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[MattjDrake]

This is a tough question to answer, you really have to try and assess the risk that you are willing to take. I have released some modestly successful apps (more productivity than games) and after looking over the numbers I have concluded that $25,000 is the money I would expect to make on a given app.

I target apps that I think will apply to niche markets that seem to have a steady but lower income for what its worth.

All that being said, from my experience I believe that $20,000 is a fair budget as long as you can absorb the risk - you have to pay to play. You can hope to make a $5,000 profit but there is always that chance that your game will be huge and make $5,000+ per day.