Posts Tagged ‘business model’

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Acclaim ditches freemium model – Chronicles of Spellborn goes free-to-play in 2010

Wednesday, July 1st, 2009

Acclaim dropped the bomb on current Chronicles of Spellborn players yesterday in their forums by announcing that the title is now (more or less) in a state of limbo until sometime in 2010, when the game will ditch the freemium model, and switch to a pure free-to-play, microtransaction supported business model.

Acclaim Games announces the re-development of their recent MMORPG The Chronicles of Spellborn which was released in February, 2009. The development is planned to carry into 2010 and will include several enhancements and changes to the current game. The enhancements and development of the new model will be carried through a joint venture between Spellborn NV and the development studio of Frogster Asia Co. Ltd. based in Seoul, the Korean studio bringing its expertise in the field of free-to-play and micro-transactions.

After the re-development, the current subscription model will be switched to a free-to-play system supported by micro-transactions. This will open the world of Spellborn to all players and give them a chance to experience the rich lore and game-play in its entirety.

Players who are currently playing the game will be able to continue playing the game in its current form via the subscription service. At the point where the new version is released, any unused subscriptions will be credited to their accounts. Any players who wish to register for a free account can sign up now at http://spellborn.acclaim.com.

spellbornThis announcement arrives just five months after the long awaited public release.  Developed by Dutch based Spellborn International, with the US release handled by Acclaim, the game allowed the opening levels, originally up to 7, then bumped to 9, to be played for free, but then required subscription dues thereafter.  This model will remain in place until the 2010 change, but interesting to note that during this transition phase, no changes will be made to game content.  In other words, not only will there be no new content updates, but any existing bugs, planned fixes, etc. are off the table for now.  The Chronicles of Spellborn is now officially in a state of limbo.

Also important to note: this decision was made by Spellborn International, and not Acclaim.  Even given these circumstances, personally, I can’t think of a better way to destroy your community, as is clearly evidenced by the 4 plus and growing comments pages in reaction to the announcement on the acclaim official forums.  I.e., why would I continue to make subscription payments until the free-to-play switch is flipped?  Yes, any unused subscription amounts will be credited, but really…what’s the point now?

While this is a nice addition to the free-to-play roster, The Chronicles of Spellborn now arrives to the party in tarnished armor, and will most probably now only occupy the corner by the drinks table, licking it’s wounds.  Sad really, as this title had plenty of potential, and what looks like a pretty dedicated fanbase.

Can Spellborn International and Frogster Asia re-invent The Chronicles of Spellborn and make the proverbial phoenix rise from the ashes?  Perhaps, but the question that begs to be asked is; at what cost?

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Gameforge CEO Klaas Kersting to deliver “Free-to-play vs. Payment Models” keynote at GDC Europe

Tuesday, June 30th, 2009

Founded in 2003 by Klaas Kersting and Alexander Rösner, German based Gameforge quickly became the de-facto destination for European free-to-play gamers.  With award winning games, both client and browser based, including OGame, Ikariam, and Metin2, Gameforge has attracted over 75 million gamers from around the globe.

Klaas KerstingMr. Kersting is expected to share his knowledge and experience with GDC Europe attendees, and will deliver a track keynote titled, “Changes in the Games Industry – Free-to-play vs. Payment Models.”  Kersting will share his thoughts and advice on the success of the free-to-play business model.  He’ll also cover the differences between gaming attitudes and cultural backgrounds when it comes to various payment models.

“Gameforge develops pioneering and groundbreaking technologies in the browser-based game sector, which is driving the whole industry,” said Frank Sliwka, Vice President European Business Development of Think Services Game Group. “GDC Europe is focused on delivering content that appeals to a global audience, while presenting content that represents and showcases the European development community. Gameforge is one of those companies that exemplifies the European spirit of innovation, and as a market leader, we anticipate a keynote that is powerful, informative and inspiring.”

Kersting’s keynote speech should dovetail nicely into Double Fusion’s Direct of Developer Relation’s Brian Blau is expected to talk about in-game advertising.  Blau’s talk will review the design and implementation aspects of dynamic in-game advertising placements.  He’ll also be presenting examples of the Good, the Bad, and the Ugly in respect to which ads have worked, not worked so well, and outright failed.

Both Kersting’s keynote and Blau’s session will deal with the rapidly changing state of the gaming industry.  One discussing the microtransaction position, the other the in-game advertising stance.  As we’ve seen over the past year, a number of free-to-play titles are being introduced to the market in hybrid form.  Meaning, these titles are choosing wisely, and not relying on simply one form of monetization, but diversifying and offering players subscriptions for premium content, microtransaction options, and perhaps a pre or post game advertising roll.  Both of these sessions should be of high value and interest to any gaming developers looking into the future, and realizing that the state of play is no longer what it once was.

Taking place between the 17th and 19th of August at the Cologne Congress East Center in Cologne, Germany, the GDC Europe expects over 1,500 attendees from 48 countries around the globe.  The GDC Europe is regarded as the preeminent European games developer conference.

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Blizzard takes one step closer to casual gaming?

Tuesday, May 12th, 2009

One of the most respected and well know names in casual gaming, Greg Canessa is calling it a day as Vice President of Video Game Platforms with PopCap.  Prior to his current position, Canessa was the man in charge who launched a thousand ships with the business model he rolled out for Microsoft’s XBLA service.  He left this position and joined PopCap in February of 2007, and is now moving on again – this time to the 800-pound gorilla in the room, aka Blizzard.

wow_bejeweledAt this point, I think we’re pretty justified in letting the wild speculation run free.  Granted, Blizzard has been showing more and more interest in casual gaming over the past few months, with not only PopCap’s Bejeweled showing up on gamers’ radar’s back in September, but just a few weeks ago, Blizzard also tossed PopCap’s Peggle into the World of Warcraft mini-games selection.  Three guesses, the first two don’t count on who was spearheading this project?

So what’s really the dilly Blizz?  While Kotaku broke the news, Joystiq raises some very interesting points, and questions whether or not Canessa has nabbed one of the open positions Blizzard is currently advertising in the “Unannounced” section, or perhaps the elusive “Next-Gen MMO” category?  According to Joystiq’s inside source, Canessa will be working on an “unannounced project in the online space”.

wow_peggleAnother point to keep in mind here is that Blizzard’s COO Paul Sams has repeatedly made statements about the company’s interest in starting up an entirely new franchise.  Could Canessa’s appointment be the first signal in Blizzard’s interest in starting up a casual gaming platform?  Maybe browser based gaming?  Maybe social networking based play?  iPhone/mobile gaming?  Again, the speculation doors have been flung wide open by Blizzard’s highest profile move in this direction to date.

If Blizzard has in fact brought in Canessa for the purpose of fleshing out a casual games division, does this mean that they’re also interested in having a look at microtransactions?  While the producer of the #1 game worldwide certainly doesn’t need any more money, they might be foolish to not at least visit and review the concept.  With relative newcomer (in relation to Blizzard) casual game publisher Zynga reportedly pulling down nine figure revenues from microtransactions, just have a think for a moment what Blizzard and their mighty army of employees could tackle?

I’m quite certain Canessa’s departure is a blow for PopCap, but that’s not to say they don’t have a thriving business going as it is, and I’ll be interested to see where they take things from here.  On the flipside, PopCap now has a former high-level executive inside the mighty Blizzard citadel.  More PopCap casual titles to be implemented within WoW?  Plants vs. Orcs?  Zombies vs. Night Elves?  Let’s hold fire and wait and see.

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Freemium model tops Social Networks monetization list

Monday, February 23rd, 2009

During Social Media Week held in New York City, Abrams Research polled over 200+ social media founders, bloggers, journalists, entrepreneurs and high profile Twitterati members from across the US and Canada asking a simple question, ‘How should social networks be monetized?’  Other topics surveyed ranged from which social networks were the most important to them, to where they see facebook, twitter, linkedin, and other social networks headed, and more.

According to the survey, just under one third (thirty-two percent) said that they would most likely pay to used facebook, with linkedin taking a very close second with thirty percent, and twitter rounding out the top three with twenty two percent.

As far as monetizing social networks, the survey revealed that a “freemium” business model was most acceptable to the audience.  A freemium business model is a monetization model that allows users to use a ‘basic’ version of a service for free, and then seeks to add revenue via purchased upgrades.  A prime example would be Playfish’s ‘Who Has the Biggest Brain’ application that allows users to access core functionality for free, but offers a ‘Go-Pro!’ option; a one time fee paid by users to access premium content including more games, time trials, etc.  An overwhelming forty-six percent of respondents said that freemium was the way to go.  Other than twenty percent of those surveyed responding with ‘contextual/targeted ads’, other interesting monetization models paled in comparison.  Nine percent stated that social networks should monetize by charging for research, only 6.9 percent liked a subscription model, and traditional banner ads scored the lowest with only three percent liking the idea.

What exactly are social networking users looking for from the experience?

Twenty-four percent of respondents stated that the most critical feature to them is the status update, closely followed by twenty-one percent ranking the newsfeeds as must-haves.  Rounding out the top four are comments coming in at seventeen percent, and personal messaging taking home fifteen percent of the pie.  Not quite as impressive, yet still noteworthy are those ranking in at less than ten percent: uploading and sharing photos and videos, mass-messaging, and tagging and untagging.

And while facebook tops the list of social networks that users would be willing to pay for, twitter takes the top spot as ‘must haves’ for businesses.  Forty-five percent of those surveyed advised businesses to have a twitter account (and presumably interact with clients/customers).  LinkedIn nabbed second place with twenty-one percent, YouTube with nineteen percent, and oddly enough facebook took the number four spot with fifteen percent.

All’s good, so where’s the problem?

Of the top movers and shakers surveyed, twenty-nine percent said that the biggest problems facing social networks is the “inevitable slide into uncoolness” (myspace, what?).  15.3 percent stated that lack of advertiser interest would be their demise, and 13.4 percent found the ‘inevitable spam problem’ to be the final nail in the coffin.

Download and read the full survey available from Arbrams Research (pdf download).

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SOE Prez John Smedley on microtransactions

Tuesday, February 3rd, 2009

We’ve both talked and read a lot about John Smedley over the years, and the Sony Online Entertainment President is rapidly becoming an outspoken voice in the microtransaction field.  Our friends over at Virtual Goods News recently had an outstanding Q&A with John, revealing some insight and thoughts, along with where Sony is headed with microtransactions.

John is credited as being one of the many people responsible for the current state of the MMORPG genre, thanks to his work on the original EverQuest.  In 2007 as President of SOE, he announced that the company would begin looking at and pursuing an interest in this up and coming business model known as microtransactions.

“We’ve been intrigued watching the Asian free-to-play model for awhile and got interested in that. The sales data we get out of the Denver studio is just shocking. People have money to spend and they want to spend it on something cool.”

John’ quick to point out the differences between the free-to-play, microtransaction supported business model, and microtransactions as an additional revenue stream.

“I think a lot of people are wondering if StationCash signals that we’ll make EverQuest and EverQuest II free-to-play, and that’s not correct,” says Smedley. “The reason for the StationCash store is very simple. It’s an additional revenue stream that gives customers something they want. The evidence of that is the sales numbers we’re seeing.”

Beating the critics to the punch, Smedley also comments on one of the most common complaints heard from gamers: microtransactions create an unfair game balance between those that have disposable income and little time, vs. those that have a great deal of time vs. little cash.

“So, we did some surveys of our players at FanFare 2008 – we got criticized for this – but we wanted to talk to our hardest-core fans and hardest critics. We got feedback that was very strongly “Yeah, as long as you don’t sell power, I’d give it a try.” We thought that the time was right.”

Speaking to SOE’s flagship microtransactions title ‘FreeRealms’, Smedley comments,

“FreeRealms has a StationCash store built right into it. The items include potions, outfits, pets. It’s designed with microtransactions from the ground up.”

And again addressing the ‘pay to pwn’ theory, it looks like there’s an option to buy ‘power’, but Smedley doesn’t see it this way,

“I wouldn’t call it power. We’re selling convenience. There will be some items there that you can buy. It’s primarily a microtransaction game, but it’s selling health potions and things like that.”

Over the past few months there’ve been rumblings about the anticipated upcoming spy based title ‘The Agency’ featuring microtransactions.  John sets the record straight with a simple “We’re not sure yet”,

“We haven’t made any announcements yet, but that’s because we haven’t made up our minds yet. It’s skill-based, so we can’t sell anything that confers player advantage. What that specifically means, I don’t know yet. We’re still experimenting.”

Looking forward, John is asked where he sees SOE in five years’ time.  Not surprisingly, he doesn’t see microtransactions becoming a core business model for SOE, but rather an additional revenue stream,

“I think we’re going to continue to expand virtual goods as part of our business, but it won’t be the core of our business. You’ll see it in new titles to different extents where appropriate.”

When asked his opinion on where the MMO scene in general will be in the next five years and where virtual goods factor into it, he comments,

“I think it is slowly but surely making its way in. It’s coming into everyday normal, MMOs. It’s just an ancillary revenue stream, a convenience for players, and I think people will gradually get used to it provided companies are careful with how they integrate it. I think over time it’s going to become a mainstream thing.”

To read the entire interview, be sure to visit Virtual Goods News.

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Free-to-play Maple Story ranks among top moneymaking MMO’s of 2008.

Monday, February 2nd, 2009

DFC Intelligence is gearing up to publish a comprehensive study of MMO worlds next month, according to GigaOm.  Wagner James Au got a special preview of the report and shares some initial estimates.

DFC’s David Cole says that the 2008 numbers are on the “very conservative” side, indicating that the 2008 numbers are still being crunched, and more exact numbers will be reflected in the February 16th reports.  “We indicate ranges because these numbers are estimates for 2008 based on where we think these products will end up,” said Cole.  And while the numbers are still being tallied, Cole estimates that the rankings should stay more or less the same, with “maybe a slot here or there” changing.

And while it shouldn’t come as a shock that the Blizzard powerhouse World of Warcraft takes the number one spot, Cole believes that if viewed from a pure profit margin, WoW wouldn’t be taking home the gold.  Asian MMO’s, which are traditionally developed at far lower budgets, have a much higher profit margin.  “Profit margin on Asian games is incredibly high,” says Cole, noting that Asian MMOs charge on or around 5-6 cents per hour with prepaid usage cards, a business model that has yet to proliferate the western gaming market.

What’s interesting to note in this projected report is the high ranking of Nexon’s free-to-play Maple Story (supported by microtransactions, prepaid cards, and international licensing), and the catalogue of Shanda’s games (Virtual item sales, prepaid cards, and freemium subscriptions).

1. World of Warcraft, launched 2004
Genre/Platform: Western MMORPG; client install with 3D graphics
Revenue sources: Monthly subscription, retails sales, prepaid cards (in Asia)
DFC estimated 2008 revenue: $500 million-plus

2. Fantasy Westward Journey, launched 2004
Genre/Platform: Asian MMORPG, client install with 2.5D graphics
Revenue sources: Prepaid cards
DFC estimated 2008 revenue: $150-$500 million

3. Maple Story, launched 2003
Genre/Platform: Asian MMORPG for kids, client install with 2D graphics
Revenue sources: Microtransactions, prepaid cards, international licensing
DFC estimated 2008 revenue: $150-$500 million

4. Shanda (company, includes Legend of Mir and World of Legend series), launched 2003
Genre/Platform: Asian MMORPG, client install with 2.5 graphics
Revenue sources: Prepaid cards, virtual item sales, freemium subscriptions
DFC estimated 2008 revenue: $150-$500 million

5. Lineage I and Lineage II , launched 1998 and 2003
Genre/Platform: Asian MMORPG, client install with 2.5 graphics (Lineage) and 3D graphics (Lineage II)
Revenue sources: Subscription, prepaid cards
DFC estimated 2008 revenue: $150-$500 million

6. Runescape
Genre/Platform: Western MMORPG for kids, web-based with 2.5D graphics
Revenue sources: Premium subscription, prepaid cards, real-world advertising
DFC estimated 2008 revenue: $50-$150 million

7. Club Penguin, launched 2006
Genre/Platform: Virtual world for kids, web-based 2.5D graphics
Revenue sources: Premium subscriptions, prepaid game cards
DFC estimated 2008 revenue: $50-$150 million

8. Lord of the Ring Online
Genre/Platform: Western MMORPG, client install with 3D graphics
Revenue sources: Subscription, retail sales
DFC estimated 2008 revenue: $50-$150 million

9. Warhammer Online
Genre/Platform: Western MMORPG, client install with 3D graphics
Revenue sources: Subscription, retail sales
DFC estimated 2008 revenue: $50-$150 million

10. Age of Conan
Genre/Platform: Western MMORPG, client install with 3D graphics
Revenue sources: Subscription, retail sales
DFC estimated 2008 revenue: $50-$150 million

Wagner continues his conversation with Cole around the most popular, in terms of active players, MMO of 2008.  To answer this question, we’ve got to go even a bit further out on the speculation branch, but Cole points out that Fantasy Westward Journey registered 2-3 million concurrent players back in August.  And although Warcraft likes to beat it’s own drum regarding their estimated 11 million+ players, “You’re lucky to get 5-10 percent [of them] playing at the same time,” says Cole.  Minho Kim, developer of Maple Story said in December that the title has 87+ million registrations, but wouldn’t comment on how many of these registered users were/are active monthly users.  Joost van Dreunen from DFC’ estimates the number to be more in the 13 – 17.4 million regular Maple Story players, roughly 15-20 percent of Kim’s estimation.

Cole admits that this year’s list looks remarkably similar to the 2007 list with Conan and Warhammer being released in 2008.  And while only 2 of the top 10 contain some type of microtransaction support, I’d estimate that this list might look very different one year from now with a number of highly anticipated (think Free Realms and Battlefield Heroes) free-to-plays coming online in ’09.

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Super Boom Boom 2 to feature microtransactions

Sunday, October 12th, 2008

The LA based publisher GAMEVIL has recently announced plans to launch Super Boom Boom 2: Space Adventure with a microtransaction business model.

Not newcomers to the mobile gaming market, GAMEVIL’s ‘Baseball Superstars 2008’ is one of the top mobile titles in the Korean market.  ‘Baseball Superstars 2008’ has clocked in 1.3 million downloads within the first 10 months of its release.

The game download is expected to cost $3 USD.  The average G-Points purchase is estimated at $1.50 USD, a 50% addition revenue stream, adding an extra 2M USD to the 4M USD generated from the downloads alone.  Overall, GAMEVIL reports that microtransactions have boosted individual games’ revenues by 30-40 percent, while one title in particular has seen increase of over 300 percent.

Super Boom Boom 2 itself may not be breaking any new ground by way of it’s five levels, unlockable extras and online high score tables, it’s microtransaction system is noteworthy.  Players will be able to purchase ‘G-Points’ at GAMEVIL and use this in-game currency to purchase new levels, items and mini-games.

With a market penetration reaching over 90 handsets, Super Boom Boom 2 will be the first American game with a microtransaction platform in place that will reach over 90 percent of all available handsets including the gaming elusive Blackberry and Windows Mobile platform.

Super Boom Boom 2 is expected to reach said mobile devices later this month.

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Adding free-to-play to the DSi would change the entire industry

Tuesday, October 7th, 2008

Head Honcho of Acclaim and noted advocated of the Free-to-Play business model, David Perry says that by adding free-to-play games to the recently released Nintendo DSi would be an industry changer.

In a recent interview with Matt Martin of gamesindustry.biz, Perry said that his reaction to the new DSi from Nintendo is positive, but he had certainly hoped for faster innovation coming out of Kyoto.

While Nintendo has no public plans to delve into the free-to-play world, Perry did comment that the ability to download games directly to the DSi was a good start – provided that 3rd party manufacturers don’t beat Nintendo to the punch.

“The download store is good, [Free-to-play games] would have changed everything for designers. Basically it would remove the limitations of what a handheld is capable of doing, but it would require WiFi to play those games, so maybe it’s still too early,” he offered. “I think [free-to-play] would have been a game changer, but now it’s over to Sony or Microsoft to make this move.”

“The download store will help people play and try more games, it’s a great way to allow impulse playing,” he continued. “So I think that actually will help, I’m pleased Nintendo are stepping up their game as the online store they initially launched on the Wii was terrible.”

Noting the most sizable party in the download games on the go industry; Apple, Perry says that Demo versions of games made available for the DSi would provide a distinct advantage, not only to gamers, but developers and publishers as well.

“It’s certainly where they can beat Apple if they get developers to offer demos of all games. Apple fails on the demo front where you buy first, hoping you will like them. To compete with Apple, they will need to open up free-to-play gaming.”

Also up on Perry’s DSi wishlist? Both screens having touch screen sensitivity (something that all of us have been scratching out heads about ever since the release of the DS back in …), a webcam for greater interactivity (the built in camera is nice, but still not a webcam.  Perry also believes that this camera is destined to produce a number of ‘gimmicky’ games), tilt sensing (ala iPhone), a slicker design (again…iPhone), better speakers (is anyone using their DS without headphones?), and an “Xbox Live” style service for handhelds.

Thankfully, Martin asked the question that was on my mind as well while reading about the DSi, how about a “touch sensitive Wii controller”, which Perry also added to the wishlist.  Not every player is going to have both a DSi and a Wii, but the added gaming functionality might be yet another ‘hey, that’s cool’ factor to the Wii, and perhaps boost sales based on system compatibility via the controllers.

Not quite complete with the wishlist, Perry continued with a Nintendo Cloud Server

“to host server heavy games, that make the gameplay more impressive than handheld hardware could ever produce.”

I personally have yet to get my hands on a DSi, but while tons of reviews are starting to show up across the gamescape, there tends to be some mixed feelings.  Some say it’s the greatest thing since sliced bread, while others clock in with a resounding, “yeah, and….?”

Either way you look at it, a free-to-play concept on handheld gaming systems could very well be an industry changer.  Clearly iPhone users don’t have a problem making microtransaction games purchases (myself included), so why not give developers and gamers both a fair shake at ‘free-to-play, microtransactions if you want to play more, extra levels, etc.’?  For years, games publishers have been introducing the free-to-play model on a PC platform.  Perhaps coming at the topic from the bottom up, and not the other way around might be a great way to get an entirely new generation of gamers interested in, and used to the free-to-play, microtransaction based concept.

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Analyzing to find the Sweet Spot in the free-to-play market

Saturday, September 6th, 2008

Osma over at fishpool.com has recently written an outstanding article on finding the ‘sweet spot’ in the free-to-play, pay-for-stuff market.  Writing with expertise gained for his 5 years of experience with Habbo, Osma brings to light some interesting details regarding exactly what players will pay for in the free to play market.

I don’t want to steal any of his thunder, but would rather post some selected highlights.  To read the entire story go and visit fishpool.com.

And now for those juicy highlights:

Providing a basis for the article and why he’s chosen to publish this knowledge:

I’m sharing this with the world because while it’s been an interesting ride to build an online social game with an end-user business model, breaking pretty much every conventional rule in the process (“games have to have objectives”, “there is no profit in micropayments“, and so on), it’s still better for our business if people understand why it works. If this allows a competitor to fix a problem in their product and get off the ground, so be it – there’s plenty of growth to go around here, and failures don’t help anyone.

Looking at two assumptions behind the flexible pricing model:

…the number of customers grows as the cost of goods drops, and second, that the maximum consumption is unrelated to the minimum. There is no average customer who would spend more than half of others, and less than half of the rest.

Applying these principles to the free-to-play, microtransaction marketplace:

Cheap purchase price attracts more customers out of the existing free users, and transactional item-based sales allows repeat purchases of theoretically unlimited amount. Those who are willing to buy more will do so, up to some practical maximum of consumable goods and discretionary spending.

Using the sales of chocolate bars as an example, Osma argues the point effectively:

…how many chocolate bars of standard quality would you expect to sell for $1? How about for $2? More or less than half? How about for $10 for the exact same package? I’d wager chocolate bars sell at least 10x better at the price of $1 than at the price of $10 each, and the increase of customer base more than covers the lower per-unit revenue.

Factoring in packaging and marketing costs to the chocolate bar producer, Osma is quick to point out the obvious differences in a physical, consumable bar of chocolate, and digital entertainment:

…of course there is a minimum profitable price for a bar of chocolate that does not become near-$0 even at very high volumes, unlike purely digital products, so increasing chocolate-sales revenue by dropping prices does not necessarily increase profits, and I’m completely ignoring the effects of packaging and marketing on the perceived value of items. For digital sales, where packaging is more flexible and material costs are effectively non-existent, we still have to consider not-unsubstantial fixed development costs, a certain amount of costs associated to servers and bandwidth, some transaction-related pricing friction, and so forth, but certainly the minimum value (and price) of one unit of digital sales can be driven much lower than a bar of chocolate.

Again, to view the article in full, including some VERY interesting pricing graphs, please go visit fishpool.org.

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EA’s Battlefield Heroes will be a phenomenon

Tuesday, August 19th, 2008

The numbers don’t lie.  The free to play, microtransaction based gaming business model works.  It not only works, but it’s making lots and lots of people lots and lots of money.  The North American market has been less than speedy in accepting this form of play.

Nexon entered the market first, and brought titles like Kart Rider and Maplestory to an audience that had never experienced this form of play.  So when big guns EA went out on the ledge and said, “Hey…we’re going to build a top notch game, able to hold it’s own at any shooter table, oh…and it’ll be free to play,” the reception was a bit lukewarm.  Granted, this has to do with the title not actually being ‘out’ on the market yet, but as momentum begins to grow, I’ve personally noticed more and more ‘w00t!  can’t wait to get my hands on this!’ comments springing up across the myriad of sites I cover each day.

Now I’m not about to put myself in the same category as David Perry, but it seems that we’re thinking the same thing on this one.  Perry recently sat down with GamesIndustry.biz and let the fan flag fly.  “I think Battlefield Heroes is going to be a huge hit, it’s going to be a bit of a phenomenon.  I have incredible faith that EA is going to pull this off.”  Perry continued, believing that most people are underestimating the project.   “For them to actually make that announcement was huge, I thought that was one of the biggest statements that EA has made in years and it just went over people’s heads.”

Building upon this, Perry noted that EA is still at heart, a retail company.  The make games, produce them, put them in pretty boxes and ship them off to retailers to them put their tax on, and pass along to the consumer.  Announcing a free-to-play, download it if you like game is not a great relationship builder with said retail outlets.  EA has already invested in the Korean market and The9 in China, but keeping it under the radar.  Battlefield Heroes is in fact, NOT EA’s first free-to-play, but rather the one that most North Americans have heard of.  EA built FIFA Online as a free MMO.  A smart move to test the international waters, as most North Americans favor their football involving a brown pigskin and not the round black and white ball the rest of the world sees as a football.

When asked about the free-to-play model itself, Perry said that the model actually allows for the potential of even more revenue generated compared to the traditional model.  “It’s a whole different world you enter when you get into free-to-play, it’s like the industry that we’ve all been missing and the second thing we’ve been missing is the idea of letting people pay what they want,” he explained.

“I’ve made so many games and we never, ever had the idea that people would pay more than the price of the game for the game, no one would pay over $60 if it’s a $60 game. On our 2Moons game, you’ve got people that spend $3,000 happily, and if we had more stuff for them to buy, they would buy it.”

As a point of comparison, most retail games sell for around $60, while Acclaim’s free to play games average a $75 take/person/game.

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