Originally posted by miko2d:
..... If they ever wanted to just make money with a mass-appeal simplified arcade flight game, they could have just dumbed down the existing FM in some arenas and sold it for $10/months, like iEN did. In fact they may still do that while continuing to make the most realistic flight sim for the dedcated hard-core simmers at $30/month. But if they ONLY wanted to make money, they could have spent much more time over the last year on the mass-apeal features like eye candy, planeset, etc. instead of flight modelling and damage realism. The padlock would have been the first feature along with many SA crutches present in the other lite sims.....
Nope, sorry partner.
Back in the late 60's, I once had a Sales Manager who's region was burning cash and not profitable sit in front of me and say, "If we lower our prices, we'll make up our losses through volume."

He actually believed that revenue increases through price reductions was the secret to a successful business. Needless to say, he found other employment with our competition to help them out.
The following was part of a lengthy discussion thread on this topic and was extracted from our flight sims on-line business focus discussion group.
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Dale Addink (Hitech) said in a public investor's news release:
Start of quote
"10,000 to 20,000 dogfight fanatics to pay $30 per month to play the game. (Ten thousand customers will give the firm $2 million in yearly profits)."
"This year's goal is to sign up 2,500 customers. That will put the company past break even by the end of the year, he says."
End of quote
......they should be break even (cash neutral) by the end of December. So, what happens if before then, iEN sets a $15.95 flat rate and/or Playnet makes a tactical pre-emptive marketing move to help HTC's cash drain, by pre-announcing their own flat rate levels of somewhere between $9.95 and $19.95 per month?
I would assume that to prevent growth from stalling out, that HTC would be forced to drop prices and if they went down to $15.95/month, then they'd need over 5,000 sign-ups just to get back to break even, not counting any incremental equipment costs needed to support the higher numbers.........
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miko2d, the real answer IMHO, is that the product subscription fees are never going to provide enough revenue to achieve profitability for an on-line business which provides ONLY virtual flight sim entertainment. The secret to unlocking true sustainable profitability is through value added selling, over and above the base subscriptions (ie: Vanity Plates), plus diversification into other genres of on-line games. WWIIOL has the right idea, but wow!!!....35 plus people and no revenue stream until next year has to give one a great pucker factor if you're an investor in Playnet.

Anyway, OT and food for another discussion in the appropriate forum.
Regards,
Badger
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