Originally Posted by
Artemol
The only possible reason blizz are suspending 130k+ accounts this month is amazing.
They probably have statistics on how many of the banned accounts - people buy new licenses and more game-time.
There's no possible way for investors to like the fact that they would be losing out on:
136.000*14.99= 2038640 (2.04m $) a month.
LETS DO SOME CALCU
based on the new assumption that at least 50% of the suspended players buy new game licenses immediately after being suspended.
How much does Blizzard lose monthly from the suspensions?
Loss per month
=
136
,
000
×
14.99
Loss per month=136,000×14.99
Loss per month
=
$
2
,
038
,
640
Loss per month=$2,038,640
How many new game licenses do they need to sell to recoup the lost monthly revenue?
Number of licenses
=
monthly loss
cost of a new license
Number of licenses=
cost of a new license
monthly loss
Number of licenses
=
$
2
,
038
,
640
49.99
Number of licenses=
49.99
$2,038,640
Number of licenses
≈
40
,
778
Number of licenses≈40,778
How much revenue do they gain from selling new licenses to 50% of the suspended players?
Revenue from new licenses
=
0.5
×
136
,
000
×
49.99
Revenue from new licenses=0.5×136,000×49.99
Revenue from new licenses
=
$
3
,
399
,
320
Revenue from new licenses=$3,399,320
So, Blizzard would gain $3,399,320 from selling new licenses to 50% of the suspended players.
How many players return each month?
Returning players per month
=
0.05
×
136
,
000
=
6
,
800
Returning players per month=0.05×136,000=6,800
How many of these players subscribe again for 1 year?
Annual subscribers
=
0.5
×
6
,
800
=
3
,
400
Annual subscribers=0.5×6,800=3,400
If each of these 3,400 players subscribes for a year at $14.99 per month, the revenue for Blizzard would be:
Annual revenue per player
=
14.99
×
12
=
$
179.88
Annual revenue per player=14.99×12=$179.88
Total annual revenue from these players
=
3
,
400
×
179.88
=
$
611
,
392
Total annual revenue from these players=3,400×179.88=$611,392
Considering just the immediate gain from the licenses and the first month's returnees:
They earn $3,399,320 from selling new licenses.
They lose $2,038,640 from the monthly subscription of the suspended players.
They gain a potential annual revenue of $611,392 from the players who return and subscribe for a full year.
Thus, even with the loss from suspensions, they stand to gain from the players purchasing new licenses and from the returning subscribers