development studios owned by Publishers, but sometimes they are independent.
* Hardware producer : € 12 (20%)
Producers of PlayStation, Xbox, etc…
* Distributor : € 3 (5%)
Distributes the games to the shops
* Shops : € 15 (25%)
(Now you know why publishers prefer digital sales over physical sales)
Source : multiple sources