What about parents who can’t be there all the time because of work?

Play Vision

The Mechanics

GAMES

PUZZLES

MATH HELP

RACING GAMES

PUPPET CREATOR

Who would buy Play Vision?

The CompetitionProduct Price

LeapFrog Quantum Pad $89.95

Leapfrog Tag $35.00

Leapster L-Max $100.00

Iquest Interactive $61.00

Average $71.49

PSPgo-Piano Black $249.99

PSP 3000 $169.99

Nintendo Dsi XL Bronze $189.99

Nintendo DS Lite Metallic $132.97

Averagae $185.74

Source: Amazon.com

Assumptions          

2010 2011 2012 2013 2014

Number of Children in US (ages 2-10) 40,000,000 40,366,000 40,732,000 41,098,000 41,464,000

Ratio 4:9 4/9 4/9 4/9 4/9 4/9

Number of Children in US (ages 2-5) 17,777,778 17,940,444 18,103,111 18,265,778 18,428,444

Percentage of children willing to buy a reading unit 19% 19% 19% 19% 19%

Percentage of households in a higher socio-economic bracket 26.7% 26.7% 26.7% 26.7% 26.7%

Potential market 900,516 908,755 916,995 925,235 933,474

           

Average sale price per unit $200.00 $196.00 $194.00 $193.00 $193.00

Wholesale margin 50% 55% 60% 65% 68%

Wholesale revenue per unit $100.00 $107.80 $116.40 $125.45 $131.24

           

Implied TAM $90,051,556 $97,963,818 $106,738,217 $116,070,694 $122,509,184

Market Share 2.3% 2.5% 2.6% 2.7% 2.8%

Revenues $2,107,397 $2,407,189 $2,747,690 $3,123,745 $3,440,369

Play Vision