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Online gaming market tightens
Subscription services no longer feasible, say analysts
Shaun Nichols in San Francisco, vnunet.com24 Jul 2008
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Games companies looking to launch massively multiplayer online role playing
games (MMORPGs) should give up hope of charging subscription fees, according to
researchers.
Analyst firm Parks Associates said in a recent report that the market for
subscription-based RPGs is just about tapped out.
The problem, say researchers, is that games such as World of
Warcraft attract nearly all of the "power gamers" who pay for services.
Remaining users who seek out other games are often more casual about their
experience and less likely to want to pay for an MMORPG.
"World of Warcraft, with over 10 million players, exceeded
expectations for subscription-based MMORPGs," said Michael Cai, director of
broadband and gaming at Parks Associates.
"But it is unlikely that any other publishers will achieve the same in the
near term using a subscription model."
The analyst found that just two per cent of gamers in the US who do not
currently play MMORPGs are interesting in joining a new subscription-based game.
By contrast, 14 per cent would be willing to play a game that offered free
access.
The key to survival, according to Parks Associates, is to switch from
subscriptions to micro-transactions in which basic gameplay is free, but users
buy additional items and features through small one-time purchases.
"Free-to-play models offer flexibility, and players can choose how much they
want to invest based on interest level and play patterns," explained Cai.
"Micro-transaction models have the best potential to grow the US MMORPG
audience."
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