Originally by: Sister Megarea

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Edited by: Sister Megarea on 28/05/2011 17:18:53

Originally by: Mother Fokker

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Well with 300.000 subscribers it means that ccp makes 4.5 mil a month from our contribution. now i would like someone that knows more about bussiness than i do tell me, the 100< people that work directly on EvE and the servers rental and the damae and power water and shιt costs for the CCP offices globaly, how much you think would cost like? 5-600k? Well the problem is not the cost for developing more stuff for eve cost-profit ratio or smt. EVE players are called for to pay for the entire lot of the hundreds of people working on other project like WOD and Dust and maybe smt else. We actualy contruibute on thrie development.

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I'm no business major or CCP stockholder, but lemme take a stab at some (speculative) math:

At the end of 2010, CCP had 327,000 active accounts. Let's say, for the sake of conservatism, that 160,000 of them (50%) are paying $14/month; $2,240,000 / mo or $26,880,000 / year.
IIRC, I thought I saw somewhere that they employ ~160 people. Assuming the average of all the salaries is $60K/year, or about $80K after benefits and payroll taxes are included, that's $12,800,000 a year. No idea what rents are on converted fish factories in Iceland (or property taxes), but let's say $500K / year for building costs (rent, taxes, heat, hydro, maintenance, etc) Throw another 2 million / year for computer/server and related costs. Let's say 2 million / year for advertising and promotion (that figure could vary extremely widely) - we're already down to 9,500,000 pre-tax income. No idea what the taxes are like in Iceland, but let's say a 15% corporate tax, or $1,425,000 / year in taxes.
That's 8,075,000 in profit. Obviously, I've left some costs out, but it's probably safe to say that they're seeing anywhere from 1-4 million a year in after-tax profit.

These are total WAGs on my part, but I'd be surprised if I was *that* far off :)

Edit: Taking into account Mother Fokkers' comment, the post-tax profit could be multiplied by up to 100%, depending on the actual value of "active accounts" to "paid accounts" - Depending on how many are promos, giveaways, friends, staff, family, or what not. The idea was to be conservative, simply not to unfairly make it look like CCP was rolling in billions of cash while stomping all over us for the sake of monocles for cash :)

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