# Diablo Financial Model Condor, Inc. proposes a PC RPG ("Diablo") with randomly generated dungeons and a collectible expansion pack revenue stream. - Canonical: https://finamodel.com/startups/diablo - Excel download: https://finamodel.com/startup-models/diablo.xlsx - Category: Media/Gaming - Model type: SaaS ARR / Valuation - Founded: 1994 - Geography: US (PC-compatible; reference to Electronics Boutique retail chain). [DECK] - Customer: B2C ## About the company Diablo was pitched as a turn-based isometric RPG in which players descend procedurally generated dungeons to defeat its namesake antagonist. The Dynamic Random Level Generation system makes repeat playthroughs different, while modem or network multiplayer includes a competitive arena dungeon. The commercial design paired a boxed retail base game with collectible expansion packs sold at the point of purchase. Each roughly $4.95 pack would add items, creatures, traps, and level graphics; the planned 16 or 32 variants drew explicitly on the collectibility of Magic: The Gathering. This is a single-title project model, not a live-service forecast. It should stage a 12-month development budget before launch, then forecast retail base-game units, expansion-pack attach rates and repeat purchases, physical manufacturing and freight, retail and publisher deductions, marketing, cash breakeven, and sales decay over three post-launch years. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - Turn-based isometric RPG; player creates a character and descends a procedurally generated dungeon to defeat Diablo. - Dynamic Random Level Generation (DRLG) System ensures no two playthroughs are identical, driving replay value. - 2-player and multi-player via modem or network with a competitive "arena" dungeon. - Expansion packs (~$4.95 MSRP): single floppy disk + card containing new items, creatures, traps, and level graphics installable directly into the base game. Designed as collectible point-of-purchase impulse buys. - Inspiration cited: Magic: The Gathering collectible model. ## Revenue model - Revenue stream 1 - Base game: Standard retail PC game sale. No MSRP stated. Typical 1994 PC game retail price ~$40–$50. - Revenue stream 2 - Expansion packs: ~$4.95 per pack, sold at retail registers (Electronics Boutique cited) as point-of-purchase / impulse items. 16 or 32 distinct pack variants planned. - Channel: Retail boxed distribution (physical floppy/CD). No digital distribution mentioned. - Collectibility mechanic intended to drive repeat expansion purchases per player. ## Competition / moat - Deck positions Diablo as filling a "neglected niche" vacated by games that have moved toward "multimedia extravaganzas" and needless complexity. - DRLG system cited as differentiator for replayability and expandability. - Expansion pack / collectible model described as having "no real competition" in the computer gaming world at the time. - No named competitor titles or market-share data cited. ## Team & funding ask / use of funds - Developer: Condor, Inc. (company behind the pitch). - Planned team (slide 7): 1 designer; 1 chief programmer + 2 junior programmers; 2 art director/artists + 1 illustrator/sculptor + 3 pixel artist/illustrators; 1 music/sound effects person. Total ~11 people. - Development timeline: 1 year. - No funding ask dollar amount, valuation, or use-of-funds budget stated in deck. ## Recommended financial model - Archetype + why: **Game studio project P&L / title economics model.** This is a pre-production pitch for a single game title with an ancillary consumable (expansion packs). The right model is a title-level P&L: development budget, unit sales forecast for the base game, and a recurring expansion-pack revenue tail - not a SaaS ARR or 3-statement operating model. If the publisher/investor wants a full company view, a simple 3-statement wrapping the title P&L is reasonable. - Forecast horizon & granularity: Month-by-month for the 12-month development phase (cost only); then quarterly for Years 1–3 post-launch covering base game sales and expansion pack revenue. - Key drivers & assumptions: - Development headcount: 11 people, 12 months - Average fully-loaded developer cost per month: ~$6,000–$8,000/person/month (1994 small-studio rates); total dev budget ~$800K–$1.1M - Base game MSRP: ~$45 (mid-range 1994 PC game) - Publisher/developer revenue split: developer net ~30–40% of MSRP after retail and publisher cuts (~$13–$18/unit) - Base game unit sales Year 1: 50K–200K units (wide range; no deck data; comparable 1994 mid-tier RPGs used as reference) - Sales decay: 50% decline Year 2, 25% decline Year 3 - Expansion pack MSRP: $4.95; 16–32 distinct SKUs planned - Developer net per expansion pack: ~$1.50–$2.00 (after retail margin; lower-cost item so retail take is proportionally smaller) - Expansion packs purchased per active player per year: 2–4 (collectible mechanic; Magic: The Gathering parallel cited in deck) - Attach rate (base game buyers who buy at least one expansion): 20–40% - COGS (disc duplication, packaging, freight): ~$3–$5 per base game unit; ~$0.50 per expansion pack - Marketing & distribution: ~10–15% of net revenue (point-of-purchase focus reduces traditional marketing spend) - No ongoing live-service costs (1994 single-player + modem; no server infrastructure) - Scenarios (Base / Bull / Bear - which variables flex): - Bear: 50K base game units, 1.5 expansion packs/player, 15% attach rate - Base: 120K base game units, 3 packs/player, 30% attach rate - Bull: 250K+ base game units (breakout hit), 4 packs/player, 50% attach rate; second expansion series launched in Year 2 - Required sheets / outputs: 1. Dev budget (headcount × months × cost; by department: programming, art, design, audio) 2. Sales forecast: base game units × net per unit by quarter 3. Expansion pack revenue: active player base × attach rate × packs/player × net per pack, by quarter 4. P&L: Net revenue − COGS − development costs − SGA = Operating income 5. Cash flow / breakeven (months to recoup development investment) 6. Scenario toggle (Bear / Base / Bull on unit assumptions) ## Frequently asked questions ### Is the Diablo financial model free? Yes. The Diablo model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.