Perfect World purchases Cryptic Studios from Atari

May 31st, 2011

Chinese game developer and games operator Perfect World has recently announced the successful acquisition of Los Gatos, California based Cryptic Studios directly from it’s sole owner, Atari, S.A.. As per terms of the agreement, Perfect World will acquire 100% equity interest in Cryptic, to the tune of approximately $50 Million (35 M EU), paid in cash. Naturally, there are a number of contingencies attached to the deal, including working capital and “other” adjustments as provided in the final sale agreement.

“We are very pleased to sign the agreement to acquire Cryptic Studios,” commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World in a statement. “This strategic acquisition will add attractive game titles to our portfolio, which will help us further penetrate into the U.S. and global online game markets. More importantly, Cryptic Studios’ highly reputable development team and its technology platform will further strengthen our well-established R&D capabilities. We deem this as another noteworthy achievement of our global expansion efforts.”

Agreed. This is a major buy in for Perfect World. Not only do they gain a solid foothold in the North American market, but they do so by purchasing a studio right in the heart of Games Development Central, as well as pick up a number of high profile titles including City of Heroes, City of Villains, Champions Online, and Star Trek Online, to name a few. The company is currently developing Neverwinter Nights, as well as several unannounced projects. Presumably, these “in the works” projects will remain on course, but now have a Perfect World influence as to where and how the game development should progress. The Perfect World/Atari announcement included no information about current and future staffing levels.

“With the acquisition by Perfect World, Cryptic has found a strong platform for continued expansion into free to play business model and growth in the global marketplace,” said Jim Wilson, CEO of Atari in a statement. “The divestiture of Cryptic is in line with Atari’s continued focus on key owned and third-party strategic franchises and expansion into emerging game platforms.”

Atari and Cryptic take Champions Online Free-to-Play

October 27th, 2010

Thanks to long time industry player Atari, and Cryptic Studios, we can now add another pin on the “switching to free-to-play” pin board. Announced yesterday from Los Angeles, Atari Inc. and MMO developer Cryptic Studios are bringing their superhero MMORPG Champions Online over to the free-to-play side.

Slated to officially open in Q1 2011, players will be able to engage in Champions Online in all it’s free-to-play glory. However, fans of epic heroism won’t have to wait until next year to dig in, as a closed beta is set to commence on November 9, 2010.

Billed as an MMO that brings challenges to the table that even the most experienced online gamer will delight in, Champions Online is a fast-pace action title that allows players to take on their own superhero persona. Based on a classic, but never aging, theme of good vs. bad, players can join with Defender and other Champions to slay the evil forces of Dr. Destroyer.

The Champions Online free-to-play version will feature a wide array of premium features that are aimed at entertaining players, as well as cashing in on virtual goods purchases. Adventure packs, items, powers and costumes are all on tap via Cryptic’s C-Store. Borrowing a page from Turbine’s flip-it-to-free-to-play-and-employ-a-hybrid-model, Atari and Cryptic will offer a Gold member subscription service. Current Gold members may continue subscribing (or not), and new comers may play and pay-as-they-go, or buy in to the optional $14.99 per month fee. Obtaining the Gold member status allows players to unlock most of the games’ content, and includes extra features unavailable to free-to-play players.

“Transitioning Champions Online to the free-to-play model is a great opportunity to reach a whole new audience of PC gamers that view subscription fees as a barrier to entry,” said John Needham, CEO of Cryptic Studios. “By taking care of our current subscription-based community and welcoming the addition of new players through free-to-play, Champions Online is poised to build upon its success and to establish a new leadership position as the first free-to-play superhero MMO.”

Star Trek Online to boldly go Free to Play?

July 13th, 2010

If we think back 2 years ago, the free-to-play concept and business model were still baffling to most North Americans, and a heard-of-it-but-never-played-one concept to a lot of Europeans. I say this, as we all know the business model had it’s birth, and arguably the most amount of success in Asia. As the concept met resistance, there were obviously more than a few gamers willing to give it a go, and thus was born the acceptance.

star-trekonlineWe all knew that it was going to take a big leap of faith from a major studio to put the seal of approval on the whole shebang. And while it might not have been EA to come out and introduce free-to-play to North America, but a number of smaller firms took note, adopted the model, and started to watch a decent ROI roll in. Fast forward 18 months or so later, and suddenly, we’ve found our free-to-play flagship in Turbine. When Turbine decided to cut the flailing Dungeons and Dragons Online free from the subscription model, they had two choices, shut it all down, or…reinvent the game in a free-to-play/premium subscription hybrid model. We all know how that story went. Dungeons and Dragons Online has seen a massive resurgence, and lining the Turbine coffers nicely. So well, that the company decided to mimic the same model with their flagship property: Lord of the Rings Online (which goes f2p this coming fall).

As the expression goes, it only takes a crack in the dam to open the floodgates, and in this case, Turbine might very well be that crack. As noticed by the good folks at Massively, it looks like Cryptic Games might be ready to follow suit with Star Trek Online. The suggestion was thrown into the ring by Star Trek Online’s Executive Producer Daniel Stahl in an Ask Cryptic forum thread:

I could easily see STO going into a hybrid model similar to what Lotro is doing. In that model, subscriptions stay as is – but you allow people to play for free but heavily limit what they can do – which in essence creates a robust way to demo the game and then if you want to keep playing, you either pay for every little thing you are interested in, or you subscribe and don’t have to worry about it.

Turbine seems to have some interesting plans and looking at how DDO has turned around, its worth taking note.

And again, Stahl is not committing to anything here, but it’s quite obvious that if Cryptic is closely watching what trailblazer Turbine is doing, so is just about every other major (and not so major) gaming studio. While I’m not quite ready to say that subscription only is dead (I’m looking at you Blizzard), it’s clear that the business model has seen better days, and is now looking a bit like the aging hipster at the cool kids party.