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Re: ekabeht post# 3884

Friday, 07/01/2011 3:53:34 AM

Friday, July 01, 2011 3:53:34 AM

Post# of 5961
I've read as rule of thumb that a Million player game can produce 5M to 10M in yearly revenue with gross margins of 40-60%. If we have a hit here and can get 10 more then we'd have a company that can do 40-60M in net income from gaming alone. What multiple would you put on that 40-60M on a company growing 40% yoy in active users. Maybe 20X-40x PE right?

This might work out after all. Heck a sustained double digit PPS for XMAS would be great.