CompuServe Messages

#Falcon 3.0 for the Amiga

    07-Nov-92 21:16:34
Fm: Jim Nangano/SYSOP 76703,4254
To: Peter M. D'Angelo 76600,2043
Peter, Reality and your numbers simply don't agree. 3 man-years of development and two man-years for support costs more than $125K. More in the range of $200K to $250K or more. On top of that, what about hardware costs? Software costs? QA costs? Other costs of doing business? Most of this is money invested before any returns are seen. Even that costs money. Second, if you're talking average price of $45 per unit, you are probably talking about a SRP of $60, of which SH is probably getting anywhere from a low of 32 percent to a high of 40 percent. Being optimistic, we're talking a 'take' of $24 per unit. So maybe we're talking about the possibility of breaking even if they sell 20K copies. However, 20K is a bit high (although not unreachable) for an Amiga product — especially if that Amiga product requires more hardware than the "base" system of a 1-meg A500 with 2 floppy drives. However, I'm not sure you want to consider the realities. You effectively ignored my previous message about the hardware requirement issues. Remember that these decisions have to be made on the basis of facts, not emotions. I'm as much of an Amiga enthusiast as you, but I'm also in the position of having to decide the platform directions of a company involved in the development of Entertainment Software. Trust me – it's not an easy decision to make. (Note that I am in no way associated with Spectrum Holobyte). – BobR