Posts Tagged ‘dungeons and dragons’

Turbine to tackle console MMO and microtransactions?

Wednesday, September 23rd, 2009

What would a hot day in Texas be without a little dust raising? It looks like Turbine’s VP of Product Development, Craig Alexander raised a little dust himself, as well as a few eyebrows when he took the stage on the last day of the GDC Austin 2009 event. In his presentation Alexander stated that the market of MMORPG’s on consoles, specifically Microsoft’s Xbox 360 and Sony’s PlayStation 3 could be worth in upwards of $2.3 billion a year. Obviously a number no one is willing to pass on. However, up until now, no one’s taken a fair stab at making this dream a reality. To this end, according to Alexander, Turbine’s about to take a serious run at tapping this multi-billion dollar market.

craigalexanderIn his address, Alexander confirmed that the Westwood, MA based Turbine studios is in fact current at work on a console MMORPG. Citing the technical challenges of the physical operating procedure Sony’s PS3 employs, Alexander said that the team is developing for the PS3, with plans to shortly there after port the title to the Xbox. But if it sounds so easy on paper, why haven’t there been more serious attempts at addressing this market? In the end, it comes down to one simple answer: Money. According to Alexander, any decent attempt at this project is going to cost somewhere in the $20 million range just to develop. Given that Turbine has recently started receiving funding from a proposed $50 million investment round, their popular Lord of the Rings Online shows no signs of dipping in popularity, and their most recent experimentation into the world of hybrid subscriptions/microtransactions supported Dungeons and Dragons is out of the gate with a label of success, it’s fair to say that Turbine has the cheddar to make this a reality.

Alexander says that part of the difficulty in creating an MMORPG for a console is that in order to succeed, it must be radically different from the current state of play. A console MMO would need to have better graphics, less grind, and much more social interaction than is currently employed in the unofficial ‘standard elements your MMORPG must contain’ handbook. Speaking to the fact that many consider MMO’s a purely PC based form of play, Alexander was quick to point out that the same arguments were previously made when applied to sports sims and the FPS genre, but now market leaders Madden and Call of Duty have a massive console audience and following.

When talking monetization, Alexander primarily focused on subscriptions. Notably, he pointed out that reoccurring billing (subscriptions, if you will) options are already available on both platforms, and that the Xbox Live services are a clear indication that set top box players are willing to set up subscriptions and pay for additional enjoyment. If any of this sounds familiar, don’t forget that the rumor mill was rife with speculation back in May when the idea of LotRO microtransactions being utilized in the Xbox 360 item shop circulated. Alexander flatly and specifically denied this rumor of porting LotRO to the Xbox during his presentation.

And while the rumor didn’t pan out, it’s clear that with the implementation of a hybrid model with Dungeons and Dragons Online, and this confirmation that Turbine is seriously committed to a perhaps industry revolutionizing MMO for consoles project, clearly something major is afoot at Turbine. If they can truly hit the nail on the head and show us something that’s never been seen before, the pure subscription based model may have merit, but if they fall anything short of perfect, we may see them revert to something they’ve already seen work, and work well – the microtransaction/subscription hybrid model.

 

Big Numbers from Big Players at Austin ‘09

Monday, September 21st, 2009

Last week’s GDC conference in Austin spilled out a ton of information not only about what’s up and coming in the gaming industry, but also the current state of affairs. One of the most interesting sessions saw EA, Turbine, K2, Linden Labs, and IMVU pony up and lay down some eye opening, if not eye popping, facts about their microtransaction and virtual goods monetization business models.

EA, perhaps the biggest and oldest games makers now involved in the freemium market reported that after initially only selling character customization options, sales were simply OK. Specifically speaking to Battlefield Heroes, once EA instituted Boost packs, these items/options quickly shot to the top of the list. Learning from this lesson, and perhaps overcoming the initial public balk, EA is now trending towards introducing these options into all of their freemium products. The focus here is on in-game advantages that drive higher conversion rates over that of purely cosmetic items. Using this formula, EA expects a 7-8 percent conversion rate in it’s freemium games, but realizes that rates may be driven down to the 5 percent range, do to the influx from social network traffic.

Turbine is looking good with what at the time raised a few eyebrows when they announced that their long time subscription title Dungeons and Dragons switched to the free-to-play model. Turning more than a few heads, Turbine execs announced that the free switch has significantly increased subscription rates, as well as concurrency rates. To be fair, Turbine is offering a subscription/freemium hybrid model, which the company believes to be the optimal solution, capturing both hard core, play all the time fans, while also hooking the players that only want to pay for what they want, and not for what they don’t. Subscription players are given a dedicated monthly allowance of virtual currency, and free players are given the option to purchase virtual currency with RMTs. Both allow players to unlock a variety of in game content.

K2, publishers of Knight Online, Red Stone, War Rock, Global MU Online, and Sword of the New World, report that every single cent of their revenues are derived from in-game item sales. Citing their key focus on community management, K2 claims an extremely high ARPU. “ARPU is high, relationships is long and persistence is everything.” Given that their revenues are items sales driven, K2 is aggressively pushing for expansion in Turkey, Brazil, and Eastern Bloc countries, areas were the freemium model has thus far been tremendously successful.

Linden Lab, publishers of perhaps one of the most well-know Virtual Worlds, Second Life stated that their annual revenue was over $80 million, and that they’re closing in on the $100 million mark. The company monetizes in one of three ways: Currency sales, premium subscriptions, and a hosting package that allows users’ 3D items to persist throughout the games. Given Second Life’s rocky, sometimes controversy filled, track record, the folks at Linden are now focusing on plugging the holes, and retaining active users as opposed to seeking out new Second Life residents. Linden Lab execs say that the largest stumbling block they’ve encountered is in-game fraud. Remember, Second Life allows users to create their own items for sale within the game, sometimes leading to a removal of currency from the virtual economy. The company considers this fraud/loss risk a basic price of doing business.

Rounding out the top 5 on parade at the GDC Virtual Worlds Monetization talk was IMVU. The firm says that 80 percent of their revenues come from sales of virtual items, and 20 percent from advertising. While 20 percent is a sizeable contribution, IMVU says that this revenue is only possible due to it’s expansive virtual world. They stressed importance on non-paying users, as they add to a large community, and encourage others to be drawn in. Comparing themselves to eBay, IMVU execs cited it’s catalogue of over 2.5 million virtual items made by 20,000 users. The top designers of virtual items within IMVU properties annually earn over $100,000 annually, however, the IMVU market functions on the long tail model, whereby the top 10 catalogue items only account for .2 percent of all sales.

Thanks to Ada Chen for outstanding notetaking.

 

DDO sets a date, and Age of Conan goes free-to-play (sorta)

Thursday, July 9th, 2009

Two exciting announcements came to light yesterday, Turbine’s anticipated re-working of Dungeons and Dragons Online (DDO) set a launch date, and Funcom’s Age of Conan is trying to reawaken slumbering former players with a free-to-play offer.

DDO Unlimited

Turbine gave the official announcement yesterday, setting August 6th as the ‘we’re open for business’ date. VIP folks, those paying an optional monthly subscription, will be able to get their dungeonmaster on two days before the non-paying peeps, with a green light on August 4th.

As a free-to-play revival of the somewhat dead former subscription only MMO, the game will be supported primarily through microtransactions. We’ve run through the DDO store pricing and options here.

This relaunch isn’t your standard fair either, with a boatload of new content arriving on Eberron shores shortly. Players will have access to a new character class, Favored Soul – a monk/priest/cleric type hybrid. New adventure packs, level cap, and an improved combat system are all on tap.

“The DDO Unlimited Beta has been a huge success and we want to thank all of our players who have participated to help us make this the best free-to-play game on the market. On August 6th we are going to change what it means to be free-to-play with the most immersive, action-packed and full-featured MMO that provides players with a choice in how they play and pay for the game,” says DDO Unlimited executive producer Fernando Paiz.

Age of Conan

Oh Conan. What can we say about you that hasn’t already been said? Starting back at the beginning of the year, Funcom’s Age of Conan more than halved the number of servers supporting the title from 49 to 18. A few months later in March, the Funcom financial report saw Age of Conan coming up short, both on revenues and player expectations. Fast forward one month, and Funcom is now offering a free trial program as well as tossing in a few virtual goodies to sweeten the deal.

Another three short months later, it looks like Conan is falling back to some of his old tricks, by now offering inactive players two free-to-play weeks, should they decide to come back and see what’s changed.

“For anyone with an inactive account who ever thought about giving it another try, this is your chance,” says Morten Larssen, Vice-President of Sales and Marketing at Funcom. “After the hugely successful launch last year we immediately started working on updates that would make the game better and provide more content for players, and that is what we have been doing this past year. With the most recent update just out the door, this is the time to ask players to come back and see the results!”

“It has been quite a journey for the entire team getting to where we are today,” says Game Director on ‘Age of Conan’ Craig Morrison. “I think that players have always seen the great potential in ‘Age of Conan’ and we have put a lot of effort into realizing that potential. The game has improved tremendously since launch and we look forward to having players come back and seeing the changes for themselves!”

The free-to-play campaign being offered to closed account players is valid only between July 8th and July 22nd. Funcom’s offer comes on the heels of a new expansion announcement, as well as bug fixes and client updates.

 

Chalk up one more: Turbine’s Dungeons and Dragons goes Free to Play

Wednesday, June 10th, 2009

Well here we have it, Turbine’s first foray into the world of free-to-play, microtransaction and/or subscription supported gaming.  They announced yesterday the opening of the Beta program for what will be now known as Dungeons & Dragons Online: Eberron Unlimited, or DDO Unlimited for short.

picture-11Since it’s 2006 launch, DDO has been a $14.95/month subscription only MMORPG.  Scheduled to launch later this summer, the free digital upgrade to the existing title, Dungeons & Dragons Online: Stormreach not only takes the game over to the free-to-play side, but also includes a number of new features, sure to make existing players happy, as well as entice newcomers in the front door.  DDO Unlimited will raise the level cap to 20, add major new content, a new class, and features a new 12 player raid.

The new DDO Store, aka where the microtransactions occur, will be instantly accessible from anywhere in the game (no running home to make a purchase), and will sell equipment, new adventures, additional character content (including the new monk character class), NPC hirelings, and a wide variety of assorted useful items.  Players wishing to utilize the store may purchase Turbine credits with RMT’s.  The E3 demo showed just how easy the process is.  If a player arrives at a premium content destination, a locked door, or locked dungeon, for example, the DDO store function kicks in with a handy link directly to the purchase point.  In other words, Turbine has made the process as friction-less as possible, and with a minimum number of clicks, players can have instant access to the locked content.

Is this going to ruin the game?  Not the way I see it.  Turbine was quick to stress that free players are not restricted in their progress, will have constant access to the games’ servers, and may progress all the way through to the game’s level cap (20).  Pushing this point one step further, there are some high-level items that one simply may not purchase via the DDO store, and must be acquired from actual play.  As players quest, battle, and raid their way through Eberron, they earn Turbine points which they may then spend at the aforementioned DDO store, therefore, explaining the above, it is theoretically possible to play the entire game and equip items from the store without ever spending a dime.  Provided you’ve to the time on your hands to accomplish this.

And while the new game will go the free-to-play, microtransactions route, Turbine is also offering a VIP level of enjoyment.  The VIP program is an alternative to the microtransaction route, in which players receive some in-game money, access to all classes, races, in-game lands, and extended character slots.  Existing DDO subscribers will automatically be upgraded to this VIP status, and newcomers will have the option to lay down the $14.95 to become a VIP.

Turbine director of communications says in a report by masshightech.com, “This is very much in line with the way D&D sold itself back in the day. You are paying for content when you want it, as opposed to this all-you can eat buffet.”

Mersky also notes that Turbine began preparations for the new DDO pricing structure and business model more than a year ago.  Since announcing the beta sign up early in the day on Tuesday, Turbine has “already had tens of thousands of sign-ups in the past few hours,” Mersky said.

Suddenly, Turbine’s job announcement for an e-commerce/microtransactions manager, as well as the recent appointment of M. Beau Paradowski as CFO is all becoming very clear.  As Turbine is a highly respected and trusted name in the world of MMORPG gaming, it should be very interesting to see both how the company fares with this new offering, as well as how players receive it.  Welcome to the free-to-play realm folks, we’ve been waiting.

 

Turbine lands $40M in financing via Time Warner and CGV Capital

Thursday, June 5th, 2008

Turbine Inc. makers of top titles ‘The Lord of the Rings Online’, ‘Shadows of Angmar’. ‘Dungeons and Dragons Online’, and ‘Asheron’s Call’ have sealed a $40M financing deal with top investors Time Warner Inc. and CGV Captial.

Time Warner Investments target non-control strategic investments, and is an integral part of the Time Warner parent company, a leading (if not THE leading) media and entertainment company in the US.

CGV Capital is a leader in expansion-stage venture capital investments in the U.S. and China.  The firm manages over $1B in global capital from it’s offices in Silicon Valley, Shanghai and Singapore.

“Our investment in Turbine is an important addition to Time Warner’s entertainment initiatives,” said Rachel Lam, Senior Vice President and Group Managing Director of Time Warner Investments. “Online interactive
entertainment is a huge growth market and we are very excited about Turbine, its unique capabilities and the obvious opportunities that exist with our own broad portfolio of IP.”

“The demand for massively multiplayer online worlds is exploding both geographically and in terms of platforms served,” said Hany Nada, managing partner, GGV Capital. “Turbine is a proven leader in massively interactive online entertainment and the incredible technology that supports it. We look forward to marrying our strengths both here and in Asia with Turbine’s unique capabilities.”

Turbine CEO Jim Crowley says, “This is truly an exciting time for Turbine. The addition of Time Warner, one of the world’s largest media companies, and GGV Capital, one of the financial community’s most sophisticated investors, adds a level of access, perspective and experience to Turbine that is singularly unique in the global online entertainment space. Turbine has an extraordinary team, incredible technology and a growing portfolio of games based on some of the most popular brands ever created. With this funding we are uniquely positioned to change the future of online entertainment as we bring new titles to market, expand the platforms we support and introduce new technologies to sustain self-evolving game worlds.”