Guild Wars 2 Developer Warns Against Subscription-Only Model

BioWare recently announced that they will be shifting Star Wars: The Old Republic away from a subscription-only model towards free-to-play as a result of the number of subscribers falling bellow 1 million. Many saw this as a sign that subscription only MMOs have seen their time pass, and that’s something ArenaNet’s Chris Lye agrees with.

“I can understand the psychology of somebody who is going to take on the development of an MMO,” says Lye. “Taking on the development of an MMO period is risky enough. So people go ‘[W]ell, we’re putting all the risk into the development of this game, let’s not double-down on our risk and also try to do a whole new business model’.

“Mentally I can understand that psychology. But I do feel that any developer who wants to be successful in today’s market needs to take a really hard look and say ‘Do we really want to use a subscription, is that the best thing for this game ‘ In many cases I don’t think it is. For all we know there is a type of game out there that will continue to benefit from a subscription model, I’ve just not heard of it yet.”

While World of Warcraft continues to make money from the subscription model and many AAA products, like The Secret World, are launching in a subscription only format, these are now far outweighed by the number of subscription games that have made the shift to free-to-play over the past year.

“If you’re an up and coming business I would definitely advise you don’t naturally assume that subscription model is your business model,” says Lye. “Two years ago [developers] were all like ‘of course it’s going to be a subscription game, why would we think of anything else ‘ and now they’re backpedaling like ‘No, no, it’s not necessarily a subscription game, we haven’t decided our business model.’ Now there’s an awareness in the industry that requires a serious amount of thought as to whether you will support the subscription business model. The notion of the AAA launch-and-leave type game is declining. There’s much more emphasis on building a long term relationship with the community.

“I think that any developer who is looking to do an online game and wants to retain a long tail of an online community that they’re going to continue to work with has to seriously consider is subscription the best model or has that really been ridden to death A lot of players are telling us ‘we don’t want to be locked into a subscription, we want an a la carte model of what we spend our money on.'”

While microtransactions are generally what make up the majority of the revenue for free-to-play games, not every player will be willing to pay for them. In fact, in most games less than 3 percent of players will ever pay any money for virtual items of any sort.

“Some amount of your audience is willing to pay for microtransactions and some of them simply won’t. And that’s okay. As the developer of the game you have to totally respect that,” said Lye. “There’s a good portion of the audience that will never pay for microtransactions. But you know what, they add value to the overall game and franchise by being in the game and providing people to party up with and running guilds and adding to the social fabric of the game. So you need to provide ongoing updates for both sets of audiences.”

When you subtract the subscription from an MMO, you also increase the player base vastly. This has both advantages and disadvantages as it tends to bring less committed, more cynical people into the mix and Lye acknowledged that ArenaNet is trying to stay ahead of that for Guild Wars 2.

“Does the business model incline the community toward a certain negativity In the case of Guild Wars 2 that’s definitely been a concern of our community team. Small games with small communities are easier to control and generally they’re better behaved. And the more blockbuster your title goes, you’re more likely to bring in a lot of people you can’t always control and can’t always moderate. There’s a relationship between the size of communities. Does free to play naturally blow the size of your community out the door It’s definitely a concern.”

“It’s definitely something we pay attention to. But without having the experience of having our live community under our belt I’m hesitant to make any broad statements about that because I want to see how it goes. I can acknowledge we do expect the Guild Wars 2 community to be significantly larger than the Guild Wars community and we will make sure it stays a healthy and helpful community to anyone new to the game.”

Source: Polygon

Social/Online Companies Join ESA Ranks

The Entertainment Software Association (ESA) has announced that they have added three new members, two from the emerging online gaming realm. This include Japanese mobile/social giant Gree and leading online Chinese games company NetDragon Websoft, along with accessories maker Mad Catz Interactive.

“These new members are leaders in the breathtaking number of business models that exist to excite and reach today’s entertainment consumers,” said Michael D. Gallagher, president and CEO of ESA. “We look forward to learning from them, and protecting their future success in critical areas such as e-commerce regulation, privacy, and intellectual property protection.”

“Gree is passionate about the mobile gaming industry here in North America and is committed to its growth and development,” said Naoki Aoyagi, CEO of Gree International, Inc. “We are thrilled to become a member of the ESA, and take this important step in our ongoing focus to build the mobile gaming industry and create an ideal environment for developers, publishers, and players to thrive.”

Sony Talks Pushing Into Mobile, Social Spaces

Traditionally, consoles have been defined by the highest budget AAA titles. However, now that offering diverse online content is important, looking into social and mobile developers is vital for platform makers like Sony and Microsoft.

“I think that’s part of the evolution,” said Sony VP of publisher relations Adam Boyes. “Originally, we had a different policy on free-to-play. Now we have free-to-play content and micro-transactions We used to have certain requirements for publishing. Now we have none for developers to publish other content. You have to go through the process of submitting for concept approval, but all of these things are things that have naturally evolved over the console lifecycle. We’re evolving more than ever now because the industry is evolving.”

Boyes pointed to PlayStation Mobile as a way that Sony is embracing these new mediums of gaming. “Now we have mobile and social in the mix,” Boyes notes . “You absolutely need to tell a more compelling story. The compelling story that we feel we have is, we bring gamers that are rabid about content. It’s a certain type of people who come to our platform looking for content. People fire up their PlayStation, when they fire up their Vita, when they’re playing a PlayStation Mobile game; they’re looking for what PlayStation brings to the table.”

“That’s great, compelling content. So we feel like we rise above that discussion. If you look at a lot of the other players, they’re not focused on games first and foremost. Right now, to get your game on PlayStation 3, it’s three button presses. With other consoles it could take 10 or 15. Especially when you look at a lot of devices out there that do multiple things,” he noted. “PlayStation is a gaming machine first and foremost. It does all kinds of awesome great stuff, but at the same time, when people fire it up, they know what they’re getting. That’s what excites us.”

Source: VentureBeat

Social Media Receives Nearly 50 Percent Of Revenue From Ads

Gartner estimates advertising will contribute $9 billion to social media global revenue of nearly $17 billion this year, up from $12 billion in 2011. The approximate 43 percent increases supports stronger social signals that find their way into search, mobile and premium display ads.

“There is now a social element to most websites, for example, most email services have integrated chat rooms for their users, and travel booking sites allow users to leave messages about their experiences,” notes Neha Gupta, senior research analyst at Gartner. “However, we have only included dedicated websites in our definition and not online environments with social features.”

 

Read more at Media Post.

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Google+ Users Enthusiastically Following Brands

The number of people following the top 100 brands in the Google+ social network rose 54 percent to 12 million in the past two months, according to BrightEdge . The top 10 brands have more than 9 million followers, accounting for 75 percent of the Google+ total follower base.

“Our brand customers focus on channels from which they can drive measurable traffic and conversions,” said Jim Yu, BrightEdge CEO. “Google has Google+ content in their search engine results pages, and Bing has both Facebook and Twitter results in their SERPs. We see brands trying  more than one channel.”

Read more at Media Post.

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Olympic Brands Not Using Social Media Well Enough

Research seen by Marketing Week reveals that London 2012 sponsors must use social media in a more sophisticated way if their messages are to reach the global Olympic audience.

Most of the Olympic sponsor brands don’t yet appear to be strongly associated with the Games on Twitter. Worse, YouGov’s BrandIndex tool, which measures brand health, shows that few of the sponsors appear to be significantly benefiting from their association with London 2012.

Find out more at Marketing Week.

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Facebook Ad Clicks Claimed To Be Mostly From Bots

New York-based start-up, Limited Run, which claims that 80 percentage of the clicks on its Facebook ads came from bots. Limited Run, announced that it is deleting its Facebook page and moving over to Twitter due to the issues.

Read the full statement by Limited Run over at Media Post.

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