An extract from a post published on Free to Play – related to MMOs but nevertheless relevant to virtual worlds and this post about Premium Subscriptions.
Speakers:
* Jesse Mulligan, moderator
* Robert Ferrari, Turbine
* Hilmar Veigar Petursson, CCP (Eve Online)
* Nicolay Nickelsen, Funcom
* Min Kim, Nexon
Is it possible to have one business model for a game for both sides of the Pacific?
* Min: Its possible, but you need to tailor it for each market. You can do microtransactions in each market. But Korea has a PC cafe market which generates a lot of revenue and we dont have that in the West, so thats one big difference.
* Hilmar: Eve Online is centrally hosted, so our busines model needs to be adaptable within the same server. We need to build a vast array of options within game so people can choose what they are comfortable with.
F2P vs Subscriptions: is F2P going to take over? Will subs go away?
* Robert: F2P has a huge influence. But we have been based on subscriptions for years, with some games being around for 10+ years. Subscripitions hit a hardcore audience that is really embedded in those games. But as you expand your audience, they arent as hardcore anymore and F2P becomes more enticing as subs only wouldnt appeal.
* Nicolay: Both models work. Hardcore gamers are comfortable with sub model and most of the games with microtransactions have been casual games. But it is possible to have more than one biz model in a game.
* Min: There is room in the market for both biz models. F2P in North America will make a large push as teenagers cant commit to $15/month, so F2P will work well with them. Nexon saw lots of success when the market went beyond core to mass market.
* Hilmar: Consumers are changing the business model of games – consumers making decisions. You can play Eve online through our trial program as a F2P program – users are able to game our trial system to play it as a F2P game. Its a challenge for companies to adopt the needs of the market rather than keeping their head in sand. People will play the game how they want.
* Min: Were seeing in S Korea a lot of players have a subscription-based game that is their favourite, but have a secondary game that they play f2p with microtransactions.
Which model will win?
* Robert: The demographics in LOTRO etc are a lot older: 20-35, male. F2P games tend to be younger, more females, casual, less hardcore. 30 year old males are not playing a lot of F2P and have no problem paying monthly subscription. Younger people and kids are playing lots of games and want F2P for that flexibility. However, F2P microtransaction games can pull in more ARPU than subscriptions.
* Nicolay: People used to subs have not been in a microtrans environment because those games arent geared to them.
* Min – demographic and psychographics drive the business model choice
* Helmar – In CHina, it is illegal to have an automatic debit for sub based game – user always has to choose. For game operator its important to realize that most biz models will be implemented by user better to implement them yourself and tune appropriately.
* Min – also based on genrenot many ppl shell out $15/month to play FPS. There are some F2P FPSs now in Asia. Biz model based on genre as well.
* Helmar to Min – would you add subs to your games?
* Min – We aim to have a sub without adding a sub – i.e. adding items to mimic a subscription model.