Quoted from rai:
I know he's not got the overhead of Stern or JJP with dozens of employees and whatnot that cost lots of money.
But lest say if the costs to develop an entire platform, hardware, software interface and develop two games just thinking of MG and RAZA at the moment let's say a total of 175 games.
50+125 = 175 games.
If it takes him 4-5 years and whateve salaries and equipment, CAD computers and 3D printers, vendors etc..
Let's say $800k R&D and equipment, vendors etc.. plus overhead (for 4 years let's call that $400k-$500k) $1.2M-1.3M
That's $7K per pin with and average selling price per pin of $12K
So he should have excess money to pay for the actual parts and assembly of the pins let's say $4K with leftover $1k profit per machine or money held back to deal with warranty and code fixes or cost run overs.
So it looks fine if my numbers are correct, but if the R&D and overhead are more than that, the remainder to build the pins get smaller.
What about his facility rent, utilities, payroll taxes, insurance etc...
I rent a a flex space with offices and a small warehouse outside DC and rent is nearly $6k a month. Assume best case scenario his rent is $3k, that's $36k a year. How long has he been in his new place? 3 years? That's over $100k in rent alone.