Three illustrative paths for standing up a regional studio headquarters in a nascent market: starting up organically with debt, with government marketing & IP partnership funding, and with debt plus government salary matching. Operating income and expenses are pulled directly from the publisher proforma in the Gaming Ecosystem Worksheet (6-line revenue model + COGS + OpEx, Years 1–5 base + Years 6–10 extrapolation). Financing structure is the only variable.
Year-end total cash position (regional HQ + parent company combined) for each model.
The raw publisher proforma with zero debt, zero government support, zero capital infusion. Use this card as the baseline for reading the three financed models — the differences between them are entirely about how the early-years gap is funded, not about operating performance.
| Operating Income |
Operating Expenses |
Operating EBITA |
Regional Cash |
Parent Overhead |
Parent Cash Cumulative |
Total Cash |
|---|
Publisher funds operations with bank debt: 10% interest, 7-year amortizing payment.
| Operating EBITA |
Interest Expense |
New Debt |
Principal Repaid |
Debt Balance |
Regional Cash |
Parent Overhead |
Parent Cash Cumulative |
Total Cash |
|---|
Publisher funds operations with bank debt: 10% interest, 7-year amortizing payment. Salary matching directly reduces effective expense burden.
| Operating EBITA |
Salary Match |
Interest Expense |
New Debt |
Principal Repaid |
Debt Balance |
Regional Cash |
Parent Overhead |
Parent Cash Cumulative |
Total Cash |
|---|
Government infuses $2M/yr × 10 yrs into the parent-company global HQ in exchange for marketing and IP partnership rights. Additionally, the Government infuses $3M/yr × 10 yrs into the regional HQ ($30M total) to support the regional development industry by providing publishing services and jobs. The studio runs the same operating P&L as Model 1.
| Regional Infusion |
Operating EBITA |
Community Dev |
Regional Cash |
Parent Infusion |
Parent Community Dev |
Parent Overhead |
Parent Cash Cumulative |
Total Cash |
|---|