Quote Originally Posted by CrAZYVIC View Post
factual inequalities and A LOT of assumptions
I am a finance professional, specializing in business consulting.

Costs you didn't account for:

Talent retention
Employee salaries (not the dev team)
Office space
Business overhead
Consulting
Corporate overhead
Corporate taxes
Employee performance bonuses
Travel
Special expenses (live letter, that RL FATE, etc)
etc, etc, etc

Not to mention there needs to be substantial profit for the corporatation to exist to provide you with this product.

A new game costs $60, and like I said before, to get the same value out of it as you would out of ARR if you play 10 hours a week, you would need to play that normal video game for 6 days straight in every waking hour. That would be roughly 4 "new" video games per month if ALL YOU DID was play video games, which would cost you $240.00

So you can think about it this way. If we assume ARR has the same entertainment value as other video games @ $0.62 per hour (not true, but bare with me), that means that if we wanted to fill entertainment time of let's say 40hrs/week, it should cost you about $100/mo to play a game that will keep you entertained that much on an on-going basis.

Profit margins or gross revenue really do not have much to do with the value you assign to your entertainment. If you created an unbelievable invention that everyone in the world can't live without and is willing to pay $20.00 for, but it only costs $0.05 to make, you are still going to charge them $20.00, because the market has assigned your idea the value of $19.95

YOU go learn some finance and economics.

: D