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Old Republic needs 500k subscribers for profit

Old Republic needs 500k subscribers for profit

CFO Scott Brown says rumours of exorbitant dev costs are greatly exaggerated

EA believes that around half a million paid subscribers are needed for BioWare’s upcoming MMO, The Old Republic, to return a profit.

The dev budget of the upcoming MMO is rumoured to have soared past the $100 million mark – a claim that EA has called into question, but not flatly denied.

EA has not specified a number, but said the game is accumulating "significant” development costs.

Yet EA CFO Scott Brown says the game doesn’t need to break world records to be highly profitable.

“At half a million subscribers, the game is substantially profitable, but it's not the kind of thing we would write home about," he said.

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"Anything north of a million subscribers, it's a very profitable business."

The wording here is key. With MMOs traditionally pulling in monthly subscription payments, the term ‘profitable’ may be one projected over a subscription period.

If The Old Republic cost, say, $100 million to develop, that would mean each of its 500,000 subscribers would have to pay $200 each to pull the project out of the red.

If the game cost half that to make – at $50 million – each of the 500,000 subscribers would have to pay $100 each.

Yet Brown insisted that the dev costs would "essentially turn on a dime" to profit on release day if 500,000 copies were bought.

He insists the dev costs have been highly exaggerated.

"There's been a fair amount of talk on various blogs describing spends that are vastly higher than anything we've ever put in place," he said.

Without providing specifics in reply, Brown said: "Don't read gamer blogs as having any substance. They bring a chuckle, but they also bring a frustration for those that are being responsible with the management of EA's R&D dollars."

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