[casual_games] casual MMOG: help needed with business assumptions

[Cole, Vladimir]

Doing a simple analysis (for class) and am looking for some advice and
guidance on assumptions that I should make. I've been subscribed to this
group for about a year and have seen some very quality guidance shared,
so I'd love it if even one or two of you could take the time to send
feedback.

The product: a casual MMOG (that is, a MMOG that appeals to a broad base
of players, not just the hardcore) built for a high-end mobile phone. 

The assignment: simple NPV analysis for the project. 

Assumptions that I'd love this group to help pick apart: 
========================================================
[] Game lifespan: 10 years

[] Development costs: $4MM initial costs, $500k to $200k per year
thereafter (for maint and testing)

[] Marketing: assuming $30 per customer as an acquisition cost

[] Customer service/tech support: $5 per customer per year assumed

[] App size: ~50MB

[] Distribution: $2 per application installed (average rate for cheap
digital distribution and more expensive physical distribution)

[] Churn: ? (not sure what sort of churn rate to apply)

Other than SG&A, what other major categories of expenses should I be
sure to include?

Other feedback? 

I'll gladly share the finished spreadsheet with this group.

Thanks! 



===================
Vladimir Cole
vc at vladcole.net
Cell: 212.281.1090
Home: 206.801.1735