Posts Tagged ‘free to play’

Nexon adds Dungeon Fighter Slayer Edition to iOS – thoughts on Nexon’s bigger plan

Tuesday, March 29th, 2011

Nexon has recently unleashed their popular MORPG Dungeon Fighter for iOS devices. Known as Dungeon & Fighter in all territories other than North America, The title is one of Nexon’s hottest properties, with over 200 million registered users, and now available for play on the go.

According to Nexon, the Dungeon & Fighter Slayer Edition is optimized for all iOS devices, and created by Neople, a fully owned subsidiary of Nexon. While this might be a “special edition” of Dungeon & Fighter, Nexon has taken the higher road, and is not pushing a watered down version of the title, but rather, has included a plethora of content not found on other versions of the game. Content includes Ancient Dungeons, as well as a playable Mage class to name a few. Neople/Nexon have also taken advantage of the unique interface offered by iOS devices, as players now have access to a pinch and zoom in/out of the mini-map, as well as use on screen directional keys for movement. The title still retains it’s long standing side-scrolling game play, a mechanic players have come to love and expect from Nexon.

“The iOS release of Dungeon & Fighter Slayer Edition represents a significant step forward for the Dungeon & Fighter franchise,” said Hyun-Jong Kim from Nexon Mobile in a statement. “Both longstanding fans of the franchise and new players alike will now be able to take the enthralling action of the Dungeon & Fighter universe with them on the go.”

Now if this were any other company offering yet another version of a title, I’d promptly yawn and move on. However, this is Nexon we’re talking about here. If you’re not familiar with Nexon, in a nutshell, if you like free-to-play, or paying for bits and pieces as you go, aka microtransactions, you’ve got respect to pay. While certainly not on the level of Apple, it’s fair to say that Nexon has done for games what Apple via iTunes did for music. I’ll explain:

Apple started a revolutionary program and idea with the advent of the iTunes store. It provided a safe and legitimate mechanism whereby users could pay for what they want, and download it directly to their computer. Not coming from the exact same starting point, Nexon sought to put games piracy to bed, once and for all. Their logic? Let the games loose for free, and then charge users for what they want along the way; be that a sword or potion here, or a map or additional levels there. For the longest time Nexon pushed this business model, and is not reaping the rewards. However, this was primarily browser based gaming via Nexon’s portal only.

Within the past week, we’ve seen Nexon port KartRider and their long standing flagship MapleStory over to both iOS devices and Facebook (and other social networks), as well as lead a financing round for a promising social games development house, A Bit Lucky. It’s a fair statement to make that something is definitely afoot at Nexon. With that said, Nexon is still at the pivot point, meaning, they’re now bringing their popular titles over into the social/mobile world. I see this as phase one of a much larger plan in the works. Once Nexon is settled and established in this playfield and worked out all the kinks, I believe this will be the time when we see Nexon’s investment in A Bit Lucky start to pay off, as the firm will undoubtedly produce Nexon’s next “big hit.”

Only time will tell, but it might be time to keep a closer eye on what Nexon’s up to, as Q1 is rapidly coming to a close. Next phase? My money’s on a Q4 ’11 release, just in time to take full advantage of the upcoming iOS, and most probably Phone 5.

 

DFC Intelligence: Free-to-Play will top $2 Billion by 2015

Thursday, September 2nd, 2010

There’s little doubt in today’s digital entertainment realm that consumers are favoring bite sized bits of content over the entire meal. The same is true when looking at gaming – why buy into the entire game blindly, when you can play the game for free, but purchase only the bits you’re interested in? Following this logic, no one will disagree that free-to-play has arrived, and is here to stay for the next foreseeable future. And as developers and publishers must make a return on their investment, we’re sometimes left wondering just how much those firms can hope to recoup. According to a new DFC Intelligence report, the free-to-play market is poised to reach a massive $2 Billion by 2015. And that’s just the English speaking market.

DFClogo2009The new DFC Intelligence report pegs the current English language market at around $250 million. Based on growth and consumer patterns DFC sees this number likely to balloon to $2 billion in just 5 years. Primary factors driving these numbers arrive via a maturity of the f2p industry as a whole (i.e. higher quality products arriving on English speaking shores), as well as overall gamer perception that Free-to-Play doesn’t mean any less of a quality gaming experience.

“For many Korean companies the market in North America has not taken off nearly as fast as they expected,” said analyst Insun Yoon. “Much of this can be attributed to the immature infrastructure and a lack of established payment and service mechanisms. The good news is that this is starting to change and consumers are starting to realize that the game play of top high-end F2P games can be quite sophisticated

While it might not be the “be all, end all” figure to look at, DFC estimates that by years’ end, there’ll be around 128 million registered players of free-to-play games. However, Yoon explains, the number to keep an eye on is the conversion rate, i.e. non-paying, to paying. According to Yoon, the industry has seen a steady growth in this conversion. “Once a consumer is able to get a game downloaded and running conversion rates for high-end F2P games tend to be fairly high,” he said.

“F2P games can have multiple payment options and most successful games look to bundle products in creative packages such as the ability to buy a monthly or annual subscription that include a set amount of virtual currency,” added David Cole of DFC. “Creativity in marketing, packaging and distribution are the keys to generating increased revenue.”

If one needed further proof of the concept and model in action, one look at Turbine’s decision to let Dungeons and Dragons Online run on the free-to-play model would settle the score. Apparently, Turbine was so happy with the results that they’re now employing the same model with their flagship title Lord of The Rings Online which goes free-to-play as of September 10th.

For more on DFC Intelligence’s free-to-play market report, please visit them at dfcint.com.

 

Changyou sees 17 percent increase in Q2 YOY revenues

Tuesday, July 27th, 2010

Chinese gaming firm Changyou announced their financial results yesterday, touting a 17 percent increase in Q2 revenues YOY, generating $77.7 million.

header-girlChangyou reports that this $77.7 million is a record setting performance quarter, alos indicating an 8 percent annual revenues growth when compared to 2009. This figure is also on the high end of the group’s estimates. If their crystal ball holds true, the company is projecting an increase, up to $80-$83 million in Q3 2010 revenues.

Known for their popular free-to-play titles Tian Long Ba Bu, or Dragon Oath as it’s known in North America, and Zhong Hua Ying Xiong, Changyou attributes most of it’s success to the former. Tian Long Ba Bu helped drive the companies’ revenues to the tune of $75.6 million, indicated a further increase of 8 percent per quarter, and 16 percent YOY. Looking beyond their own borders, Changyou points to regional expansion as an additional boost in revenues. “Increased momentum,” in Vietnam and Malaysia in particular. In total, foreign licensing of Changyou’s titles accounted for $2.1 million, a growth of 15 percent over Q2 2009, and a healthy 29 percent increase YOY.

And where is this revenue coming from? When viewing Changyou’s user base, it’s clear to see that they’re on to something, as the company reports a 12 percent increase QOQ and a 42 percent YOY increase in registered accounts. Just shy of 100 million registered users, 98.2, Changyou’s paying accounts jumped 17 percent in Q2 2009, when compared to one year before, or, an increase of 2.79 million new paying customers.

“The double-digit sequential increases in the user base of our games and the record financial results achieved in the second quarter reaffirms our confidence in the future of the online games industry in China and of our company,” says Changyou’s CEO Mr. Tao Wang, Changyou’s chief executive officer.

When it comes down to dollars and cents, i.e. the ARPU, or rather, Average Revenue Per Users, Changyou admits that the number has dropped 8 percent Q2 QOQ, and 1 percent YOY, down to $24. However, according to the company, this is fine by them, as they seek, “to have ARPU within a range that keeps the company’s games affordable for the majority of Chinese game players.”

A “Fair Enough” explanation, as these QOQ and YOY increase figures are surely planting the seeds for future ARPU conversions. In other words, the bottom line might be down for now, but the fresh load of recruits will be ripe and ready for the paying vine soon enough.

 

Star Trek Online to boldly go Free to Play?

Tuesday, 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.

 

GamersFirst to release first Mac free-to-play

Thursday, June 17th, 2010

As an owner of an OSX based system, I’ve gotten pretty used to boot camp and playing PC based titles in this fashion. And while everything works (more or less) just the way that it should, there’s always that nagging feeling of – I bought a mac because I don’t like windows, why oh why can’t I play this title on my beloved OS? Well it seems as though games publishers are starting to come around to the ‘other’ side of the table. Mac gamers undoubtedly are tapping into Steam’s offerings, and others are beginning to follow suit.

taikodomGamersFirst announced that they’re making their first Mac title available: Taikodom: Living Universe. Developed by Brazilian studio Hoplon Infotainment, Taikodom is a real time space action MMO set in the 23rd century. A free-to-play EVE perhaps? GamersFirst promises to serve up jaw dropping graphics as players determine the fate of humanity in an RPG style progression space fighter.

Taikodom was originally developed for the PC platform (boo), and GamersFirst will provide the beta client sometime this year.

“The Mac platform has been in Hoplon’s plans for a while now, so we are very excited continue working with GamersFirst and offer Taikodom on Mac,” states Tarquinio Teles, CEO, Hoplon. “We want to offer options to GamersFirst’s diverse Free2Play community and presenting Taikodom across multiple platforms will expand beyond GamersFirst’s existing player base and further expand our relationship.”

While GamersFirst isn’t the very first free-to-play title available for Mac, it does look to be one of the most promising thus far. If it’s anywhere close to what EVE delivers, and at a fraction of the cost (before a shopping spree in the in-game store), I’m all for it. The more titles that OSX users have in hand now, only means that the industry as a whole will have to start taking the mac platform seriously. That is, if Apple themselves don’t beat the others to the punch.

 

LotRO goes free-to-play this fall

Monday, June 7th, 2010

It looks like Turbine isn’t wasting anytime making big changes under the Warner Bros. banner. Announced late on Friday, Turbine’s flagship entertainment title, Lord of the Rings Online, will convert to the free-to-play business model.

lord-of-the-rings-online-smallerPreviously based on a subscription model, LotRO can be seen as a viable competitor to Blizzard’s king-of-the-hill MMORPG, World of Warcraft, often involving players in similar, if yet different, gameplay and quest lines, series of play. Turbine’s Lord of the Rings Online has won multiple awards, involving players in a rich adventure featuring a massive world of up-to-the-minute graphics and game mechanics. Naturally, as a former subscription based game, LoTRO also includes all the premium features that paying gamers have come to expect over recent history.

The free-to-play version, which is slated to remain (more or less) exactly the same as the currently paid-only version, will launch this fall in North America and Europe. Euro operations of the title will be handled by Codemasters. And just like Turbine’s Dungeons and Dragons Online, LoTRO will feature a pricing model that allows players to purchase expansion packs, quest packs, items, and account services. Likewise, Turbine will also offer a VIP package, whereby users can get unlimited access to all of the games’ features (so…a subscription, more or less?).

Beta testing of the new free-to-play version will commence on July 16th. Sign up for a potential “first crack” at the new LoTRO here.

Apparently, the Dungeons and Dragons swap to free-to-play is proof in the pudding that this model can and has been working for Turbine. What can be drawn from this move is that free-to-play is more than capable of turning a profit. Dungeons and Dragons was practically done and dusted until Turbine released it to the masses for free. Hours, weeks, and months of data review has obviously brought Turbine to the same conclusion in regards to Lord of the Rings Online. Not only has Turbine used this business model to breathe a healthy breath of fresh air into Dungeons and Dragons, but it now looks like they intend on taking the philosophy one step further and see what the model can do for a healthy title.

“Warner Bros. Interactive Entertainment is bringing quality games based on The Lord of the Rings to multiple platforms, and the franchise’s expansive adventure story lends itself perfectly for LOTRO free-to-play, giving a wide range of players the opportunity to experience the game,” said Jeff Junge, Senior Vice President Online Games and Digital Games Platforms, Warner Bros. Digital Distribution and Warner Bros. Interactive Entertainment. “We are focused on expanding our game franchises onto new digital platforms to maximize quality experiences for gamers worldwide and LOTRO’s new model is a great leading example of this.”

Highlights direct from Warner Bros./Turbine:

  • Free means Free! – Players will download LOTRO by visiting www.lotro.com and join with millions of other adventurers as they explore the most complete and authentic recreation of Middle-earth ever created and participate in LOTRO’s award-winning epic story up to level 50 for free.
  • Visit the new LOTRO Store! — The LOTRO Store is loaded with thousands of convenience items as well as expansion packs, premium content, additional character slots, potions, character customization and more! The LOTRO Store is seamlessly integrated into the game and lets the player identify new and exciting ways to enhance and customize their experience using points which can be purchased in the store or earned through gameplay.
  • Be a LOTRO VIP! – Players who elect to become a LOTRO VIP will have unlimited access to all premium content, receive priority server access, 5 character slots, a shared bank slot, and a monthly allotment of points to spend in the new LOTRO Store.

Given the Fall release, it should be very interesting to see what the post-holiday season numbers on the “new” Lord of the Rings Online will look like. My guess? Turbine/Warner Bros. is about to see some resistance right out of the gate, but by Christmas, I’d bet they’re selling digital swords and expansion packs like hotcakes.

 

Free-to-play paying off big for Turbine

Monday, May 17th, 2010

This year’s annual survey of online gamers, as conducted by research firm the NPD Group, highlights some very interesting shifts in overall online gamer behavior. Recently acquired Turbine’s Dungeons and Dragons Online had overtaken long seated Guild Wars in the third place spot. As expected, Blizzard Entertainment’s World of Warcraft took the number one position, with Jagex’s RuneScape holding down second.

This past January, the NPD Group surveyed 19,000 online gamers and found that around 30 percent are regular WoW players, thus crowning the title king of online games (again). Around 10 percent of those surveyed indicated that they’re regular RuneScape players. According to Massively, both of these titles have held the top slots in this annual survey for quite some time now, with Guild Wars usually nabbing the number 3 spot.

Guild Wars’ percentage played has not changed this year (7 percent), and one would expect the results to remain the same. However, there’s been another player introduced to this highly competitive swimming pool, and it looks like this one’s a shark. Turbine’s Dungeons and Dragons Online: Eberron Unlimited has obviously struck a chord with online gamers, as the title’s popularity has doubled over the past year, enough so that it’s officially overtaken NCsoft’s Guild Wars. Even though DDO’s percentage was not given, it must be above 7 percent, but less than 10 percent, so for arguments’ sake, let’s say 8.5 percent.

If this isn’t the turn around/comeback/holy smokes story of the year, than I’m not quite sure what is. If you’ll remember, Dungeons and Dragons, while moderately popular, was at the phase in a product’s lifecycle where it either a) receives a major renovation, in one form or another, and is quasi-re-released, or…b) the title quietly subsides into the darkness where video games go to sleep. In DDO’s case, for many months it was looking like the later. Until … one (probably more, but let’s heighten the drama), brave individual at Turbine had the idea of converting the game to a free-to-play, and monetizing it through in-game sales, as well as offering a subscription plan to those that are interested (a hybrid, if you will).

Fast forward a few months, and it looks like the decision to take DOO to the free-to-play model has/is paying off handsomely. Not only has Turbine been acquired by Warner Bros., but they’ve now got a bona-fide hit on their hands, and on that was slated for the dustbin at that. The NPD report backs this supposition, as their data indicates that subscriptions are starting to lose their attractiveness to online gamers, down from 130 percent in 2009 to now a paltry 18 percent.

 

Runescape pulls down $58M in 2009 revenues, profits $27M

Thursday, April 15th, 2010

Given the rise in free-to-play gaming popularity over the past few years, it’s no longer a debatable fact whether or not the business model works. And while we’ve talked numbers in the past, additional information on the model and the industry behind it never hurts. It should come as no surprise that one of the most popular free-to-play MMO’s is bringing home some serious cash.

Recently unearthed by Games Brief’s Nicholas Lovell, British game developer Jagex, producers of Runescape, are bringing home revenues pushing £38.4 million (~$58 million), with profits of £18 million (~ $27 million), according to the Companies House, a requirement for all British firms.

jagexfinancials
Jagex’s revenues illustrate a 47 percent operating margin, including the tens of millions of pounds spend on the debacle that became Mechscape. 94 percent of Runescape’s revenues do come from subscriptions, but Jagex is still brining home over £2 million in ad revenue each year. Certainly nothing to sneeze at.

While over 10 million monthly unique users, 9 million of which play the game for free, 1 million of them subscribe to the service each month.

Also according to the Companies House, Jagex shareholders have cashed in over £31 million (~$48 million) in dividends over the past four years, and the company has an active £15 million (~$23 million) in the bank ready to be used for future development.

As Games Brief asks, “Still need convincing Free-to-Play works?”

We don’t.

 

Age of Conan goes free-to-play. At least for the first 20 levels. For now.

Tuesday, December 15th, 2009

Norwegian games developer Funcom has recently announced that they’ve opened up their MMORPG Age of Conan Hyborian Adventures as a free-to-play game, with caveats, of course. Players that download the client, register, and start playing what Funcom calls a ‘trial’ between now and January 1st, 2010 won’t have to pay a dime. At least not for the first 20 levels, which includes the Island of Tortage, the game’s first starting area. After which point, Funcom is banking on players enjoying the experience so much that they’ll be willing to fork over some cash for the subscription service.

“Our original seven day trial has been very successful so far,” says Morten Larssen, Vice President of Sales and Marketing at Funcom. “But with the holiday season coming up this is the perfect time to shake up our trial offer a bit and try out something new. So everyone who downloads the trial before January 1st will be able to play the first part of the game for free, forever. We are confident that many of those taking advantage of this offer will choose to become permanent players, allowing them to experience all of what the game has to offer including all the additions and improvements introduced since launch.”

Ok, not a bad promo. Unless of course, you look at the less than stellar performance Age of Conan has seen since it’s launch. While Funcom bills the title as a “smash hit in retail,” looking at some of AoC’s past ‘achievements’ reveals a slightly different story. Remember, AoC is the same title that saw half of it’s servers shut down at the very beginning of the year. Only a few months later, Funcom’s financial report revealed that AoC was clearly not living up to the company’s expectations. Funcom then moved on to giving away virtual goods as a way to draw in more players, as well as initiating the ‘free trial’ program Larssen’s statement refers to. To top it all off, all of this Age of Conan activity has been taking place post Funcom announcing that they’ve got not one, but two free-to-play titles in the works.

Again, with the talk of free-to-plays in development, combined with the proverbial flogging of the dead horse – calling a play from the Turbine handbook doesn’t seem too far off. Remember Turbine’s flailing Dungeons and Dragons Online? Almost banished to the depths of obscurity, Turbine made the move to convert DDO to a full fledged free-to-play, and has seem massive interest, action, and associated sales and revenue arriving via the in-game shop. Now if I were a betting man….I’d be playing an all in on 2010 seeing Funcom do the very same with Age of Conan Hyborian Adventures.

 

Battlefield Heroes raises prices – receives player backlash

Wednesday, December 2nd, 2009

The EA/DICE title Battlefield Heroes has had a bit of a long and winding road. From being ready to go, then only to be put on hold, and finally the release with a rather gradual, we’ll let anyone in beta. Back in September EA reported that the free-to-play title had passed the 2 million registered players mark, and all seemed well. Likewise, only a month prior, EA’s own senior analytics manager Rommy Ghaly revealed that on average, users spend around $20 in-game. Sounds fair, and all is fine and dandy in this free-to-play shooter n’est pas? Well….apparently not, as EA dropped the virtual bomb yesterday by announcing that the cost of in-game earned currency was going up, while at the same time, RMT (real money transaction) cost were to be lowered. In other words – earning currency by playing has fallen out of favor at EA, and cold hard cash income is coming to the forefront.

Announced on the forum, Battlefield Heroes price restructuring took effect on the 30th, and offers players incentives to purchase items using real money transactions to purchase the virtual currency BattleFunds, as opposed to the currency earned through play, Valor Points. In effect, EA has jacked up the cost of items purchased with Valor Points, while cut the cost of items purchased with BattleFunds by upwards of 50 percent.

But why? To find the answer to this, one might want to have a read through the 70+ page forum thread of players’ reactions. To say that they’re not pleased might be a bit of an understatement. However, if seen from EA’s position, they’ve got an interesting quandary on their hands now – one that can effect virtual economies if not properly planned. It seems as though EA has an imbalanced economy, in so much as players with plenty of time on their hands, ones that have acquired massive amounts of Valor Points through play, often have accounts with upwards of 20,000 points just sitting in the economy. Through not spending this currency, the in-game economy becomes unbalanced. To add to the headache, items purchased with said Valor Point are impermanent items which expire after a certain amount of time. Conversely, items purchased with BattleFunds are permanent items. In other words – those that spend real money for items have them forever, while earned currency buyers have advanced items for a pre-determined time period. The question is – will this change now upset game balance?

What’s also important to keep in mind here is that when Battlefield Heroes first arrived on the scene, they were the only free-to-play first person shooter on the market. Since then, competitors such as Nexon’s Combat Arms or Subagames’ Cross Fire have joined the free-to-play fps ranks. As expected, with the pricing change, a number of vocal players are irate, and have suggested that they’d rather move on to something else, rather than grind away for days on end to acquire items that previously only took a few hours to get. And while these vocal players often serve up empty threats, given the number of them (not counting those that have NOT voiced their opinions), a mass exodus is something that EA should be considering carefully before we see the once promising Battlefield Heroes dead in the water.