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1-31-2009 @ 6:23PM
There's a lot wrong with this article. Earnings do not equal revenue. If I buy a pair of shoes for $8 and sell it to you for $10, my revenue is $10 and my earnings are $2.Maybe the author understands this simple distinction, but it's confusing in the post. And as The Claw pointed out, using 11.5 mil people x $15 is flat-out arbitrary, even if all you are talking about is revenue (instead of earnings). Might as well just multiply $15 x 287 million people and say, "yeah, I could see $400 mil in earnings." I don't pretend to understand Blizzard's revenue model for WoW outside of the US and Europe, but neither should the author. If you don't understand it, don't touch it. Start by basing it off Blizzard's publicly stated US and EU subscriber base numbers and infer from there. And then say something like "but that's revenue -- remember, blizz needs to pay their employees and for data centers and marketing, etc."
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