Free-to-play is one of the most significant business disruptions to ever hit interactive entertainment. Nexon America CEO Daniel Kim reckons that console makers need to adjust to the new free-to-play reality or face extinction.
“Console developers are starting to realize that as well, that unless they make accommodations or think about changing their own business model they’re going to quickly go the way of the dinosaurs,” said Kim. “It’s really hard to beat free-to-play as an offering. The console guys are starting to realize that, but they also have a challenge in that they have a vested interest in an existing business model of packages. I know it’s tough for them to just cut off hundreds of millions of dollars in revenue to say ‘OK, we’re going to go free-to-play and make our bed here’ because that’s going to piss off a lot of people who they already have an existing business relationship with.”
“I understand the challenge but unless they’re being aggressively proactive about making that leap – it’s kind of like the Indiana Jones, taking that leap of faith – unless you do it there’s no other way to continue to grow,” he added.
Source: GamesIndustry International