Sup all... I was reading around some articles related to economy, stocks and all that stuff in that line, those articles are kinda easy to come by in msn, yahoo, even google, considering the economical situation right now in the world, talking about economics seems to be the new swing...
But let me tell you something, right now I am not really going to analyze world economics, lol, the only reason for me to write down this entry is because I notice the old myth that doesnt want to die, stills around shaping peoples minds in a wrong way... which myth you will ask, well let me put it into the next formula using WoW subscription rates as one example...
(15 dollars) (11,000,000 subs) = 165,000,000 dollars, or bucks!
People take that as a whole and solely true!!!!!
But let me tell you something, that is absolutely wrong, that is kids thinking, or domestic thinking, the one you do at home. In a more bigger corporate level, things work differently, for the worst of the corporation and for the better of the government. lol!!!
WoW claims to have 11m subs, and let me explain something I just figured out, (with some simplification at some extent), from those 11m subs, the average payment is 14 bucks, not 15, why? Because there is 3 subscription types in the credit card options 15 per month, 14, for 3months , and 13 for 6 months.
(to have one exact number or average payment per subscription, blizzard will need to release those numbers, and I dont think they will give me those numbers to me, but in general this number seems kinda logical)
Now the first step in the equation is
(14 bucks) (11,000,000 subs) = 154,000,000
here we have the first down, 11 million dolars arent lost, they never existed at all
the next step will be... TAX!!! (also simplified because there is deductibles, liabilities and such, not that is that great considering blizzard is just a company of entertainment lol, also tax % are averages, as they change each year in the tax rate tables)
154,000,000 - 8.75% City Tax = 140,525,000 (US will leech some blood out of you)
140,525,000 - 8.84% State Tax = 128,102,590
128,102,590 - 38% Federal Tax = 79,423,605 dollars!
154,000,000 - 2% Credit Card, and bank transactions fee, calculated at the time of the 14 dollars transaction (average number too) = 3,080,000
79,423,605 - 3,080,000 = 76,343,605
$76,343,605 / 11,000,000 = $6.94 per sub
The numbers are raw, and a bunch of numbers are averages, based on information that runs around and not official one, not to mention that some things are rounded and the tax table I use for this was the 2008 one. But in general you got an idea of the picture around, not the old MYTH!!!!
In general blizzard doesnt take the 15 dollars or 14 dollars home per sub... after all the taxes and everything, they only get half of that... or less!
Plz leave some comments if u have more insight on this.. or some more details and data that can help out shine a bit into this matter... Thx