You're severely overestimating the overhead for the virtual pets. The individual pets themselves likely took no longer than 200 manhours to produce from conception of idea to completion, considering all involved, and that is likely a gross overestimate. The development of the virtual petstore I would not consider overhead for this specific virtual product as it was not made exclusively for it. So 200 man hours, even at $100 an hour (again, a gross overestimate), is $20,000. So it cost Blizzard $20,000 to create that one non-combat pet.Originally Posted by Dreamless
The upkeep of the servers and bandwidth as well are also negligible. The cost to host a moderately popular online store (say the blizzard pet store) is far less than $1000 a month. Even if you throw in the maintenance cost of hiring people to look after said store, I would highly doubt it would even take more than a couple of employees' full work effort to maintain such a store. And again, this store is not exclusively for the pandaren pet, so the overhead costs are divvied. So, let's assume a $100,000 yearly overhead cost (which again, gross overestimate).
So even if you used the ridiculous overestimate of $120,000 in overhead to create and sell the pet, that's still almost a million dollars in profit. Even if you went as far as to say that it cost half a million dollars to create this one virtual pet, and offset the cost of the hosting fees and development fees of the site, that's still half a million in profit, which again, is still a large profit for an arguably useless virtual pet.
I never said they didn't have overhead. Those overhead costs are required to operate, the rest goes to charity. Most of Blizzard's profit on the other hand is either grabbed up by Vivendi, or given out to the big fat multi-million dollar bonuses given out to Acti-Blizzard's execs.. Of the 50% Blizzard kept, likely far less than 20% of that went to expenses. Not bad you don't care about who you're taking money from.And if you think 100% of all donations go straight to the people being serviced by the charities; you're delusional.
The charities themselves have a huge amount of overhead, simply by the pure fact that they're organizations of people who need to be compensated for their time and effort, and wear-and-tear of equipment and services.
Quick check of the Make-A-Wish webpage shows roughly 76% of the money they take in going towards their charitable activities; are they now 'sleazy' because they don't put 100% into it? Because if they did; they would be out of business within weeks.

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