% | $
Quotes you view appear here for quick access.

Electronic Arts Inc. (ERTS) Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • x6unsound x6unsound Feb 4, 2011 5:55 PM Flag

    Disagree w/ the 500k subscriber comment on Star Wars MMO

    Wait, 500k x $10/mo x 12 months = $60 million, not $300 million.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Keep in mind the relatively low overall margins of the MMO space. Considering the cost of live team support, bandwidth, co-location facilities, game masters, customer service/account management, SG&A, and the ubiquitous credit card fees involved with recurring billing, the net profit is around 10-15%. This would generate around $2.25 per account in billing each month, $1.125mm net.

      Assuming initial retail net of $25 per box after and a generous lifetime estimate of 3mm sell through for $75mm, the monthly net per account in billing would roll up $13.5mm at 500k subs. If the budget estimates of $300mm are anywhere near accurate, it would take SWTOR over 3 years just to break even at that level.

57.29+1.2600(+2.25%)Apr 20 4:00 PMEDT