Comments on: Why The MMORPG Subscription-Based Business Model Is Broken http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/ Trusted Insights and Conversations on the Next Wave of Technology Thu, 26 Nov 2009 13:00:29 +0000 http://wordpress.com/ hourly 1 By: The MMO Post-Launch Period: Do’s and Don’ts - GigaOM http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-903408 The MMO Post-Launch Period: Do’s and Don’ts - GigaOM Tue, 07 Oct 2008 18:07:14 +0000 http://gigaom.com/?p=17928#comment-903408 <p>[...] it. At least that’s the case for huge productions like industry leader World of Warcraft, and despite what some people say, it’s a model that still [...]</p> [...] it. At least that’s the case for huge productions like industry leader World of Warcraft, and despite what some people say, it’s a model that still [...]

]]> By: Robert Jones http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-898050 Robert Jones Sat, 06 Sep 2008 01:47:49 +0000 http://gigaom.com/?p=17928#comment-898050 <p>Hi this is Rob from the MMRPG Network. Found your blog and thought it would be a great place to have a review done for our newest game, jailhouselife.com The MMRPG network is pretty big and and can offer you valuable back links in exchange for your review of our game. Please let me know if this is something that would interest you. I am only approaching you because of the high quality of your blog,</p> <p>Nice Work!</p> Hi this is Rob from the MMRPG Network. Found your blog and thought it would be a great place to have a review done for our newest game, jailhouselife.com The MMRPG network is pretty big and and can offer you valuable back links in exchange for your review of our game. Please let me know if this is something that would interest you. I am only approaching you because of the high quality of your blog,

Nice Work!

]]> By: Tesh http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-897794 Tesh Thu, 04 Sep 2008 23:37:38 +0000 http://gigaom.com/?p=17928#comment-897794 <p>Beside the business troubles inherent with monolithic beasties dominating the industry, there's also the chokepoints that the sub model puts on the game design itself. It almost demands a treadmill approach to pad the length of the content so that people don't burn through it. Considering the ROI and investor mentality, the more static the world, the more profitable the game. Fancy treadmills, loot gambling, and class/spec warfare can disguise a lot of core design flaws.</p> <p>To me, that's just as stifling for the genre as the trouble with breaking into the user base.</p> Beside the business troubles inherent with monolithic beasties dominating the industry, there’s also the chokepoints that the sub model puts on the game design itself. It almost demands a treadmill approach to pad the length of the content so that people don’t burn through it. Considering the ROI and investor mentality, the more static the world, the more profitable the game. Fancy treadmills, loot gambling, and class/spec warfare can disguise a lot of core design flaws.

To me, that’s just as stifling for the genre as the trouble with breaking into the user base.

]]> By: The Subscription-based Pricing Model is Broken (by Jeff Freeman) http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-896870 The Subscription-based Pricing Model is Broken (by Jeff Freeman) Mon, 01 Sep 2008 09:36:19 +0000 http://gigaom.com/?p=17928#comment-896870 <p>[...] Scott Jennings spoke words, and they were interpreted by some as a statement meaning “The MMORPG Subscription-Based Business Model Is Broken”. I gave an interview to Wagner James Au over at gigaOM about my new gig which has gotten a lot of press (and flack via the press) in the past couple of weeks. [...]</p> [...] Scott Jennings spoke words, and they were interpreted by some as a statement meaning “The MMORPG Subscription-Based Business Model Is Broken”. I gave an interview to Wagner James Au over at gigaOM about my new gig which has gotten a lot of press (and flack via the press) in the past couple of weeks. [...]

]]> By: Wagner James Au http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-895549 Wagner James Au Mon, 25 Aug 2008 07:14:22 +0000 http://gigaom.com/?p=17928#comment-895549 <p>To me it's like saying, "Hey, <em>Titanic</em> cost $200 million but made $600 million at the box office! So let's spend $200 million to make another love story set on a sinking ship and we'll do great too!"</p> To me it’s like saying, “Hey, Titanic cost $200 million but made $600 million at the box office! So let’s spend $200 million to make another love story set on a sinking ship and we’ll do great too!”

]]> By: Why Subscription-Based MMOs Make Sense « Double Buffered http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-895541 Why Subscription-Based MMOs Make Sense « Double Buffered Mon, 25 Aug 2008 05:12:59 +0000 http://gigaom.com/?p=17928#comment-895541 <p>[...] so, there’s always been discussion about how the charge-per-month scheme for MMOs is “broken” or “on the way out” or “dead“. For some reason, the consensus is [...]</p> [...] so, there’s always been discussion about how the charge-per-month scheme for MMOs is “broken” or “on the way out” or “dead“. For some reason, the consensus is [...]

]]> By: mustafa http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-894660 mustafa Mon, 18 Aug 2008 20:37:43 +0000 http://gigaom.com/?p=17928#comment-894660 <p>@Daniel Golding: I'm not clear on what you're suggesting Daniel. Are you saying that new MMO developers should try to follow WOW's lead since they've obviously been so successful? Might as well put all your investment cash in a big pile and BBQ in my opinion.</p> <p>If you want to try for the $1B business then you better be ready to put $50-75M at risk. Oh, and don't forget that monetizing the resulting product by subscription is a winner-take-all, go-big-or-go-home proposition. Yes, WOW makes $1B. But, how replicable is that as a model for everyone else? Especially now given WOW's dominance at the top of the heap? How likely are you to make back your $50M in that environment? Perpetual...Flagship...care to talk about their profit margins?</p> @Daniel Golding: I’m not clear on what you’re suggesting Daniel. Are you saying that new MMO developers should try to follow WOW’s lead since they’ve obviously been so successful? Might as well put all your investment cash in a big pile and BBQ in my opinion.

If you want to try for the $1B business then you better be ready to put $50-75M at risk. Oh, and don’t forget that monetizing the resulting product by subscription is a winner-take-all, go-big-or-go-home proposition. Yes, WOW makes $1B. But, how replicable is that as a model for everyone else? Especially now given WOW’s dominance at the top of the heap? How likely are you to make back your $50M in that environment? Perpetual…Flagship…care to talk about their profit margins?

]]> By: Daniel Golding http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-894651 Daniel Golding Mon, 18 Aug 2008 19:36:01 +0000 http://gigaom.com/?p=17928#comment-894651 <p>Ridiculous. $50m is a drop in the bucket, when compared to WoW's revenue. It would be cheap at ten times the price. Annual revenues top $1b and its the gift that keeps on giving, expansion after expansion. I'm all for new models, but please...</p> Ridiculous. $50m is a drop in the bucket, when compared to WoW’s revenue. It would be cheap at ten times the price. Annual revenues top $1b and its the gift that keeps on giving, expansion after expansion. I’m all for new models, but please…

]]> By: A.T. http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-894550 A.T. Mon, 18 Aug 2008 07:30:08 +0000 http://gigaom.com/?p=17928#comment-894550 <p>mmm... who is John Galt ? :)</p> mmm… who is John Galt ? :)

]]> By: Why The MMORPG Subscription-Based Business Model Is Broken http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-894504 Why The MMORPG Subscription-Based Business Model Is Broken Mon, 18 Aug 2008 01:53:01 +0000 http://gigaom.com/?p=17928#comment-894504 <p>[...] Random Feed wrote an interesting post today onHere’s a quick excerptFamed game developer and analyst Scott Jennings recently announced on his blog that he’s quit online game publishing giant NCSoft to join John Galt Games. His new home is the small casual game startup developing Web Wars, a sci-fi game played via a browser plug-in, where web sites themselves are territories to fight over. (Sort of RocketOn meets battle cruisers.) The move is a bit like a top Hollywood producer quitting the movie business for an obscure online-video startup; it’s such a big jump [...]</p> [...] Random Feed wrote an interesting post today onHere’s a quick excerptFamed game developer and analyst Scott Jennings recently announced on his blog that he’s quit online game publishing giant NCSoft to join John Galt Games. His new home is the small casual game startup developing Web Wars, a sci-fi game played via a browser plug-in, where web sites themselves are territories to fight over. (Sort of RocketOn meets battle cruisers.) The move is a bit like a top Hollywood producer quitting the movie business for an obscure online-video startup; it’s such a big jump [...]

]]> By: mustafa http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-894500 mustafa Mon, 18 Aug 2008 01:32:52 +0000 http://gigaom.com/?p=17928#comment-894500 <p>bilbo your numbers for Maple Story are old and only reflect US sales. if you look at global sales, Maple Story is way ahead of games like penguin or runescape.</p> bilbo your numbers for Maple Story are old and only reflect US sales. if you look at global sales, Maple Story is way ahead of games like penguin or runescape.

]]> By: The Watch - virtual worlds in the news : The Metaverse Journal - Australia’s Virtual World News Service http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-894477 The Watch - virtual worlds in the news : The Metaverse Journal - Australia’s Virtual World News Service Sun, 17 Aug 2008 21:44:13 +0000 http://gigaom.com/?p=17928#comment-894477 <p>[...] GigaOM (USA) - Why The MMORPG Subscription-Based Business Model Is Broken. “Famed game developer and analyst Scott Jennings recently announced on his blog that he’s [...]</p> [...] GigaOM (USA) – Why The MMORPG Subscription-Based Business Model Is Broken. “Famed game developer and analyst Scott Jennings recently announced on his blog that he’s [...]

]]> By: Ty2 http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-894466 Ty2 Sun, 17 Aug 2008 19:51:49 +0000 http://gigaom.com/?p=17928#comment-894466 <p>All the man is saying is that it requires a lot of investment to create a new MMO game, and since the big ones are established, you aren't going to see a lot of innovation the small markets will produce. Which means these games will chew through teeny boppers time but not produce new, interesting, or innovative games. Because the concepts are new and because the ego structure is developed. It's kinda like how FPS gaming hasn't really evolved a great deal since the original CS; Tribes was a right step in the direction, as is crisis, but a lot of games just plain suck.</p> All the man is saying is that it requires a lot of investment to create a new MMO game, and since the big ones are established, you aren’t going to see a lot of innovation the small markets will produce. Which means these games will chew through teeny boppers time but not produce new, interesting, or innovative games. Because the concepts are new and because the ego structure is developed. It’s kinda like how FPS gaming hasn’t really evolved a great deal since the original CS; Tribes was a right step in the direction, as is crisis, but a lot of games just plain suck.

]]> By: Michael Williams http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-894446 Michael Williams Sun, 17 Aug 2008 15:18:02 +0000 http://gigaom.com/?p=17928#comment-894446 <p>If you look at it from the perspective of breaking into the market, I think he is right. It will be very difficult for a company to compete with Blizzard's Warcraft using the same model. Their game has been out for years now and they have the 1 billion dollars a year of cash flow to polish what they have. It is gonna take some creativity and inventiveness to take them on.</p> If you look at it from the perspective of breaking into the market, I think he is right. It will be very difficult for a company to compete with Blizzard’s Warcraft using the same model. Their game has been out for years now and they have the 1 billion dollars a year of cash flow to polish what they have. It is gonna take some creativity and inventiveness to take them on.

]]> By: jakeblaine http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-894423 jakeblaine Sun, 17 Aug 2008 08:00:46 +0000 http://gigaom.com/?p=17928#comment-894423 <p>Age of Conan wasn't ready to be released as a finished game. Anyone that actually still has an active account can tell a person why the game failed to maintain its subscription momentum. Game crashes, lack of content and near total lack of customer service will doom a new MMO.</p> Age of Conan wasn’t ready to be released as a finished game. Anyone that actually still has an active account can tell a person why the game failed to maintain its subscription momentum. Game crashes, lack of content and near total lack of customer service will doom a new MMO.

]]> By: Shamil http://gigaom.com/2008/08/16/why-the-mmorpg-subscription-based-business-model-is-broken/#comment-894398 Shamil Sun, 17 Aug 2008 03:26:05 +0000 http://gigaom.com/?p=17928#comment-894398 <p>Good article. But, one thing caught my eye. Game developers are afraid of risk. They like sticking to the tried and true stuff that's proven to make money for them and not be a bust like some games. Taking a risk on a game for developers is very risky. Some large innovative things could end up totally being a bust. But, this is where i assume that opensource hops in as well as beta testing on a chosen audience of testers and developers to at least see if an innovative risk should be persued or abandoned. Other than that game devs don't like taking risks for good reason. Fear of risk may be their slow undoing or keep them where their doing great. It'll take a risk to tell which one of those is true.</p> Good article. But, one thing caught my eye. Game developers are afraid of risk. They like sticking to the tried and true stuff that’s proven to make money for them and not be a bust like some games. Taking a risk on a game for developers is very risky. Some large innovative things could end up totally being a bust. But, this is where i assume that opensource hops in as well as beta testing on a chosen audience of testers and developers to at least see if an innovative risk should be persued or abandoned. Other than that game devs don’t like taking risks for good reason. Fear of risk may be their slow undoing or keep them where their doing great. It’ll take a risk to tell which one of those is true.

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