I hate to say this...but, I think it's really over for our beloved game.
While Mrs. Lackey's husband or whoever did their fact checking, they may not necessarily have a background in finance, but that doesn't mean he knows people who do, or people who can provide further information than what we have.
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On top of that, if that figure that is given *IS* the "profit" of the game, then that means that *multiple* people have been misreading and misusing it on the forum.
Now THAT I do find unlikely (especially seeing as this information has been used to back up the game in the past).
Now saying that... $800K profit per QUARTER I can believe. And it *does* fit roughly into what we (as outsiders) can work out (This being the difference between Revenue per year at *roughly* $10/year and the *rough* annual wage and benefit cost (lets call it $7million/year)
That *does* suggest a profit margin of roughly $800K per quarter... which is roughly $266K/month profit. A far cry from the $800K/month that Mercedes (and quite possibly other people) have posted up.
Trying to put down the information she provided because you think you know better doesn't prove you right either. This is a person of reknown character that has the respect of many people (not juts fans), and has offered her services in multiple ways to help save this game in one form or another. I'd say that places her head and heels above people that come to these boards and try to crap all over them with their "superior knowledge". |
I do appreciate what she (and the rest of the Titan crew) are trying to do to save the game, but people who end up saying stuff that they cannot (or will not) back up with the exception of a "just trust me" statement (or words to those effects) just makes me tend to ignore them.
I am pretty certain that *most* if not all of the "naysayers" will change their tone if they are provably shown evidence to the contrary.
Of course, that is pretty much also my point of view with organised religion as well... I am willing to wait for evidence to appear to the contrary, but I never just accept something at face value. I will do research to see what there is.
Side note: I honestly doubt that Melissa would be able to post the internal finances of Paragon Studio's without approval from Ncsoft.
Now saying that... $800K profit per QUARTER I can believe. And it *does* fit roughly into what we (as outsiders) can work out (This being the difference between Revenue per year at *roughly* $10/year and the *rough* annual wage and benefit cost (lets call it $7million/year) |
If Paragon were running a profit of ~$800k/quarter exclusive of non-Paragon Studios costs, that's not a number that is of much use going forward. If anyone were to take over the game, they would still need to take on those additional costs.
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I would agree that this is a more plausible figure, but you have to remember that the operating costs for Paragon Studios don't include the servers and support staff necessary to run the game.
If Paragon were running a profit of ~$800k/quarter exclusive of non-Paragon Studios costs, that's not a number that is of much use going forward. If anyone were to take over the game, they would still need to take on those additional costs. |
Once you start to factor *those* costs in... that $800K/quarter starts to dwindle quite rapidly.
A fresh out of college CS major that scores a 100k+ job in the Bay area has effectively hit the lottery. Also, no fresh out of college CS major is worth $100k. I don't care if he graduated valedictorian from Stanford and flew to the job interview in his personally constructed jetpack.
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My tactics have never changed, but they never had anything to do with what you seem to claim. I state things, and when they're challenged, I defend them.
Here's my statement that you latched onto with all the same pedantic asininity that you used to break out the forth and fifth dictionary definitions of "failure" above. Readers should bear in mind that this discussion was posted during I18, so the only way to get purples was as drops or with Hero/Villain Merits. Days later, after the main thread discussion had actually died down, you wandered into the thread and start arguing with the quote above because you were able to show that some Stealth IOs had been bought at prices that exceeded the price of some of the cheapest purples. As I seem to recall, you are some sort of teacher of literature, and yet you cannot understand how indescribably, pointlessly pedantic this was. For someone with such a background (if I remember correctly) you suck at communication. Everyone in that thread, even the person with whom I was debating when I posted it, understood exactly what I meant and did not object to it. You came in after the debate was over and started a new one strictly based on semantics. In the resulting debate, you threw up Venn diagrams that proved nothing and you quoted market facts that ultimately blew up in your face. You were wrong, everyone there knew you were wrong, and you still couldn't let it go. No, you couldn't possibly be wrong. The other people in that thread disagreed with you because they were my "fan club". Yeah, because I've always had such a big following. Anyone who wants can read the thread from the link in the quote above. I'll leave it as an exercise for the reader to determine whether or not you live in your own little world of logic and meaning. I will say that this post summarizes the whole thing rather nicely, though. And I must say I did very much enjoy making this post. |
Everywhere in this game you had cheerful helpful people, on the forums you had wannabe devs and kissups.
Just for fun and because it looks like you can't take being wrong. During I18 you could get pvp IOs by afk farming for them. That's how I did it, and you couldn't give away the Targeted area effect pieces or the non proc point blank area effect pieces.
My "back of the napkin" accounting is just like Brillig's. 2.5M USD per quarter income, for $10M per year, 80 heads at $x annually. What is "x" is what we can't answer. I'm going to arbitrarily call it $150k/year, because that's a number I'm familiar with for an area that's slightly less expensive than the bay area for a similar talent pool. 80 * 150k = $12M. That's a loss. I see some folks showing frustration at the line "the game was profitable" when there is just no indication that is true. I've stopped fighting that fight, to be honest. It's sort of like arguing religion at this point. Folks seem to believe what they want to believe, regardless of the proof presented.
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A fresh out of college CS major that scores a 100k+ job in the Bay area has effectively hit the lottery. Also, no fresh out of college CS major is worth $100k. I don't care if he graduated valedictorian from Stanford and flew to the job interview in his personally constructed jetpack.
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When I said I stayed away from the forums, I was thinking of you. Not specifically you but the general you. An internet dweeb with a bunch of Beavis and Butthead clones that they hung out with. I read your thread I see you beating up someone, nerd fan comes into point out you don't know what you're talking about, and you aren't man enough to admit it.
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And if you think that thread shows I don't know what I was talking about, you're either a colossal moron, or (I think more likely), you didn't read the thread. You know, because there are screenshots proving what said.
Everywhere in this game you had cheerful helpful people, on the forums you had wannabe devs and kissups. |
Just for fun and because it looks like you can't take being wrong. During I18 you could get pvp IOs by afk farming for them. That's how I did it, and you couldn't give away the Targeted area effect pieces or the non proc point blank area effect pieces. |
My best RL friend plays this game, and has been farming like that for ... ever. These days he uses, I kid you not, 12 accounts to do it with. (Well, he did, he stopped after the announcement.) So yeah, I know how that works, and have all along. Guess what? That ability of players like him to farm them has always been baked into the market prices. Do you know when the prices on the high-end ones crashed, and finally dipped under the 1-2B mark? When converters came out, and allowed the massive stockpiles of low-value PvPOs those farmers all had created to be converted into the valuable ones.
Blue
American Steele: 50 BS/Inv
Nightfall: 50 DDD
Sable Slayer: 50 DM/Rgn
Fortune's Shadow: 50 Dark/Psi
WinterStrike: 47 Ice/Dev
Quantum Well: 43 Inv/EM
Twilit Destiny: 43 MA/DA
Red
Shadowslip: 50 DDC
Final Rest: 50 MA/Rgn
Abyssal Frost: 50 Ice/Dark
Golden Ember: 50 SM/FA
Ok, so just going by the report people have guestimated how much it cost to operate the game and decisively determined the game was bleeding money and posting in the red somewhere, but those red numbers have never been shown or spoken about publically.
Not only that but in order to prove the above, Melissa (WW) telling M. Lackey that they (PS) were doing well (as far as game health / financials are concerned) can only be right if she posts their books on line for everyone to read.
Not only that, but in order to prove the first statement true, somone or some people at Paragon Studios are stupid.
Oh and point of fact, but Paragon Studios hasn't had prior games that failed. Cryptic studios had at one point, a bare bones staff working Cityof, the rest working on the Marvel MMO, and from what their banner used to show and a brief post, another game in the inception stages.
Paragon Studios, while having some of the staff from Cryptic stay on, solely worked on Cityof, and recently began work on another game. That is not a third new game with the first two failing.
And by assuming that the point of trying to buy the IP of Cityof because someone knows automagically how to reduce operating costs and make a profit isn't going to lure investors that way. You can't go to a one or more investors with something that is operating in the red - which by the way woud mean they've known it was operating in the red prior to cancellation and did nothing and / or lied to everyone involved- which won't go over well with investors.
So its either that the management of this game dumb as a post, and you and others are right, of which you have nothing to show the game operated at a loss, or
This game was making money, the management team had a healthy staff working with plans well into the next year, and they along with all their staff were just as shocked as players were when the cancellation came down, and some of the management knowing they have a proven money maker are trying to get ownership of it.
Hmm, I wonder which is more likely?
Blue
American Steele: 50 BS/Inv
Nightfall: 50 DDD
Sable Slayer: 50 DM/Rgn
Fortune's Shadow: 50 Dark/Psi
WinterStrike: 47 Ice/Dev
Quantum Well: 43 Inv/EM
Twilit Destiny: 43 MA/DA
Red
Shadowslip: 50 DDC
Final Rest: 50 MA/Rgn
Abyssal Frost: 50 Ice/Dark
Golden Ember: 50 SM/FA
Paragon Studios, while having some of the staff from Cryptic stay on, solely worked on Cityof, and recently began work on another game. That is not a third new game with the first two failing.
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And honestly, I'm of the opinion that CoH wasn't failing, but NCSoft couldn't/didn't want to focus it's effort on it any more. It happens. They already have other games that are far more successful in Korea, with a new game launching that's pretty popular in both Korea and the US. So it's not far fetched that, despite CoH's success, NCsoft just wanted to focus energy elsewhere. After all that IS what they said to begin with.
Your numbers need to take into account that some portion of those 80 personnel were NOT working on this game. They were working on a new project and, therefore, their costs should not be attributed to CoH. Unfortunately, we don't know what percentage of the staff was on the new project.
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This is what I've been getting at. I think all the talk about "realignment of company focus and publishing support" has nothing to do with CoH, but with killing the new project. There was no way that big profits were going to come from CoH anyway, the big deal would always have been a new game - that was where NCSoft was going to see a big reward if Paragon were successful.
CoH is collateral damage.
So its either that the management of this game dumb as a post, and you and others are right, of which you have nothing to show the game operated at a loss, or This game was making money, the management team had a healthy staff working with plans well into the next year, and they along with all their staff were just as shocked as players were when the cancellation came down, and some of the management knowing they have a proven money maker are trying to get ownership of it. Hmm, I wonder which is more likely? |
In the lack of evidence of showing this, whether it's hard to get or hidden or dont exist, compared to there seems to be evidence that the staff was shocked and had future plans, I think the second option is more likely.
-Female Player-
Ok, so just going by the report people have guestimated how much it cost to operate the game and decisively determined the game was bleeding money and posting in the red somewhere, but those red numbers have never been shown or spoken about publically.
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However, what I was personally disputing was Mercede Lackeys figures that the game was making $800K/month *profit*. Because that means that the game was making almost $13million(ish) per year profit. However, the financial statements from NCsoft contradict that figure quite soundly. Because in 2011, they only managed to bring in just under $11million in sales/revenue over the course of the year.
And we can see that this year has been a *slight* downward slope in terms of revenue/sales/income/call it what you will (just not *profit* as that is something different).
If you want to look at it yourself, go to http://global.ncsoft.com/global/ir/earnings.aspx download the file that you want, and have at look at the IR_Consolidated FactSheet (you will be wanting the Games Sales tab in the excel spreadsheet).
That is where a lot of us are getting our figures from. And to be fair, we have *never* assumed that this was profit, but pure earnings before costs are taken into consideration. And in the past, people have been *willing* to accept those figures as "pre expenditure".
Not only that but in order to prove the above, Melissa (WW) telling M. Lackey that they (PS) were doing well (as far as game health / financials are concerned) can only be right if she posts their books on line for everyone to read. |
So please, can you find out how on earth you can make $800,000 profit a month on $800,000 income?
The only way I can see this happening is if you have zero expenditures. Which to me seems impossible.
Now, I am going to ask you a question here.
How many subscribers (or to make it easier for you) or accounts which receive a Paragon Point stipend are there for City of Heroes, and how did you arrive at that figure?
The answer is important here, because it will show how attentive you are.
I will tell you how I arrive at my figure of 55,000-60,000 subscribers (although to be fair, the number of subscribers is likely to be *lower* although the number of "active accounts" will be higher).
I looked at the NCsoft financials and saw how much money it was making. Due to currency conversions and rounding, this is only an estimate, but still fairly accurate.
1) Take the Korean won earnings value and covert it into US$. You can find this on the NCsoft Earnings page. You will need to be looking at the Game Sales tab of the excel spreadsheet.
2,855,000,000 Korean Won = $2,552,412.
Lets call that $2.5million
2) Divide that by 3 to get monthly earnings.
$2,500,000/3 = $833,333 earnings/income/revenue
3) Divide *this* figure now by $15 (this is the maximum monthly sub that someone pays. Sticking with this figure because those in Europe actually pay more than $15/month to subscribe to the game once you take into consideration currency conversion). This will give us an *estimate* of the number of subscribers or number of *equivelent* subscribers (if you are going for active accounts) in the game
This means that we now do the following sum
$833,333/$15 = 55,555. Lets call this 55K to 60K current active subscribers to the game.
Of course, this is assuming that no one spends money to buy Paragon Points and that everyone spends just $15/month.
Of course, we know that isn't exactly true. There are free accounts and premium accounts out there. But without extra information, we cannot even begin to guess how much they are spending.
But for every full subscriber who spends money on Paragon Points, that just reduces the number of "equivalent subscribers" out there.
Now, I have read out in the big wide world, that the game *apparently* has 100,000 subscribers. However, the NCsoft financials *do not* support that theory. Unless of course the subscription fee is $7.50/month.
There is a difference between a subscriber and an active account. A subscriber pays $15/month to play the game (or there abouts) and get access to incarnate content and receives a monthly Paragon Point stipend (there are other benefits). An active account can play the game and *doesnt* get access to incarnate content nor the stipend. They can however pay to gain access to "rent" or buy access to missing features though (with the exception of Incarnate Content).
Now, all of everything that i have stated previously goes out of the window, if "game sales" doesn't mean "how much money they have coming in" and instead means "just clear profit". Infact, it throws *everything* out of the window.
A small bit of research from *your* side can help a lot. Especially when it is backed up by a conclusion as to how you arrived at the number.
Even at $800K a year, that's not bad profit after all salary and expenses for a small company in a competitive market during a several year long economic downturn. Not bad for a private company.
It's just the $800K a month profit makes no sense since that figure is virtually identical to what NCSoft reported as the game's income. And at the income levels they were reporting before Freedom suggests a subscription base in the 60-80K range. Post-Freedom revenue hasn't altered significantly from pre-Freedom so it's equivalent to 60-80K subscribers.
As for cost of bandwidth, NCSoft reported bandwidth costs, world wide, all games, was only $4.9 million in Q2 2012. So really how much can our dinky little share cost?
As for the outcry about lack of advertising, how much of that is self validation? Something we can point at and say "see, that's what I play" to your WoW buddies. How did you feel when you saw our game on Chuck or in Big Bang Theory when Sheldon called us out by name? Face it, we all want recognition and seeing something you participate in on TV is a bit of an ego boost.
Advertising needs to be cost effective. You have to hook X number of people and get Y dollars out of them to break even. The cost of a nationwide primetime 30 second commercial isn't cheap. One on Chuck costs $50K in 2011. Big Bang Theory was almost $200K. I would imagine one on SyFy Monday nights (Alphas, Warehouse 13) costing at least $10-20K and Cartoon Network's DC Nation (assuming DC would allow it) or Toonami block maybe half that. And those costs are per spot. Of course WoW can afford TV commercials with the amount of money it brings in but there's a couple of orders of magnitude between WoW and us in terms of revenue.
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Well, to be fair, without knowing who you are referring to specifically, I am going to believe that you were referring to Another_Fan's wage estimates (which to be fair, in my mind I *do* believe that they are a high, which is why I ended up settling for a $7million/year wage/benefits package cost for 80 developers).
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I'd actually agree if I was talking base salary. That was employee cost. Everything you need to have someone working in an office doing that kind of job. For tech companies that includes things like employers contribution to taxes, continuing education benefits, health plan, etc, etc, etc.
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And chances are that there are also similar things for Nvidia and ATI to attend as well.
Why don't I provide a link to another thread where that same thing happened. Here's a thread where you piled in and promptly started driving the discussion down narrower and more convoluted arguments about the semantics of the words used in order to defend positions that felt tangential to the original debate. Watching you in this thread is amazing - every 10 posts or so you're involved in an almost completely different argument.
Here are a few fine quotes in response to your posts (none of which were responses to me). These are just samples; there are more like this in the thread.
Here's a prediction: I did 15 minutes of work on this post. I predict you will spend less than 2 minutes either rebutting it with a very brief answer, or will completely ignore it like the Devastation data point.
I know, I know, you have all these OTHER people to answer, because for some reason you're the only one on your side of the argument. You're a busy guy. |
Quite the opposite, in fact. You dance back and forth, picking little nuggets of other posters' arguments (real or imagined), deflecting and distracting from even direct questions posed to you. And as above, when all else fails, insult people's intelligence.
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And, as far as I'm concerned, anyone who demands such support is likely being a disingenuous participant in the dialogue, looking to derail it into a nitpicky, tedious footslog of ponderously qualified language.
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I actually did post a lot in that thread (which is why I have a link to it), but most of my interaction was actually with another poster, and not with A_F. I should add that, for as much as that other poster and I disagreed, I actually rather enjoyed most of the debate with him, I learned new things by engaging in it, and was never angry about having had the discussion.
Blue
American Steele: 50 BS/Inv
Nightfall: 50 DDD
Sable Slayer: 50 DM/Rgn
Fortune's Shadow: 50 Dark/Psi
WinterStrike: 47 Ice/Dev
Quantum Well: 43 Inv/EM
Twilit Destiny: 43 MA/DA
Red
Shadowslip: 50 DDC
Final Rest: 50 MA/Rgn
Abyssal Frost: 50 Ice/Dark
Golden Ember: 50 SM/FA
Fair enough, and it does indeed all depend on how much stuff you are including. Continuing education is important, especially as new technologies/advancements in current tech arises. Need to stay on the ball here (hell going from OpenGL 2 to OpenGL 4 requires a bit re-education).
And chances are that there are also similar things for Nvidia and ATI to attend as well. |
Trying to put down the information she provided because you think you know better doesn't prove you right either. This is a person of reknown character that has the respect of many people (not juts fans), and has offered her services in multiple ways to help save this game in one form or another. I'd say that places her head and heels above people that come to these boards and try to crap all over them with their "superior knowledge".
You can claim whatever you want that makes ML an "authority," but when she is wrong on the facts, she is wrong. I'm not dumb enough to accept everything based on what a "respected" person says, but go ahead and enjoy your certainty.