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have the occasional bug or rough edge but it s hard to fault blizzard s execution in comparison to the rest of the market do these things really add up to a compelling game experience not available elsewhere both have their downsides the broad playerbase makes it harder to please everyone while the long development cycles mean lengthy droughts with no new content these are certainly not as big of a revolution as introducing solo play to the genre and perhaps that s a part of the game s slow but inexorable decline back to the big picture if the bottom line is that the game and not the business model defines success how have we arrived at the era of the free to play conversion entry barriers and flexibility are almost certainly part of the story it s hard to be so worthless not to be a bargain at some reduced price for some games like ddo it s possible to have such a low profile that the free to play relaunch is actually many gamers first chance to make a first impression moreover in the early days of the f2p switchover perhaps payment model flexibility was unique enough to be a selling point today however many of the games that appear to have failed to compete at the price level of the monthly fee have all made the switch still charging a fee may or may not be a dealbreaker but it s harder to spin the lack of a fee as a selling point especially if the optional fee is not so optional in that case the real question going forward is when will we see a major f2p relaunch fold perhaps not so soon since many of these titles are owned by larger developers who can keep the lights on relatively indefinitely especially propped up with a cash shop still if i m right this question will begin to loom large in the coming years because there just aren t that many subscription titles left to fail to sustain the subscription model posted by green armadillo at 7 45 pm 6 comments labels baseless speculation business models lotro pvd rift warhammer wow wednesday august 1 2012 the impact of retail on swtor one of the odd quirks of the swtor story is where all the revenue went with over two million copies sold at full price during the first months that s hypothetically well over 120 million in revenue not counting copies sold beyond the first month we have no way of knowing what the churn rate was but even an average of 1 million subscribers paying 90 each over the course of six months between january and july is another 90 million no one knows what it cost to make the game ea previously denied that the rumored 300 million budget was true but development continued and then the advertising campaign kicked in and there were ongoing staffing costs prompting the two rounds of layoffs so who knows what ea s total outlay is still one would imagine that gross revenues that can be no lower than 210 million would have put a dent in it the catch is who gets the 210 million the store doesn t put the box on their shelves and pay an employee to run the checkout line for free the distributor doesn t ship the boxes to the store for free the pressing plant doesn t make the dvd s and stuff em in boxes for free wowhead doesn t run full border ads for games that compete with wow for free for console games not a perfect analogy because the console maker collects roughly 20 off the top figures that are routinely cited give less than 50 of the revenue to the developer and publisher in this case the same corporation the numbers get much more favorable for direct downloads and recurring subscriptions which is a big part of why studios like them especially since they re often serving multiple gigabytes in patches to even the retail customers this in turn is why the high churn rate hurts the game s outlook so dramatically one of the biggest benefits to the developer to having a monthly fee is that they get a much larger cut of that revenue compared to the initial box sales in this context it starts to make sense why ea is throwing around numbers of half a million subscribers it s never been stated for precisely how long but presumably a few years to break even on this game if they re keeping only half of that initial revenue seeing box sales decline in both volume and pricing and continuing to bleed hundreds of thousands of subscribers each quarter it s going to take a long time for them to break even on even 300 million in total development plus marketing costs one wonders if the picture would have been different had they gone online only but i suppose ea s console retail presence wouldn t have allowed them to try such a move posted by green armadillo at 9 08 pm 3 comments labels business models star wars newer posts older posts home subscribe to comments atom subscribe subscribe to pvd about player versus developer i m what they call a wow tourist wow was my first mmo and being able to set my own schedule is a dealbreaker at any given time i can be found ducking in and out of half a dozen different mmo s this blog details some of my own personal exploits but it also focuses on a meta gaming issue that i find very interesting the decisions developers make on how to reward player activity and the decisions players make in response to maximize their own rewards i can be reached at grnarmadillo gmail com my characters greenwiz level 90 gnome mage aldabaran level 55 cyborg vanguard green armadillo 1000 levels marvel heroes violet deepshadow 35 trickster rogue allarond of gondor level 77 champion lyriana fae level 92 dirge 92 jeweler telhamat level 50 high elf cleric green armadillo level 30 sorcery hero of gotham vice admiral green armadillo engineer halanna 57 druid 50 rogue 53 warden valgarde human 6 ranger 4 monk 1 rogue green armadillo 73 ascensions in the kingdom of loathing cheerydeth level 80 beta gnome death knight retired blogroll broken toys the third world war ii the missiles of july 15 hours ago inventory full muskrat love 17 hours ago the ancient gaming noob binge watching the continue watching list apple tv 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more worried about monetizing nuisance than so called pay to win ashamed of victory longtime pvd commenter fedaykin has been telling me that the worst that a pug raid can inflict on me is something to write about and that o what the cataclysm nay sayers underestimated by this time tomorrow the rumors about wow s cataclysm expansion will be settled once and for all on the blizzcon keynote stage this popular posts all time the challenging ddo lotro re onboarding process i reinstalled the two former turbine mmorpg s i used to play 5 years ago in order to apply some generous pandemic promo codes that expi is the swtor credit cap killing unlock resales a few weeks ago i pondered whether swtor s credit cap was going to cause issues for the game s business model it s a bit ear thrall s farewell to nagrand i haven t heard officially whether the questline where thrall visits nagrand will be removed by cataclysm but it seems like an unfortun wow 2010 more like 2008 than 2004 there s been a lively discussion on my pos...
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