I'm not too familiar with LR Games, so can someone explain their business model? Like, I figure that they would have more copies of games available in order to make a profit but...I dunno. *shrug*
I know what you mean but bringing in $200,000 in sales in a few hours isn't enough profit to keep a few people on? they bring in 50,000-100,000 in sales every game they release and every platform its on, and assuming a 60-40 split they will make 20,000-40,000 profit each release. that's ignoring the fact that they also publish their own games through this method.
after all they are Mighty Rabbit studios.
or do you mean this. since they directly sell to the customer they do not need to pay the costly fee to get the games rated by the ESRB or whatever they are. by doing one run in larger quantities like they do it reduces cost per game to make (instead of having an open print run and maybe only making 100-200 at a time). they specifically search for games that are already made (only in digital format) so there isn't a large cost to making the games on disc. these games they pick have already been out for a while and have somewhat of a fan base (helps them better determine the print size and reduces cost). the customer pays the shipping (reduces cost).