Posts Tagged ‘gaming business’

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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There’s room for both Micro-transactions and subscriptions

Sunday, August 10th, 2008

Micro transactions vs. subscriptions continues to be a hot topic of debate in not only the MMO world, but RTS and FPS fans love to weigh in as well.  While certain types and profiles of gamers my prefer one method above the other, it has become quite clear over the past few years that micro transaction based titles aren’t going anywhere soon.  As the ‘standard’ style of play in most Asian markets, the free to play concept originated in Korea with Nexon’s titles first offering players (all players) a chance to play, with available upgrades at a small cost.

While there are a number of offerings that micro transaction titles can offer; casual gamers can play whenever they want, and not be bound to a ‘time based’ subscription, players may choose to upgrade their equipment at a small cost if they so choose, games are not pirated.

Derrick Schommer of Gaming Podcast recently published an article with similar thoughts.  Highlights of Derrick’s thoughts include:

The micro-transaction concept could still help pay for all the overhead of running an online gaming business because gamers tend to be over-enthusiastic about their great addictive games. If you build a game with excellent content, replay value and strive for a community atmosphere a micro-transaction title can work just as well as a subscription based game.

One beautiful aspect to micro-transaction models is paying for content when you’re willing to pay. This includes cosmetic character alterations, basic needs items (health potions) and other products to enhance the playability of the game without requiring the gamer to do so. There will be some gamers that use this as a “free ride” and never buy anything while other gamers spend way too much because they have expendable income which helps balance out costs.

The trick to a micro-transaction game balance is allowing players to enhance their experience without taking away or crippling their game to force a micro-transaction. You do not need a “fire enchantment” which causes a bit more damage and looks really cool, but it can make your character look more sinister and provide slight benefits to battle.

Wouldn’t this make the rich more powerful than those without a lot of cash? It might might them moderately more powerful and definitely more pretty to look at, but it also allows players who would never be able to experience any of the game a chance to play. In some ways, the level ground is already broken in MMO’s like World of Warcraft based purely on game experience… a player who’s been playing for three years and has a level 70 character will dominate a person with casual gaming habits. Nothing in the world is fair, at least this gives lower level characters a chance to spend some cash to get their character on par when they’ve not got time to work through the game with hours of time investments.

Couldn’t have said it any better myself.  Read the rest of Derrick’s article at gamingpodcast.net.

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