Let me hit the high points on the idea I have.
-It's a game to be released on Xbox Live Arcadefor 400 Microsoft Points.
-The $20 1600 point cards you can buy at the store actually only cost about $16.00 when you take out the retailers and wholesalers' shares, meaning that each sale will actually be about $4.00.
-The budget for the game is $209,636 for a three-man development team with a 1-year development cycle.
-Two of the men get $63,000 for the whole year's project (that's ten hours a day, six days a week, for fifty weeks, at $18.00 an hour, with overtime paid accordingly). The project lead will receive a flat $72,000 ($6k a month) for his leadership services.
-$9,300 for three game-development laptops (the kind they use at Full Sail University), plus a $2,000 development kit, and three $100 desk-and-chair sets for each person, with a 12% sales tax.
-We'll be working in an old garage owned by the project lead, so lodging is free. Add it all up, and you get $209,636 for the hwole project.
-Microsoft will take out fifty cents per share for their licesning fee, leaving us with $3.50 per sale.
-We release the game during the summer, partly to give the consumers some relief from the summer drough, and partly to avoid having to compete with the AAA holiday titles.
-We pay our investor, not on a flat loan basis, but by giving him a commission of $3.00 per sale. This means that his break-even point is estimated at 70,000 sales, which is often considered a pitiful amount of sales (THQ's Sphinx and the Cursed Mummy, for example, was chastized for selling only 116,000 units). I like this idea because it means the investor has unlimited profit potential, and the developers have no traditional liabilities, meaning there's no bankruptcy or breach of contract unless we BS him on how many sales we've made.
-The two employees will each get a commission of tencents ($0.10) per sale, meaning that, at the break-even point, they will have $7,000.00 in commission bonuses.
-The project lead will receive the remaining twenty cents comission on each sale, meaning the break-even point will give him $14,000.00 in commission bonuses.
What do you think? If you had the $210,000 to fund this project, would you?
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