Let's break it down- A company earns $1. How much of that does the company actually get? 1. Well first you have to subtract out who you owe first. In this case Marvel and Netmarble. Thats around $.50 2. Then you have to pay your vendors. In this case, server storage, Google play, Apple and advertising. That's around $.20. 3. Then you have S&G- Payroll, insurance, light bill etc.. Thats around $.15.
If you're lucky as a company, you'll have roughly 5 pennies left over as "profit". But the reality is that if you want to succeed, you re-invest that back into the company. In this case Realm of Champions.
Its very likely Kabam doesnt have a bank vault stacked with $100 bills that executives are rolling around in as a bonus. Bonuses are worked into the profit plan and usually aren't given for sh*ts and grins. This is how retail america works.
You can't compare an online game to retail. Are there stores across a designated area? Retail employees? Retail hours? Retail overhead?
Mobile games are hard to make money from because the market is so flooded that it's hard to get a niche of the market. If you're lucky enough to get a big enough following the ability to make profit as opposed to barely scraping by goes up dramatically. Enter this game going on 6 years now...
Amazon and Wayfair are both retail. They exist solely online and have no brick and mortar buildings to shop from. They have retail overhead and retail employees. They have gigantic warehouses to store the things they ship out and sell. Try again.
@Demonzfyre can you guys take this debate elsewhere where it will be relevant to the 0.01% of people who actually care? People right now are waiting in anticipation for any potential Christmas gift, which is what this post was made for, so do us all a favour and stop.
I really hope they give Cavalier players a generic 5* gem. That way every player can choose who to use it on. The idea of a nexus crystal just doesn't appeal to me. I already have plenty of champs. I just need to awaken certain ones.
I wouldn't be mad at a 5* nexus crystal, but tbh a 5* nexus does feel to me a like a bit of a step down from a 5* AG, even if it is RNG based. At the end of the day a nexus crystal still is too. If it's a nexus along with something else, that'd be awesome.
Regardless, I won't complain about a free gift. Looking forward to seeing what we get!
Personally I'd love shards Cavalier: 15000 5 star shards and 2000 6 star shards. Uncollected: 10000 5 star shards and 1500 6 star shards. Conqueror: 5000 5 star shards and 1 4 star crystal. Proven and Below: 1000 5 star shards and 4 star crystal.
Personally I'd love shards Cavalier: 15000 5 star shards and 2000 6 star shards. Uncollected: 10000 5 star shards and 1500 6 star shards. Conqueror: 5000 5 star shards and 1 4 star crystal. Proven and Below: 1000 5 star shards and 4 star crystal.
Quite unlikely to happen as these were the anniversary rewards (sans 6* shards)
Kabam doesn't make money from Black Friday sales any more than Blackjack dealers make money in Vegas when the players lose. Netmarble makes money from Black Friday sales. Kabam gets paid to develop a game, and it is in their best interest that existing players are happy and new players are attracted to the game.
They need the game to make money so it continues to exist, just like Blackjack dealers need the casino to make money so they can still have jobs, but in general they get no personal benefit from the game making any more money than it needs to make to sustain itself and be reasonably profitable. More money for Netmarble doesn't mean more money for Kabam, but too many unhappy players means eventually looking for new jobs. So the logical self-interest for the game developers is to try to make the best game they can that is balanced among all the different player interests they perceive, and let others worry about the revenue.
It's almost as if bonuses revolving around profit sharing or dividends aren't a thing. 🤷🏻♂️
You act as though making money for the parent company doesn't in any way put money back in to the hands of those at the developer. If you've ever worked a job in corporate America (or Canada)then you'd know how disingenuous that comment truly is.
It is almost as if you're just making stuff up, as anyone who knows literally anything about anything in this context would know that dividends are payments to shareholders, not anything related to compensation for employees. Also, posting the profits of a company like Netmarble to say anything about one of its subsidiaries like Kabam is equally nonsensical.
If you were as knowledgeable as you're trying to present yourself, you wouldn't post those. Instead, you'd do the homework and read the financials. Marvel Contest of Champions typically represents about 14-15% of Netmarbles gross revenue as reported in their financial statements. In the last full year of information Netmarble made about 2000 billion in 2018. That's Korean Wan, not dollars. At average exchange rates, that is about 1.7 billion dollars. They are on track to do somewhat better this year, as they did last year. Let's say they do similar in the full fiscal year 2019 as they did in 2017, which would be about 2500 billion krw, or about 2.2 billion dollars. MCOC would account for about 330 million dollars of gross revenue.
Typical profitability rates for a game like this are in the range of 15% or so (Netmarble's overall profitability is around 12%). Let's say MCOC is a super gangbusters profit engine and is 30% profitable. That means it actually makes about 100 million dollars a year. Netmarble bought Kabam (or most of it) for a reported 700-800 million dollars back in 2017. Remember: MCOC is a licensed property. Even 30% profitability might be a stretch, because Marvel/Disney is almost certainly getting a very good cut of this game.
Of course, Netmarble got other games besides MCOC in that deal, so it isn't just MCOC that has to pay that bill. But we can guestimate the share of the profits between Kabam and the preexisting properties because profits per share roughly doubled from 2016 and 2017 when Kabam was acquired. Which means of the roughly 260 million dollars that Netmarble made on average between 2017 and 2018, about half or 130 million is probably due to Kabam (which also, incidentally, places limits on how profitable MCOC can be alone). At that rate, the break even return on investment is about 5-6 years. So roughly between 2022 and 2023 Netmarble should break even on what they paid for Kabam.
Sure, things like performance bonuses and profit sharing programs still happen, but the vast overwhelming majority of MCOC (and all other Kabam property) revenue is almost certainly going towards giving Netmarble a return on their expense.
And if you knew anything about profit sharing programs, you'd know they are almost never proportional to actual net profits: they are a venue to share the profits of the company with employees, but they don't necessarily go up and down year by year with the magnitude of the company's profits. I say this as the plan administrator for my company, as well as the person that calculates performance bonuses for the company. We did not do as well this year as last year, but we've done well enough overall recently that everyone's performance based compensation went up a little as a result.
This is worth stating, although no person who runs a company needs to have this mentioned to them. My employees' job is not to make money for the company. Their job is to do what I tell them to do. My job is to make sure we make money while they do it.
I think we are going to get progression based presents with cavalier being a generic 5* gem.. Also.. be careful about asking questions on these forums.. it might just get you "banned" from making new posts.. Question asked..
Comments
5* to rest all
Regardless, I won't complain about a free gift. Looking forward to seeing what we get!
Cavalier: 15000 5 star shards and 2000 6 star shards.
Uncollected: 10000 5 star shards and 1500 6 star shards.
Conqueror: 5000 5 star shards and 1 4 star crystal.
Proven and Below: 1000 5 star shards and 4 star crystal.
If you were as knowledgeable as you're trying to present yourself, you wouldn't post those. Instead, you'd do the homework and read the financials. Marvel Contest of Champions typically represents about 14-15% of Netmarbles gross revenue as reported in their financial statements. In the last full year of information Netmarble made about 2000 billion in 2018. That's Korean Wan, not dollars. At average exchange rates, that is about 1.7 billion dollars. They are on track to do somewhat better this year, as they did last year. Let's say they do similar in the full fiscal year 2019 as they did in 2017, which would be about 2500 billion krw, or about 2.2 billion dollars. MCOC would account for about 330 million dollars of gross revenue.
Typical profitability rates for a game like this are in the range of 15% or so (Netmarble's overall profitability is around 12%). Let's say MCOC is a super gangbusters profit engine and is 30% profitable. That means it actually makes about 100 million dollars a year. Netmarble bought Kabam (or most of it) for a reported 700-800 million dollars back in 2017. Remember: MCOC is a licensed property. Even 30% profitability might be a stretch, because Marvel/Disney is almost certainly getting a very good cut of this game.
Of course, Netmarble got other games besides MCOC in that deal, so it isn't just MCOC that has to pay that bill. But we can guestimate the share of the profits between Kabam and the preexisting properties because profits per share roughly doubled from 2016 and 2017 when Kabam was acquired. Which means of the roughly 260 million dollars that Netmarble made on average between 2017 and 2018, about half or 130 million is probably due to Kabam (which also, incidentally, places limits on how profitable MCOC can be alone). At that rate, the break even return on investment is about 5-6 years. So roughly between 2022 and 2023 Netmarble should break even on what they paid for Kabam.
Sure, things like performance bonuses and profit sharing programs still happen, but the vast overwhelming majority of MCOC (and all other Kabam property) revenue is almost certainly going towards giving Netmarble a return on their expense.
And if you knew anything about profit sharing programs, you'd know they are almost never proportional to actual net profits: they are a venue to share the profits of the company with employees, but they don't necessarily go up and down year by year with the magnitude of the company's profits. I say this as the plan administrator for my company, as well as the person that calculates performance bonuses for the company. We did not do as well this year as last year, but we've done well enough overall recently that everyone's performance based compensation went up a little as a result.
This is worth stating, although no person who runs a company needs to have this mentioned to them. My employees' job is not to make money for the company. Their job is to do what I tell them to do. My job is to make sure we make money while they do it.
Also.. be careful about asking questions on these forums.. it might just get you "banned" from making new posts..
Question asked..
Response provided