Fib I was also thinking. A lot of people think that there is a certain magic number with regard to subs that will make this company profitable. But, what often is not taken into account, is the cost to run the business itself. I'm speaking of the employees (across numerous states), the DCs (which takes some form of management across numerous states), the inventory (which would indeed have to grow with an increasing sub-rate), and the price of new releases (even in bulk and especially games of various platforms). This accounts for a large part of the expenses that aren't spelled out very well in the reports from what I've seen. Now couple that with marketing and professional fees as well as new endeavors and I would expect that expenses will increase with subscription growth. I agree things could be done better to increase the profit/expense ratio, but lets face it, this is a tough market with lots of competition. I think they made the right move retain the services of Moroch and it should help. But, in order for this to take off, managment needs to decide which way they ultimately want to go overall and stick with the plan.
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