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Think SWG has made money for Sony?
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Author:  Golga Bolg [ Wed Mar 31, 2004 5:47 pm ]
Post subject:  Think SWG has made money for Sony?

Here's my rough estimation:

450,000 boxes sold (just a guess, way back they boasted 300,000)
Average Box price of $50
Average of 5 months of paid subscription at $14

Gives $54 Million in Revenue.

Cost of boxes $10 each
Developers (60 * 2.5 years * $90,000) (fully loaded, ie. benefit, rent, etc.)
Hardware $4,000,000
Internet $2,500,000
SW License $5,000,000 (roughly 10% of revenue)
Advertising $5,000,000

Comes to roughly $35 Million in costs. Giving $19 Million in Profit.


Think I'm close?

Author:  Mantison Tau'rus [ Wed Mar 31, 2004 5:54 pm ]
Post subject: 

Don't forget continued maintainence and load costs of running the servers, and several other variables.

If they are at a 40% profit margin, they would be one of the most successful companies EVER to operate.

I would HOPE they are at a 9-11% profit margin, otherwise, the consumer is just getting BENT.

Author:  Arindel [ Wed Mar 31, 2004 7:44 pm ]
Post subject: 

Mantison Tau'rus wrote:
I would HOPE they are at a 9-11% profit margin, otherwise, the consumer is just getting BENT.

Yeah, there's lots of overhead involved. Plus the development and costs have been ongoing. Also, I'm not sure how much they make off of each box. You can't account for the total game price.

Even 9-11% would be exceeding most companies expectations.

LucasArts is probably doing the best in this deal.

Author:  Dragon Fire [ Thu Apr 01, 2004 12:26 pm ]
Post subject: 

Honestly they are probably around breakeven..if you think about it Subscriptions for the most part are for server Maint. and the Continued development..but they still have the space expansion which for the most part is probably getting close to being finished (it looked pretty good Pre-game release at E3) So they still have that going for them...

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