This isnt uncommon , many companies operate for years before actually posting a profit. Thats what the terms 'in the red' , operating at a loss, and 'in the black' , operating and turning a profit mean. Many companies will go for years 'in the red' before actually showing real results, they're making more money than they're spending.
With EQ, I would believe it. Figure the costs of at least 20-30 full time employees (California, so average their salaries at 75k), server hosting/maintence costs (probably 1m or so a year, they have alot of servers to maintain), part time employees (online employees, GM's, etc).
I imagine it's a pretty expensive venture. Personally 10$ a month is pretty cheap when you consider how much people play it. You spend more a money going to one 2 hour movie...
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