gene-hoffman
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Vindicia CEO: MMOs are launching with the wrong business model
Chances are you've never heard of Gene Hoffman, CEO of Vindicia (which may or may not ring a bell, either). MMO companies have heard of him, though, as he's something of a veteran when it comes to online content distribution and payment models. His industry experience dates back to the founding of eMusic, a subscription-based digital music retailer that popped up in 1998. Now he advises companies regarding online business models, distribution, and monetization, and he casts a critical eye on the MMO industry and its slow march toward more flexible payment schemes. "Look, some of these MMOs are launching and they're really bad," he tells GamesIndustry.biz. "You don't want to say that too loudly to them, but seriously, these guys need to do a lot more content before they launch. So why not price it that way?"
Fraud and its effects on the MMO industry
As the number of people embracing MMOs has increased exponentially over the years, so too has the frequency and scale of fraud related to these games and credit card transactions. Chargebacks resulting from fraudulent credit activity are a growing problem for MMO publishers. Gamasutra has run an enlightening Q&A with Gene Hoffman, Chairman and CEO of Vindicia, a billing and fraud management company with no small amount of expertise in the MMO arena. The interview discussed the ramifications of chargebacks for MMO publishers, such as Blizzard, which sheds some light on the fact that having the dominant industry marketshare comes with a few downsides as well. While not commenting about Blizzard specifically, Hoffman says, "We have noticed across all our gaming clients when it comes to fraud is that the 1% chargeback rate is really a marketing budget. Having your chargebacks too low often means you aren't being aggressive enough on the customer acquisition side." Have a look at Gamasutra's talk with Hoffman, a discussion which ranges from in-game theft to hybrid subscription/micro-transaction business models.
