MMO Revenue Decline

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Winnow
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MMO Revenue Decline

Post by Winnow »

It's all about the micro transactions now
With all of the free-to-play MMOs coming onto the market and the F2P conversion of formerly subscription-only titles, it should come as no surprise that the subscription model is losing its grip on the industry. Eurogamer reports that starting in 2010, the money brought in from MMO subscriptions has actually gone into decline for the first time ever since analysts began tracking it in 2002.

2010's subscription revenue added up to $1.58 billion, a respectable amount but still 5% less than 2009. 2009 saw a 10% bump in subscriptions, and 2008 witnessed 21.6% growth. Connect the dots, and subscription revenue has most likely peaked and begun a downhill slide. Analysts predict that by 2015, revenue from subs will be as low as $1.33 billion. However, with the popularity of RIFT this year and the coming storm of Star Wars: The Old Republic, the subscription model may see a resurgence.

On the flip side, microtransactions from F2P models are rising exponentially, jumping 24% from 2009 to 2010 to account for $1.13 billion. With the two models combined, the industry saw a very modest 5% increase last year in revenue.

Screen Digest analyst Piers Harding-Rolls sees the writing on the wall: "The focus of many PC game operators has clearly shifted to micro-transaction‐based models -- in part due to competition in the subscription market especially in the high‐end MMOG segment, but also because of the flexibility micro-transactions offer operators in monetising gamers."
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Re: MMO Revenue Decline

Post by masteen »

Horseshit. For crappy, low-budget Korean-style shitfests, sure. But the big titles are all gonna be subscription with worthless vanity micros as a side market. That's all per the article.
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Re: MMO Revenue Decline

Post by Winnow »

masteen wrote:Horseshit. For crappy, low-budget Korean-style shitfests, sure. But the big titles are all gonna be subscription with worthless vanity micros as a side market. That's all per the article.

Best game on horizon is Guild Wars 2 which is not subscription based.
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Re: MMO Revenue Decline

Post by Boogahz »

which will be just as shitty as Guild Wars 1
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Re: MMO Revenue Decline

Post by Winnow »

Boogahz wrote:which will be just as shitty as Guild Wars 1
Quoted so you can tell me how wrong you were at a later date.
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Re: MMO Revenue Decline

Post by Funkmasterr »

Games being free to play still does and always will immediately remove the possibility of me playing them. I don't play that micro transaction bs.
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Re: MMO Revenue Decline

Post by Winnow »

Guild Wars 2 isn't about micro transactions. You pay for expansions.

Anyone who passes on trying out Guild Wars 2 because you don't have to pay a subscription fee will be missing out big time. The amount of effort put into GW2 will easily be worth the cost of the game. If you think you need to pay a monthly fee for it to be good, that's your problem.

Here a recent trailer.

http://youtu.be/FQai-fbY1E4?hd=1

First part shows mostly the art design. Second half more of the characters and creatures.

Good to see the development team has a sense of humor as well:

http://youtu.be/m1tv9VpnwmY?hd=1

Commando Class skills.
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Re: MMO Revenue Decline

Post by Siji »

As a long time Runes of Magic player I can say that it's very easy to spend WAY more money than you would on a subscription based game. Those micro-transactions can add up, and you don't realize that you did it more than once or twice in a month, and before you know it you've spent much more than the $15 it costs to subscribe to EQ or WoW. I know people in RoM that spend hundreds every month or two.

Saying a game being F2P rules out trying it is silly. Several F2P games are excellent games. As an example, Runes of Magic is an awesome RPG game (I much prefer it over WoW myself, and enjoy it more than having logged onto EQ the last several times). The game and expansions are free and nothing in the game actually requires you to spend cash. Doing so helps to make your trip to "end game" faster, but you can certainly do it w/o that method.

D&D Online is another prime example of how going F2P is a profitable choice.

F2P w/micro transactions are the future of MMO's. Regardless of the amount a subscription is still a monthly bill. If you're short on funds, you don't get to skip a month or two or whatever without losing the ability to play. With F2P you do. I'd love to be able to log onto EQ whenever the mood hit, just to walk around. But I'm not going to renew a subscription just to do so.
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Re: MMO Revenue Decline

Post by Funkmasterr »

That's exactly why FTP isn't my style. I want to get to end game as soon as possible and I don't want to have to get nickel and dimed to do so. I'll pay 15 a month for a mmo I want to play, but if I have to spend more to be competitive with the other hardcore players I'm not going to play the game.
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Re: MMO Revenue Decline

Post by Boogahz »

LotRO seems to have a good combination. There is a subscription option, and the F2P option can basically become the same by accomplishing in-game tasks. You can also spend the cash, but I kept two accounts running for a bit with only one being paid for monthly. You have to do a little mapping on what to unlock first, but it can definitely be done.
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Re: MMO Revenue Decline

Post by Winnow »

As long as you people understand that GW2 is not F2P. you Pay full price for the game and then pay for expansions when they're released. All games, including the extremely gay WoW, have options to pay for pets and shit. Maybe WoW should let you pay 100.00 to get textures higher than 48x48.


GW2 > your game
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Re: MMO Revenue Decline

Post by Funkmasterr »

There's a big difference between the option to pay for a pet that has absolutely zero bearing on gameplay, and micro transactions that hinder your ability to progress through the game as fast as people that pay for them.
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Re: MMO Revenue Decline

Post by Winnow »

Funkmasterr wrote:There's a big difference between the option to pay for a pet that has absolutely zero bearing on gameplay, and micro transactions that hinder your ability to progress through the game as fast as people that pay for them.

GW2 is not a subscription game. It's not a F2P game either unless someone buys the game for you. I hope you understand the difference. Not sure what the fuck you're arguing about unless it's the cheap ass f2p games from Asia which GW2 is not. GW2 is a triple A game. That's three A's. A A A.
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Re: MMO Revenue Decline

Post by Funkmasterr »

I wasn't just commenting on your obsession of the week, I was commenting on FTP in general, per the thread title. Get over yourself.
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Re: MMO Revenue Decline

Post by kyoukan »

most free to play games have some kind of gold membership where you pay a monthly sub and get access to basically everything. it's not a very valid argument saying you don't like free to play because you like to pay a subscription.

a better argument would be that 99% of all free to play games are shit.
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Re: MMO Revenue Decline

Post by Funkmasterr »

kyoukan wrote:most free to play games have some kind of gold membership where you pay a monthly sub and get access to basically everything. it's not a very valid argument saying you don't like free to play because you like to pay a subscription.

a better argument would be that 99% of all free to play games are shit.
I was unaware that option is typically available. The handful I have played have pretty much all been shit, good point.
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Re: MMO Revenue Decline

Post by Boogahz »

That would be why I pointed out that LotRO has the best balance between the subscription and "f2p" models.
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Re: MMO Revenue Decline

Post by Winnow »

While I'll agree in general that most f2p games are crap, I'll also say that a few of them are fun for a little while. I'm talking like a week or so. Global Agenda was a blast for awhile until the content ran out. I'm not even sure what I could have paid for in that game. At the same time, the Global Agenda installed that hidden pando torrent crap Miir pointed out so you have to be wary of that kind of shit going on.

MMOs are moving toward micro-transactions offering the "gold pass" option. Even worshiped Blizzard's next major MMO is rumored to be F2P.
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Re: MMO Revenue Decline

Post by Chidoro »

Winnow wrote:GW2 > your game
It is? I assume you're in beta playing right now? How does it play?
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Re: MMO Revenue Decline

Post by Winnow »

Chidoro wrote:
Winnow wrote:GW2 > your game
It is? I assume you're in beta playing right now? How does it play?
Smooth as butter!
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Re: MMO Revenue Decline

Post by Winnow »

MMORPG (mostly men online role playing girls)
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