The guessing about how much party is making is over!!!

[AngusThermopyle]

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Michael Jackson, currently chairman of software firm Sage Group, was named as non-executive chairman.


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So Party will start offering "12 max" tables?

[Voltron87]

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Michael Jackson, currently chairman of software firm Sage Group, was named as non-executive chairman.


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hahahahaha he shoot he scores!
So Party will start offering "12 max" tables?

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[Kevin K.]

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I've been preaching that economic theory dictates that Party is going to make alot less money per customer over the coming years. You just can't sustain this kind of profit margin in a free market.

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Party is a virtual monoploy right? What kind of margins are Microsoft and other monpolies averaging?

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Party is not a monopoly. Yes, they have a huge market share, but they don't have control of any particular product or service. There are plenty of sites out there and there will be plenty more, I am sure.

[sfwusc]

KO Profit Margin (ttm): 21.32% (from yahoo.com)

They are 100 years old. No rule says they have to go to low profit margin.

-SFWUSC

[threeonefour]

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Party is a virtual monoploy right? What kind of margins are Microsoft and other monpolies averaging?


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neither party nor microsoft are monopolies. and its not even close. and i very much doubt microsoft is coming even close to the 35% profit margin someone above quoted.

[krimson]

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They out 400 million out of degenerates already? I wonder how many years it will take before everyone goes broke?

p.s. it will happen, games do get tougher every month

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That's like saying all of America will eventually go broke because of how much money they spend on fast food. Money circulates.

[TheHammer24]

Thats just disgusting. It's criminal to believe they can sustain that kind of profit margain over the next couple years. They will remain number 1 in online gaming, but if other sites pick it up, party will be forced to either reduce rakes or more likely, increase boni in order to sustain their share of the market. It just free market logic. New entrepeneurs will see the money in online gaming and the industry will be saturated with sites. The only way they will be able to stay afloat is to earn x amount of rake which will come from x about of players. The only way they can attract players is by offering the best product/deal. This in turn translates to either lower rake or more boni. It may not happen in the next couple years, but within ten years I predict this will be the case. Party's profit margin will be down by then.

[Freakin]

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They out 400 million out of degenerates already? I wonder how many years it will take before everyone goes broke?

p.s. it will happen, games do get tougher every month

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That's like saying all of America will eventually go broke because of how much money they spend on fast food. Money circulates.

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Agreed. Look at a single table. if no new players showed up, everyone would go broke.

Freakin

[og5]

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neither party nor microsoft are monopolies. and its not even close. and i very much doubt microsoft is coming even close to the 35% profit margin someone above quoted.

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Virutal monopoly = driven by customers (who buys linux?)

Someone posted a link that showed the traffic numbers each site generated. Party was #1 by a huge margin with more traffic then the next 4 or 5 sites combined. With so much market share I think they qualify as a customer driven monopoly.

[highlife]

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Thats just disgusting. It's criminal to believe they can sustain that kind of profit margain over the next couple years. They will remain number 1 in online gaming, but if other sites pick it up, party will be forced to either reduce rakes or more likely, increase boni in order to sustain their share of the market. It just free market logic. New entrepeneurs will see the money in online gaming and the industry will be saturated with sites. The only way they will be able to stay afloat is to earn x amount of rake which will come from x about of players. The only way they can attract players is by offering the best product/deal. This in turn translates to either lower rake or more boni. It may not happen in the next couple years, but within ten years I predict this will be the case. Party's profit margin will be down by then.

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Perhaps you don't realize how INCREDIBLE their profit margin is. At 35% currently, they could lose two thirds of that and still far outperform nearly every other corporation in the world making over 1B in gross revenue.