Use twelve-month cost and usable coverage, not licence price alone. The following is a hypothetical calculation, not a quotation, market average or expected saving.
Assumptions: one domain, the same intended audience, a twelve-month horizon, staff time valued at US$60/hour, and stable usable-title counts solely to simplify the illustration. Setup includes the assumed initial integration and rights-review work. Figures exclude tax.
| Cost component | Direct-studio plan | Hosted-service plan |
|---|---|---|
| Setup and initial review | $2,400 | $3,600 |
| Content/service fees | $0 | $1,800 |
| Ongoing labour | 12 hours/month × $60 × 12 = $8,640 | 4 hours/month × $60 × 12 = $2,880 |
| Hosting and monitoring | $1,200 | $840 |
| Budgeted exit work | $1,800 | $1,800 |
| Twelve-month total | $14,040 | $10,920 |
| Assumed usable titles throughout the year | 120 | 150 |
| Cost per usable title-month | $9.75 | $6.07 |
Cost per usable title-month = twelve-month total cost ÷ sum of monthly usable-title counts.
Keep the domain, audience and configuration basis identical. If coverage declines or grows, use monthly counts rather than the opening catalogue. Keep budgeted exit work visible so readers can also calculate operating cost without that allowance.
This example favours the hosted plan because of its assumed labour burden and usable coverage—not because paid distribution is inherently superior. First Look Games publicly markets its Demo Game Server as free to affiliate publishers, demonstrating that a free publisher-facing route exists; its account, studio and territorial conditions still need qualification. (firstlookgames.com)
Before buying, rerun the model with twice the maintenance hours, the buyer’s high-traffic scenario and loss of a major studio. Do not add revenue uplift unless supported by the buyer’s own suitably designed measurement.