Posted by: Anonymous Coward
on July 10, 2003 07:36 PM
Roberts told me it will probably take somewhere between 750,000 and one million subscribers to start turning a profit, based on $9.95 per month.
This doesn't look good to me. Seems they feel that they'll have to have something like $88,000,000 to $100,000,000 per year to break even? That's JUST TO BREAK EVEN!?! This certainly smells like a bad ".com" bussiness plan to me. Is it buying all the licences for the games?
Someone help me understand why he has to have that sort of cash flow, just to break even. After all, you can build rather large networks and even support them for a heck of a lot less than that. His console is pretty much a PC, not exactly huge costs there. Besides, the purchaser is paying his share. So, is the lion share going to pay for content? If he has to have that sort of cash flow to pay for content, that surely sounds like he isn't brokering very good deals to support his business model.
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Another ".com" waiting to bust?
Posted by: Anonymous Coward on July 10, 2003 07:36 PMThis doesn't look good to me. Seems they feel that they'll have to have something like $88,000,000 to $100,000,000 per year to break even? That's JUST TO BREAK EVEN!?! This certainly smells like a bad ".com" bussiness plan to me. Is it buying all the licences for the games?
Someone help me understand why he has to have that sort of cash flow, just to break even. After all, you can build rather large networks and even support them for a heck of a lot less than that. His console is pretty much a PC, not exactly huge costs there. Besides, the purchaser is paying his share. So, is the lion share going to pay for content? If he has to have that sort of cash flow to pay for content, that surely sounds like he isn't brokering very good deals to support his business model.
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