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However, the higher the difficulty, the less profitable the fan shop is in early/mid game, and the more employees you add, the less profit you'll end up getting - because each employee will cost you at least $1000 a month but generate much less than that.
What does affect fan shop profitability is having many IPs at 5.0 rating, but to get there you could be undermining your early game growth, for a room that is - at best - a sidequest.
I can imagine at normal speed it might give the illusion of infinite orders, but there is a cap.
In Legendary, the employees seem to take forever to go through orders even at Very Fast speed, which may help create the illusion of "infinite orders" too.
I'll admit that, since the "usefulness" of the room is only there if one has many IPs (which I seldom have) and in late game (where "more money" is not a need anymore) I usually don't build any support rooms for fan shops. Getting 2k extra fans per month/week is a much better use of all the extra money.
* The number of times I've had unwanted side-effects from memory editing or "curated"/"pro version" trainers... Yeah, "cheat mode" is not a valid metric for anything.
A good way to test it is by dropping a merch room at the start of the game. You'll see that for the first few weeks you'll sell maybe 10 mugs once the game is released and if you throw all your staff at it the orders will stay the same and slowly increase as sales and the IP grows.
I don't know whether there's a a backlog system for "taking" all the orders, like there is with support requests. If that's the case and you're woefully understaffed, then you'll get the illusion of infinite orders because you wouldn't really be making a dent in the order backlog.
For arcade machines I ended up going for an "outlived their usefulness" method and just remove games before they run their natural course. Even in Legendary if you make a lot of games and port everything, you end up getting swarmed by arcade orders, so I simply remove an arcade game when the arcade sequel is ready for releasing. Since I time things so releases are yearly ("just add spin-offs!") they still give me quite a lot of money anyways.
Still, it's there if you want to look at it.