MMO development still riddled with risk
With all the new MMO titles in development, sometimes it's easy to forget that running a profit in this business is actually something of an accomplishment. Starting development on a big-budget subscription-based game, with the barrier of entry purportedly being as high as $1 billion, seems like an extraordinary risk for all parties involved. According to analyst Piers Hardings-Rolls, this cut-throat trend is only deepening.
Their research shows that popular new development strategies, like purchasing lucrative intellectual properties and importing cheaply-developed MMOs from Asia, has done little to shake up the subscription-based business, where most of the profit is still concentrated in a few extremely successful titles. We were a little disappointed that their research didn't touch on the increasingly-prolific free-to-play/microtransaction model, but we suppose that'll have to wait until another day.
