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Thread: Profit model for flight:

  1. #1
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    Default Profit model for flight:

    I'm just wondering how this whole thing is going to work.

    I'm assuming that no one makes less than 40K per year working there. (I could be wrong). IF, and that's a big IF, the team averages 40K per year, not counting the handful that probably make in the 100's, and there are 30 people on the team, then JUST in payroll before paying employment taxes we're looking at 1,200,000. The US government probably makes it about 2 million in personnel costs. They have to pay the bills at the building and they have immense production costs. There are probably also costs in materials. I'm going to rough it and guess that it costs 3 million per year to keep this team going. They have been around for two years. Let's call it a 6 million dollar project.

    At 10 around 10 dollar per DLC, there would have to be 600,000 purchases. Many of those will be the same people buying 2 and 3 themselves. Lets say 300,000. Are there 300,000 BUYING flightsim fans out there? Flight simulators used to be a lot more universal with more mass appeal. Perhaps that's what they are trying to return too. Lots of people bought FSX, to be honest. Few people stuck with it. If this title is pretty enough and fun enough, they might actually be able to broaden the horizons of flight simming.

    More than 300,000 people bought FSX. It can be assumed that more than 300,000 (in time) will download 'Flight'.

    My guess is that much of the existing customer base will still support add-ons. Perhaps they gave away too much for free. This idea is do-able and profitable, but the casual user, and I have changed my mind, may like Flight, but will have enough to have fun without buying more.
    FAA Certified Flight Instructor, ATP/Commercial Pilot and Airframe/Powerplant mechanic CFI/CFII/MEII/ATP-MEL/A&P
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  2. #2

    Default

    I would add to the costs of employing these people the health benefits and things like a 401. It's possible that in the long run (3-4 years), they may break even or bring in a profit.........aside people who know what they're buying, there's always the sucker who buys anything or doesn't know any better (Think Proflight, etc). I do not believe they will come anywhere near close to their expectations (The other 20 million). They're way off on that ambitious thinking. The proof will be in the pudding.......if they are having success, you're going to see a broader amount of offerings. If sales are tanking, it's not going to go much further than what is already available. They could've made 5 million in sales on day one had they sold to 100k people for $50. They must have a lot of faith in their plan.......I sure as heck don't!
    Ricardo
    FSThrottles.com

  3. #3
    Join Date
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    Default

    My thought is that this really has nothing to do with Flight and so it is shut down.

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