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ArenaNet dev says Guild Wars 2's business model will result in a more diverse playerbase
Guild Wars 2 Lead Producer Chris Whiteside has a pretty straight-forward opinion of MMO business models: He says that subscriptions are "a huge barrier to entry." He says that Guild Wars 2's model, which has no subscription but does charge a one-time fee for the client, each campaign, and optional microtransactions, is far more accessible to gamers. Whiteside also thinks that free models have an added benefit for players: "The interesting and ironic thing about it is when you do more free-to-play games, it becomes more competitive, which is even better for the consumer." ArenaNet expects a more diverse playerbase due to its business model, Whiteside said. He also addressed the difficulty of balancing an MMO for both newcomers to the genre and longtime vets: "As an industry, we could all do a better job of teaching the player how to get to the point where these more complex systems are in the game and then having more enjoyment by understanding what they are, rather than kind of feeling like an outsider."
Shadowrun Online details new business model, shows off gameplay footage
Cliffhanger Productions announced an additional payment model last night, right in the middle of its current Kickstarter project to bring Shadowrun Online to fans everywhere. Today, Executive Producer Jan Wagner released a new developer video detailing that new payment model, referring to it as one "similar to Guild Wars" in which you purchase the game once and can play as long as you'd like. Wagner says that the game will be playable not only as an MMO but as a single-player game, and there will be PvP. In fact, with the mention of upcoming expansions and the way hub cities work, it seems that Shadowrun Online has more than just a business model in common with Guild Wars. You can check out the entire dev video, including some great in-game footage, just after the cut below. [Source: Cliffhanger Productions press release]
The majority of DC Universe Online users play from the PS3
It's been reported that 70% of DCUO users play on the PlayStation 3, so Sony Online Entertainment president John Smedley believes the free-to-play console market is more than merely "viable." In a recent interview with Eurogamer, he states, "There's a lot of people that go through that store and it's so easy to find and download these games that it's a great business model. A lot of people have already stored their credit card information so it's very frictionless if they do want to buy something. It's a business model of the future." Currently, one other SOE title, Free Realms, uses this business model, and CCP is also utilizing it for DUST 514.
The Daily Grind: If all MMOs were completely free, would it change your gaming habits?
With the free-to-play revolution (or plague, depending on your point of view), MMO gamers now have so many more options for inexpensive play than ever before. But that's never good enough for us; we always want more, more, more! So let's take F2P to an extreme and tackle this hypothetical: Suppose every current MMO was completely free -- no box price, no subscription, no microtransactions, nada. Would the freedom from any sort of financial consideration change what games you play and how you play them, or would you pretty much be doing what you're doing now? Personally, I can't see it radically changing my gaming lifestyle. I play what I want to right now, as either subs or microtransactions are affordable enough to keep down to just a few bucks a month at most. But maybe that's just me. What about you? Every morning, the Massively bloggers probe the minds of their readers with deep, thought-provoking questions about that most serious of topics: massively online gaming. We crave your opinions, so grab your caffeinated beverage of choice and chime in on today's Daily Grind!
EA's Peter Moore: Free-to-play is 'inevitable'
The writing is on the wall, and the hens are laying eggs of prophecy: Free-to-play is the inevitable future of all video games. This comes from EA COO Peter Moore, who thinks we'll be seeing the free product plus microtransaction business model trump the up-front cost of a retail box. In an interview with Kotaku, Moore laid it out: "I think there's an inevitability that happens five years from now, 10 years from now, that, let's call it the client, to use the term, [is free.] It is no different than... it's free to me to walk into The Gap in my local shopping mall. They don't charge me to walk in there. I can walk into The Gap, enjoy the music, look at the jeans and what have you, but if I want to buy something I have to pay for it." Moore says that free-to-play works in favor of the industry because it constantly brings in new players -- and new potential buyers. He acknowledged that some gamers might be entrenched in how business has always been done in the past, but it will change no matter what. He pointed to the downfall of Blockbuster and Tower Records as examples of companies that didn't adapt to a rapidly changing landscape, declaring that EA is determined not to stubbornly stick to the past.
BioWare considering free-to-play for Star Wars: The Old Republic [Updated]
BioWare Lead Designer Emmanuel Lusinchi has dropped a word-bomb on the Star Wars: The Old Republic community, stating that the game may be heading in the direction of free-to-play. Lusinchi said that the studio is investigating possibilities: "We are looking at free-to-play, but I can't tell you in much detail. We have to be flexible and adapt to what is going on." This comes out of an interview in GamesTM magazine, in which Lusinchi addressed the challenges of being competitive in a largely F2P industry. While SWTOR has a large playerbase, it lost 400,000 subscriptions from its peak earlier this year as well as several members of its dev team. Lusinchi says that the challenge isn't just that SWTOR is a subscription-based game but that there's a lot of great options in the field. "If it was just free-to-play games and they weren't very good it wouldn't even be a question," he said, "but there are definitely good games out there and good games coming out, so of course all of this competition impacts your plan with what you want to do." Of course, we did hear about the limited free trial at E3, but this interview seems to indicate the possibility of a move to full F2P in SWTOR's future. [Thanks to everyone who sent this in!] [Update: It seems the original article at GamesTM was pulled, but you can find images of the interview here and here.]
China's online gaming industry booming; $6.1 billion expected in 2012
While recent events may have some questioning the state of the MMO industry in North America, a recent study by Asian game market analysis company Niko Partners shows that the industry in the Chinese and Southeast Asian markets is still going strong. In fact, the study reveals that the Chinese online gaming market alone is set to bring in a whopping $6.1 billion US in 2012 alone. So what is the reason behind the Asian market's continued success? According to Niko's reports, a good deal of credit should be given to the free-to-play business model. The F2P model reportedly encourages fledgling gamers to move from more casual social games to "advanced casual" games such as MMORPGs, resulting in a larger pool of money-spending players. Also of note is the fact that the use of internet cafes is declining in major cities. Whereas internet cafe revenue once made up "at least 50%" of gaming revenue, by Niko's current estimate, "up to 2/3 of revenue comes via the home channel." The full article offers interesting insight into one of the largest online gaming markets in the world, so if that sounds like your cup of tea, head on over to Forbes and give it a read.
ArenaNet president defends microtransactions and in-game RMT in Guild Wars 2
MMOs have to make money; that's a fact of life (and of business) ArenaNet President Mike O'Brien knows quite well. In an interview with VentureBeat, O'Brien explained how the studio is handling the monetization for Guild Wars 2 and blasts RMT companies for their practices. O'Brien addressed why Guild Wars 2 is being offered not as a straight free-to-play title but as a retail product with an up-front cost. "The answer is we're really focused on creating the highest-quality MMO, not the lowest-cost MMO," he replied. "I think Guild Wars 2 is one of the best values in gaming, period. Where else can you get this many hours of enjoyment, of content, of polish, of replayability, for $60?" He also took the opportunity to expand upon his own blog post covering microtransactions from a few weeks ago. "Creating a microtransaction system that doesn't upset or alienate your player base is straightforward, once you clearly define what's in-bounds and what's out-of-bounds," O'Brien stated. He says that ArenaNet wants to be "open and honest" with players regarding the in-game store options and promises that these will be "non-essential additions to the game and convenience services" only. O'Brien also had strong words about the shady practices of RMT companies, practices that ArenaNet is trying to combat by offering its own in-game RMT system. "Where there's a real profit incentive, someone out there in the world will lie, cheat, and steal to make that profit, " he said. "By letting players trade directly with each other, we take the power away from RMT companies and give it to the entire playerbase."
Red 5 Studios CEO denounces consoles and publishers
"Who needs publishers any more? I certainly don't. I couldn't care less about them at this stage," said Red 5 Studios CEO Mark Kern. In a candid interview with Eurogamer, Kern ripped into both consoles and publisher-led models as relics on their way out the door. Kern said that the pressure that publishers put on studios are death to the industry, resulting in either "an indie game or... a massive AAA, IP-backed sequel with derivative gameplay." He thinks that there's no middle ground, and it disturbs him how many studios fire staff right after a game launches. Instead, the man behind Firefall believes that the free-to-play model puts the power back in the hands of the developers who then can concentrate on making games without having to kowtow to the publishers and distributors. "Look at Riot Games and League of Legends. They have more users than World of Warcraft does. That's crazy. And they don't have a publisher," Kern said. Citing the expense and sluggish reaction of console development, Kern also predicts that mobile and PC gaming are on their way to take over the field. "Something has to change," he concludes. "Consoles, I believe, are dead."
Ngmoco exec: Free-to-play is not exploitative
Delivering the keynote address at the current Free to Play Summit in London, Ngmoco Sweden General Manager Ben Cousins came out in strong support of the business model. He said that his response to people asking if F2P takes advantage of players is always the same: "Any business model where 95 percent of people who don't pay cannot be exploitative." As most F2P players never spend money in such games and tend to play the most, Cousins thinks that the model works in favor of the gamer. He also stated that freemium games are not set up to trick people into paying, saying that it's "ineffective" if that is the case as a vast majority resists doing so. Cousins addressed the news stories of people who dangerously splurge on in-game purchases as a rarity: "I've never come across a big spender on a free-to-play game who has maxed out their credit cards. The big spenders I've met generally know what they're doing. Even the $5,000 spenders are not being exploited, they are just people who have found their big hobby." Ngmoco publishes freemium titles on the iOS and Android platforms, including games like We Rule and We City.
The Perfect Ten: Free-to-play shopping strategies
"Nothing is ever truly free," my grizzled Uncle Trigger once told me. "So you got to pay for that there air! Pony up, boy!" While Uncle Trigger was overlooking a few aspects of this philosophy, the sentiment is an important one to grasp, especially when it comes to the growing wave of free-to-play MMOs. Even though the first word is "free," it should be followed up with several paragraphs of tiny lawyer disclaimers that basically say, "Nevertheless, the studio is going to look for other ways to tempt you out of your hard-earned cash." F2P is often funded by microtransactions, which offer players some variety in how they customize their game experience at the expense of a subscription's simplicity. It's often not better or worse; it's just different. Because nothing is ever truly free, and because F2P is loaded with more shopping options than a Walmart supercenter, being a savvy customer is more vital than ever. Anyone who's waded into a F2P store probably has experienced buyer's regret due to a hasty or uninformed purchase, not to mention those who end up going broke because of poor impulse control. So today I'm going to get downright practical and offer up 10 strategies that will safeguard and strengthen your F2P shopping trips (also, random plug for Beau's Free For All column in the hopes that he doesn't get mad I'm treading on his territory here!).
Lineage II boasts increased revenue and playerbase following free-to-play transition
It's been a little over two months now since NCsoft's Lineage II adopted a free-to-play business model that the studio has taken to calling "Truly Free." It would appear the transition went over well for the long-running title, as a new press release boasts that since the change, "[the game] has almost quadrupled its revenue and increased its concurrent player base by more than 800 per cent." Not a bad resurgence for a game that's been kicking around for the better part of eight years now. The studio attributes the success -- at least in part -- to the newly added Path to Awakening feature, "which provides helpful buffs, items and advice to accelerate new characters towards the level cap." If you'd like to get in the game and experience the freshly reinvigorated world of Lineage II for yourself, just click on through to the official site. [Source: NCsoft press release]
WAKFU puts out a call for (paying) pioneers
With WAKFU's launch rapidly approaching later this month, the information is pouring forth fast and furious from this free-to-play title. One of the biggest questions that players have at this stage is just how a game is going to make its money, and in the case of WAKFU, Ankama is certainly hoping that the experience is fun enough to warrant a regular subscription. If you're already on board with the WAKFU philosophy and wish to subscribe for a premium membership, then Ankama has a few great pre-launch offers for you. By signing up for three, six, or 12-month plans, you can net yourself plenty of in-game items as well as the esteemed title of "WAKFU Pioneer." Ankama has also published a helpful chart illustrating the differences between the F2P and subscription plans -- such as whether or not you can become an eco-terrorist (we kid you not). Other differences include the ability to own a home vs. set up an in-game shop, how many professions you can master (six vs. 16), and whether or not you can run for office. [Thanks to Derek for the tip!]
Gods & Heroes crucifies subs and slashes box prices
Two business models entered Gods & Heroes' colosseum, but only one walked out alive. The crowds cheered their approval, and for a moment their bloodlust was sated. Subscriptions in the game would be no more. Today, Heatwave Interactive announced that the subscription model wasn't working out for the underperforming Gods & Heroes: Rome Rising (perhaps it did not sell enough fancy helmets) and as of today subs are a thing of the past. Instead, players can enjoy the game without a fee while the team works on creating a true free-to-play plan. In addition to making gameplay completely free, Heatwave has cleaved the price of the client in twain, reducing the cost to $9.99 for those who have yet to get it. If you've previously purchased the game, whether you were currently subbed to it or not, your account is now flagged for unlimited free play.
Raising the quality bar: gamigo CEOs talk F2P success
If you want to get the full scoop on how to make a free-to-play publishing studio work, there are few better people to talk to than the guys running Germany-based gamigo. Co-CEOs Patrick Streppel and Rainer Markussen have had years to experiment and learn from the free-to-play market, as gamigo has been involved with dozens of titles across the globe. Speaking with GamesIndustry.biz, the duo says that the studio splits their attention between self-produced titles and already-made Asian MMOs that are transplanted to a different market, and the two are quite different indeed. "With our self-produced titles we are trying to merge the two branches, so in a game like Cultures Online you have traditional browser-game monetisation like saving time, spending a little bit of money here and there. But they also have the more Asian-style revenue streams like crafting, enchanting, and paying for increasing the probability of success," Streppel said. The CEOs state that F2P actually caters better to hardcore players since those players will presumably be around for a long time and F2P will save them money over subscriptions. They also discuss how gamigo's had to "raise the quality bar" to stay competitive. The free-to-play world isn't about cutting-edge graphics, Streppel says, but instead "balancing, more about features, about gameplay depth." Because of their experiences, the CEOs have said that they've had to abandon complete genres such as sports and racing that proved to be failures for the company. They also predict that F2P will be coming soon to consoles in a big way, just as the iPhone and iPad market has embraced it.
BioWare's docs: Free-to-play can't invest and create at our level
If BioWare's not in a war against the free-to-play business model, it certainly is skirmishing with the notion that F2P is the only way to go. In speaking with our sister site Joystiq, BioWare co-founders Ray Muzyka and Greg Zeschuk defended the traditional subscription model by saying that it not only works but allows dev teams to achieve games on a larger scale. Zeschuk mentioned that it was simply a case of the right business model for the right game: "I'm not saying it's better or worse. It just doesn't supplant the other things. 'Cause we can do some things no one else can. The free-to-play people can't invest to the level we can invest, and can't create something of the size and scale of something we can create." Even with its love of the subscription model for Star Wars: The Old Republic, BioWare is open to free-to-play where it sees fit. Muzyka dropped a tantalizing hint as to the company's F2P aspirations: "We have some other stuff we haven't announced yet coming from our play-for-free team that I'm really excited about. It's gonna bring back some IP that people have a lot of fond memories around."
Star Wars: The Old Republic's hype train barrels onward
December 20th is finally here, and Star Wars: The Old Republic is as live as it's going to get. The title's official launch has sent ripples through the interwebs, and MSNBC, Gamasutra, and Kotaku all have new features highlighting various facets of the new title. Gamasutra has a few words with BioWare co-founder Greg Zeschuk and creative director James Ohlen regarding the game's post-launch strategy. Zeschuk claims that the team is "really busy working on future SWTOR content as well as continuing to improve the service. This will never end." Never is quite a long time, we think, but we'll see how that goes. Meanwhile, MSNBC sits down with SWTOR's Lead Writer, Daniel Erickson, about BioWare's much-touted story pillar. He claims that the game's 20 writers worked together for a total of over 60 man-years of labor on the game's story and writing. And lastly, Kotaku has another few words with Zeschuk. When asked if SWTOR could potentially make a move to F2P like, say, DC Universe Online, Zeschuk replied, "Free-to-play works best when a game is built that way from the ground up... We're not saying never ever, but we certainly have no plans like that in the foreseeable future." For the full features, click on through the links below.
John Smedley gives interesting tweets on DC Universe Online
DC Universe Online is one of the most recent games to make the business model change over to free-to-play, but that alone isn't an assurance of a game's success. The proof, as they say, is in the pudding. And according to the latest Twitter posts by John Smedley on his feed, that pudding is exceptionally rich; Since the business model switch, the game's revenues have been up an astonishing 700% per day, with 53% of the revenue coming from the PlayStation 3 players. The playerbase is growing, as well, with about a 6% increase per day. Apparently, 85% of players are returning players, and it would seem that many of them are happy with what they see judging by the growth in both revenue and total population. Enough to purchase more characters, even -- extra character slots are one of the most popular items in the cash shop, with the Vanguard of the Heavens skin being the other most popular item. It's an interesting set of numbers, showing that the proof is most certainly in the pudding -- and it's quite a lot of pudding.
Glitch dev lashes out against Zynga's business model
Not all social games developers are in love with Zynga's business model. Some are bucking against what Tiny Speck's Stewart Butterfield is calling a "scorched earth policy" that will do far more harm in the long run than what helps the industry now. Butterfield is the co-founder of Tiny Speck, which recently launched the sleeper MMO hit Glitch. While both Glitch and Zynga's games are browser-based and use microtransactions to fund the titles, the similarities end there. Butterfield says that he is adverse to how Zynga creates artificial walls in its games: "The fundamental design of the game became 'Here's a stop sign in your gameplay, you can stop now and come back in a day, or you can keep on playing and it will cost you three bucks, or a buck, or ten bucks, or whatever it is.'" Butterfield called Zynga's approach "unsavoury" and said that it leads to burned-out players and a "lame future" for the genre where gamers are unwilling to return. Ultimately, he predicts that people will forget Zynga's efforts entirely: "They won't be as into it as someone who's playing WoW is in to WoW, or someone who's playing EVE is into EVE, or even someone who's playing Civilization IV is into Civilization IV. It's a much lighter touch." For more Stewart Bufferfield goodness, make sure to check out our interview with him on Massively Speaking!
Earthrise killing subscriptions, going free-to-play in 2012
The struggling sci-fi sandbox Earthrise is no longer interested in competing in the subscription market, and is instead veering toward a free-to-play model in 2012. As of December 1st, all players will be able to experience the game without a monthly charge as Masthead Studios prepares for a F2P version. Masthead CEO Atanas Atanasov says that the move is an effort to retain customer trust while the developers shore up the game's weaknesses: "We decided to let all our players unlimited gaming experience until we all are satisfied with the experience in our game. At the moment Earthrise features one of the best visuals, content, and gameplay of all sci-fi MMOs on the market. However, it is missing polish and has annoyances that spoil the fun in the game. We are learning from our experience and that is why we will remove monthly charges until we bring the game to a quality state that is satisfactory to us and our players." Once the title is brought up to par, Masthead will transition it to a true F2P model, although Atanasov assures players that it will not incorporate pay-to-win purchases. Until Earthrise goes F2P, new accounts will be invitation-only as Masthead restricts the number of incoming players. All current subscribers will be able to invite a few of their friends during the transition, however. [Source: Masthead Studios press release]
