micropayment
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MapleStory reaps over $29 million in U.S. virtual item sales
2007 proved to be a good year for Nexon in the United States, particularly with its free-to-play MapleStory. The Wall Street Journal (subscription required) reports that the although the game has 85 million users worldwide, only 5.9 million of them are U.S. players. Given the relatively small percentage of its player base located in the United States, it's surprising that MapleStory made an absolute killing on in-world transactions in 2007; the WSJ reports that 'Nexon's U.S. revenue last year more than tripled to $29.3 million from $8.5 million the prior year.'Jeremy Liew provides some additional commentary on the Nexon windfall over at Lightspeed: "With $30m in US sales and 6m US registered users, assuming a 20% "active player" rate and 10% "buyer rate", that implies an ARPU of $20/mth which sounds about right and is consistent with number we've seen from games in Asia. It sounds like the US will be following very similar models of virtual goods monetization that we've seen in Asia." It's interesting that the predominantly Asian business model of legitimized RMT is already gaining some degree of acceptance in the United States, albeit a slow acceptance. Via PlayNoEvil
Buy this box for $60 or go to hell
"Buy this box for $60 or go to hell, I don't want your money." That's the message on the tunnel vision of boxed game sales that Alex St. John, CEO of WildTangent, is trying to get across to the gaming industry. The dominant business model in PC gaming largely ignores the possibilities of in-game transactions and ad-sponsored gameplay. St. John spoke on the need to pursue new gaming revenue models at the recent ION Game Conference in Seattle and more recently, at the 6th annual Wedbush Morgan Securities Management Access Conference in New York City. Gamasutra followed St. John at both events, where the WildTangent CEO raised some eyebrows when he asserted,"In a few years any business not making money from ads is leaving half their money on the table."According to St. John, the industry fixation on boxed sales will be the downfall of a number of companies that fail to change their business models and embrace in-game or in-world revenue streams. "There's a wide open opportunity here. Anybody can get into this, and everything the traditional publishers and game companies know about doing business will ensure their failure," he stated at ION.
Dizzywood mapped by Worlds in Motion Atlas
Dizzywood is a Flash-based virtual world for kids, with a wide variety of environments to explore, ranging from Mayan-themed jungles to skateparks. Worlds in Motion took at in-depth look at Dizzywood and weighed in on how Dizzywood innovates, and how it flounders. The game is developed by Rocket Paper Scissors, who have been getting some love by the media in recent weeks. It's clear to see why; the relatively new company has a simple, compelling vision:Our aim is to create a website for kids that inspires a sense of imagination, discovery, exploration, and most of all, fun. Frankly, when we took a good look at what was already out there, we felt that kids deserved a lot better. Our hope is that through a commitment to quality storytelling, creative vision, and technological innovation, Dizzywood will deliver an outstanding entertainment experience for young people that inspires the imagination in a safe environment. Our goal is to be the most popular web destination for kids in the 8-12 age range. It's a lofty goal, to be sure, but we're all about dreaming big.Dizzywood runs in a web browser, with no additional install beyond Flash required. Rocket Paper Scissors has billed the title as free-to-play, but there are pay options to unlock new clothing, items, emotes and powers, as well as avatar customization. The games in Dizzywood are solo-friendly, but encourage cooperative play and socializing in order to solve mysteries. The excellent Online World Atlas over at Worlds in Motion put Dizzywood through its paces, ultimately finding some flaws in the virtual world, yet praising it as one of the 'tween worlds to watch. Via Gamasutra
Expect more WiiWare this Monday
Konami and Hudson both spilled the beans on two major WiiWare titles, Critter Round-Up and Star Soldier R, informing us that they will be available for download on Monday. As you all know, we're dying to get our hands on Hudson's shmup and were disappointed to not see it at the WiiWare launch. So, what about the Virtual Console? It's possible that VC fans could get the shaft again this Monday, however in Japan Nintendo has been known to release Virtual Console games alongside WiiWare games on the same day. We'll just have to wait and see, we suppose.Who's anxious to try out Critter Round-Up and/or Star Soldier R?%Gallery-20663%
UK comes together on mobile micropayments
Carriers in the UK have started to roll out PayForIt, an industry-standard solution for micropayments -- charges totaling less than £10 (about $20.16) in this case -- to their subscribers. Though there are already plenty of ways to pay for odds and ends likes games and ringtones through cellphones, that in itself is a problem; with payment services like premium-rate text messages, customers are left with a confusing experience that leave them wary of the whole process and less likely to use it again. PayForIt, on the other hand, leaves buyers with a standard receipt page regardless of what they're purchasing along with some semblance of assurance that the system is secure. Purchases show up on the next month's phone bill, at which point purchasing 650 ringtones may seem like a distinctly poorer plan (not to say we've ever done that or anything). No word on when we might see the service outside the British Isles; companies involved over there seem to be pretty amped, though, so if everything pans out, we imagine a broader launch will be in the cards.
Micropayments look small, but are stacking up
A new study by ABI research estimates that the combined revenues of console micropayments will total more than $833 million by 2011. While $833M is a hefty pocket of change, that's really all it is; pocket change. Consider that software sales alone generated $6.5 billion just last year. So by ABI's calculations, four years from now, total micropayment transactions will have grossed less than 13% of one year's worth of software sales.Still, micropayment revenue is almost pure profit (split between distributors, publishers, and developers). The content is inexpensive to produce, and is often created pre-release (heck, EA's basically been selling "cheat codes"). So while micropayment revenue might look insignificant compared to software sales, the mechanism is still pulling the change out of our pockets (which adds up) and dropping it into the industry's hands. The exchange is quick and cheap, and likely to make a few company heads even more obscenely rich over the next four years.
EA offering FIFA for free?
For the past eight months EA has been offering FIFA Online for free in South Korea. The strategy being: if you can't beat 'em (software pirates), join 'em. Much like any other company that owns digital media sought after by consumers, EA has had to contend with the free, albeit illegal distribution of its products across the internet. So FIFA Online is free in South Korea ... with a catch. EA has divided the cost of FIFA into micropayments, sold as "enhancements." Want to extend the career of a star player? It'll cost you some change. The approach has proved agreeable to consumer habits -- and presumably less conducive to piracy. Since last May, EA has sold roughly 700,000 enhancements. Cha-ching!
Lumines Live multiplayer blocked by micropayments [update 1]
Kikizo Games reports that Lumines Live's base package -- which will likely cost 1200 Microsoft points ($15) -- will not include Xbox Live multiplayer. The game's creator, Tetsuya Mizuguchi, recently detailed plans to sell multiplayer support as a separate add-on, although he added that the decision had not been finalized. Lumines Live will also feature licensed music and backgrounds available through premium downloads. The original Lumines debuted on the PSP for $40, suggesting that the base price of Lumines Live is a bargain. But charging us extra for multiplayer is a slippery slope and could usher in a series of cannibalized games crowding the casual (and cheap) atmosphere of Xbox Live Arcade. [Update 1: Ross Erickson, the "Worldwide Games Portfolio Manager" for Xbox Live Arcade, let us know that the Lumines micropayment story is "not true." He said the same to sister-site Xbox 360 Fanboy. So, there you go. No more worrying, m'kay?]
Download the entire XBL Marketplace catalogue for only $897.38 -- act now!
Besides building a helpful guide that features all currently available items on the Xbox Live Marketplace, Achieve360Points.com has calculated the total cost* of the service's premium content. The entire catalogue is yours to own for just 71,790 Microsoft Points. That's $897.38.That number is poised to grow exponentially as developers/publishers begin to explore the 'episodic content' formula (read: mini expansion packs). In this time of great paranoia, one can't help but feel suspicious of the micropayment structure. Are publishers purposely shipping incomplete titles? Will I be at a disadvantage if I don't buy the latest content? Why can't I trade it in when I'm through with it?Our rational side would have us believe that these downloads simply offer a little more, for a little more, thus extending the lifespan of our favorite games. And, these downloads should always be about choice, not advantage. Still, we wonder who benefits most from this business model. Are gamers scoring cheap added value? Or is Microsoft pocketing a healthy profit - cut with publishers - to make up for losses? Could it be both?*Achieve360Points.com notes that several of the items are counted more than once due to multiple listings. Also keep in mind that Xbox Live Arcade titles are figured into the total cost.
