People should know better than to trot out the hoary “If I can get 1% of the market, then that’s worth …” cliche. Apparently not, however, and an article today on mobile gaming seems to be paraphrasing John Fisher of DFJ in committing the error:
“If a game maker can get 1% of that market — five million subscribers — and charge subscribers $3 to $4 a month for one game, that’s equal to annual revenue of between $180 million and $240 million.”
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$3 or $4 a month is way too high. Annualized that’s what somebody would pay for a regular game.