Frank_Supercell

To be fair, it's rather unlikely that in above scenario anyone would sign off on esports in the first place, given the unclear return of investment.

Esports would likely be something like 1% of revenue or $80,000/month in our example - I'd be surprised if more than $20,000/month could be made available for price pools - that's $240,000/year including finals, etc.

In all of this there's not even talk or growing the company or creating other games...

You might also run out of cash before you turn a profit = company dies if you can't find further investors/a buyer. Depending from where that money comes from in the first place, there might be angry board meetings pushing you to do things you don't like.

Good luck trying to retain the best industry talent under these circumstances in a hyper competitive market.

In all of this: bonuses are often based on profit sharing. So as long as you don't generate a profit, employees will likely be stuck with their base compensation, company shares aren't worth much if you don't get dividends and you can't sell them.

There's a gazillion other micro things going on ofc. How long to players stick around (retention)? Can you improve spending? Does it simply take 24 months to get the payback from the User Acquisition?

Depending on your cash from initial investments you burn through that until you start to turn a profit once the payback happens or you improve any of the other factors.

None of these guarantee success. In above example, if we'd invest a fixed 20% of topline revenue, that'd be $1,600,000/month which means we'd operate at a loss of $144,000/month or $1,728,000/year.

Some companies spend more than they make (and generate a deficit), others re-invest everything they have left and others invest a % of topline revenue.

That isn't profit. To sustain the DAU/MAU you need to re-invest. Many companies invest heavily in marketing in order to acquire new users, looking at variable payback times until profit happens.

VAT = $1,600,000 (tax authorities)
Revenue = $6,400,000 (company)

Total Revenue = $6,400,000
Platform Fee (30%) = $1,920,000
Taxes (21%) = $1,344,000

Remainder = $3,136,000
Cost (see above) = $1,680,000

Remainder = $1,456,000

Let's assume the 5,000,000 DAU translates into about 20,000,000 MAU (monthly active players), which will vary a lot depending on how casual or hardcore your game is.

20,000,000 x 5% x $7 USD = $7,000,000
20,000,000 x 5% x $1 USD = $1,000,000

Let's now assume 5% of your players spend $5 USD/month on a Battle Pass + another $2 USD/month on cosmetics and 5% spend $1 USD/month on progress. That spend includes VAT. Let's say that averages at 20% depending on where that purchase is made.

40 employees x $17,000/month = $680,000/month

So we'd look at a basic running cost of $1,680,000/month.

Some fixes and some balancing. One buff didn't make it into the notes:

✅ Mandy's delay for longer range was reduced by 40%

#BrawlStars #Maintenance

@Devourlick Bastard Burgers!

@Lulumi_Lu @BrawlStars It's somewhat confusing me - 2 are functions, 1 is skill requirement?

@AdrianHaggqvist

My friends just voted to skip on the Donut Burger... but would you?!

#foodies #donutburger