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Why is "Freemium" the new rage? More than paying monthly fee
TheScavenger
Member EpicPosts: 3,321
Freemiums are very expensive. Ever taken a look at everything you would need to unlock, compared to just paying monthly? Vanguard, Everquest 2 and Lord of the Rings online (unless you grind for a year to get it for free)...all cost more than a years worth of subscription would if you wanted to unlock every class/quest/bags/etc. EQ2 and VG being the most expensive out of the ones I listed. Sure, you can play for free...but they are more like an extended demo than anything.
A real free to play is a lot better, since you can truly play for free and everything is unlocked, without being nickle and dimed. Granted, it may or may not be pay to win. Or a one time fee like Guild Wars, works just as well. Pay once, and never pay again (except for cosmetics or whatever). Buy to Play and (usually) cash shops free to play (not freemium) are WAY cheaper than how freemium games are, in any case. Not sure why everyone is on the freemium bandwagon, when there are very good MMOs built around free to play (or buy to play) that are actually good, and a lot cheaper.
A real free to play is a lot better, since you can truly play for free and everything is unlocked, without being nickle and dimed. Granted, it may or may not be pay to win. Or a one time fee like Guild Wars, works just as well. Pay once, and never pay again (except for cosmetics or whatever). Buy to Play and (usually) cash shops free to play (not freemium) are WAY cheaper than how freemium games are, in any case. Not sure why everyone is on the freemium bandwagon, when there are very good MMOs built around free to play (or buy to play) that are actually good, and a lot cheaper.
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Comments
It's spin. Instead of admidting they are making sub-par games, the industry blames the pay model.
All those Freemium games launched as P2P, people were willing to sub. They played it and determined the game wasn't good enough to warrant a subscription.
The "Freemium" model allows those games to limp aling for a while, becoming less Fremium and more P2W over time.
Why would developers blame themselves when they can blame their consumers?
The gaming media, either knowingly or not, has latched on to the gaming company's spin. Futhermore, even financial publications have caught the bug.
SWTOR is the latest and greatest example of this.
I could go on but I might wind up using a lot of BUZZWORDS.
i would not call LOTRO a subpar game by any stretch.
LOTROs main problem before free/mium was that a bazillion people bought lifetime subs for 199 dollars and never ever had to pay a sub fee again. (and if i could go back in time i would have done the same) so people were playing the game for years and not paying (and they still do to this day because all lifetime members got vip status for life) .... someone in some accounting department got fired big time for that i am sure. it was a bad actuarial decision
but it's a good game, it still is. the only blip was moria and to be fair there were people who adored moria (not me). I am happy they added an intrinsic way of avoiding moria with the skirmishes in a later expansion.
RIP Ribbitribbitt you are missed, kid.
Currently Playing EVE, ESO
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I actually really liked Moria.
But LOTRO did get worse when they went free. Being an explorer, I love to discover areas and new things. When I first entered the game after a few months of it being free to play...on a new character...every single piece of land was already automatically discovered? I pretty much logged out after that. That was a huge slap to us explorers. No point in exploring if everything is already discovered for you.
But that is another subject I guess.
The only "Freemium" games that are actually free, when they used to be pay to play...are Ryzom (but again, more like a VERY extended demo...since you are limited to a few things and skill level if you are free. But out of all the Freemium, in comparison it is very very free)
The other one that did a really good job of going free to play, was Fallen Earth. It is even more free than Ryzom. No content locked out to you, and the only "downside" is less exp earned (which I find a very good thing) and less crafting.
Everyone else just did a money grab.
My Skyrim, Fallout 4, Starbound and WoW + other game mods at MODDB:
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Is a man not entitled to the herp of his derp?
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I also think we need to deferentiate between LOTRO/DDO and the rest of them. There has been no financial indications from any game except DDO that they increased profits by going F2P. DDO was really the first AAA title that tried it, and I believe they had success MAINLY because they were first. It also helps that they had a fairly generous free experience and their content was set up well to work with a hybrid model. There are a lot of people on these forums that think that jumping to a f2p model is a no-brainer, when there really isn´t any evidence it works, except for the very early reports out of DDO.
I think there is this misconception that games like EQ2 and AOC are suddenly making a lot of money. Nothing indicates they are more profitable now, and a lot of things indicate that they haven´t even increased players. AOC for example, has merged servers AFTER going F2P.
People take that early report from DDO and apply it way to liberally as ´success of the f2p model´. Trust me, DDO, LOTRO, EQ2, SWTOR and AOC would all MUCH rather have a very steady $15 per player per month coming in.
Freemium is a way for companies to do one of two things...
1) Save an MMO than was failing to make sufficient revenue to keep the servers going
2) Further monetize players to increase revenue from the game
In the case of DDO, VG, EQ, DCU, CO etc, it was 1. In the case of LOTRO, AoC, STO and EQ2, it was 2.
Gaming, like gambling, has some consumers who are called whales, these people have money they are willing to spend above and beyond a subscription fee. Freemium allows the company to exploit this and gives the whale the ability to pay out hundreds if not thousands beyond what they would've payed for the subscription fee. It also provides a free trial that potentially could convert consumers into paying for the game who otherwise wouldn't have tried it before as a normal subscription game.
It is a clever business model that benefits both consumers and companies, but it must be handled in moderation by the company. Unfortunately, most companies are pretty damn greedy and will squeeze ever cent they can out of the consumers until they've bled them dry.
I also think pay to win is a poor generalisation of most micro-transaction business models. The companies couldn't care less if what they sell helps you win or not, what they're trying to do is make it pay to play, but disguise this by selling it in small chunks rather than a regular fee or all up front.
Think, pay as you go phones compared to monthly fee phones. A little bit here, a little bit there, but in the end, it can and likely will, cost you a lot more.
Because companies earn most money that way. Why players becomes so happy when their game go freemium is however a mystery to me, I quit EQ2 when it became freemium myself.
Freemium seems to be mainly a Western thing (I think Turbine invented it), the Asian F2P games have other ways of handling things but they rarely force you to pay for content, instead it takes forever to level up unless you buy XP pots and better gear but those still tends to be cheaper than freemium unless you buy new gear way too often.
I prefer B2P myself, like GW1 and after that P2P (without item shops or other scams).
I think a big problem is how companies implement the FTP model (cough SOE). I feel the company is just trying to get me to sub by the restrictions they implement and the in your face banners in game to upgrade to gold membership. They need to relax there approach, allow the player to get comfortable in the game and want to support the game by cash transactions.
I like the FTP model, it suits my play style. I played EQ for over four years and was happy to pay subs. Since then the majority of MMO's I have played have been shallow affairs and I've only lasted two to three months before getting bored and cancelling. I'm more than happy to support FTP games if they are good and I feel the FTP matrix is fair with cash shop purchases.
The good thing about FTP if I leave the game for a while, i know I can come back and play my characters without the need of subbing again.
Many points brought up here are good. Most people associate F2P with freemiun, which is not necessarily the case.
The thread title may be a little misleading, because freemium's are not the rage with consumers, they are more the rage with developers (especially those with underwhelming games). For the consumer, playing a game with gated content only serves to separate friends and guilds into those with or without various features / contents.
I like NCSoft's "Truly Free to Play" models personally, where the entire game is free, with only cosmetics and other frills for sale. Games with housing can sell other variations for furniture. Games heavy on character graphics can sell appearance-tab'ish stuff (skins).
Freemiums often tend to eventually go P2Win, as others mentioned, especially when cash shop sales eventually slump. As a consumer, I don't want to play a freemium (it's not my rage), I'd rather play a real F2P game ... and if the game is P2P (monthly sub) then it better be worth it.
B2P is another good alternative to Freemium, but P2Win might be a problem. Anet may not go P2Win, but you can bet your ass that a B2P game from EA would be totally P2Win with DLC on day 1 :P
I guess there is no good 1-answer fits all, because it depends on the company / companies involved.
Want a nice understanding of life? Try Spirit Science: "The Human History"
http://www.youtube.com/watch?v=U8NNHmV3QPw&feature=plcp
Recognize the voice? Yep sounds like Penny Arcade's Extra Credits.
There is no such thing as free to play. You will pay one way or the other. It just so happens sub games in the long run are cheaper, and more honest about what they're doing. The reason f2p still has appeal is quite a few gamers are young, and as such most of them can't afford to buy food all the time let alone pay a sub.(this was hyperbole to make a point, please don't make an issue of it) So, these kids know that they're at a disadvantage by not paying, but tehy don't care because they could barely afford to play if they had to buy it and sub. This is my personal theory, for at least part of the reason, f2p has become so popular. Most of us would rather pay a sub fee than get nickel and dimed to death, plus there is nothing more annoying then when I log into my fantasy game escape world and see that stupid cheesey banner for double cash tuestday, can't afford it, eff it finance it!! The minute you bring real world economic power into the equation you've ruined the escape.
Devs have to pay themselves, investors, employees etc, they don't do this to make you special little snow flakes happy, they do it for (and I know this makes generation occupy cringe) profit....motive......
The best answer is a standard sub fee that everyone pays. Keeps the playing field level and accomplishment in game at a premium, as opposed to me just buying what I want because i got some scratch.
Aion is a truly free MMORPG. Anyone can download it for free and obtain max level & do endgame PVP / PVE raids etc. The cashshop has frills & leveling boosters (50% xp boost for 1 hr). Nobody really needs xp boosters if they enjoy MMO's, so there is in fact such a thing as free to play. It's just certain companies would rather pretend that F2P doesn't exist so they can continue to nickle & dime you.
Games that are truly F2P tend to sweep the market (see also League of Legends), while freemium games just stagnate around a handful of players and never really grow.
Want a nice understanding of life? Try Spirit Science: "The Human History"
http://www.youtube.com/watch?v=U8NNHmV3QPw&feature=plcp
Recognize the voice? Yep sounds like Penny Arcade's Extra Credits.
In theory, freemium is great for players, since you only ever have to pay for the game if you actually decide it's worth the money. This is getting better the more fremium games there are, since with more options, the devs actually need to provide the players with better experiences to be able to compete. Why would you pay a single dime for a game you don't enjoy if there are 12 other free alternatives?
In practice this doesn't quite work that way, because many MMO players are essentially addicts, and pay absurd amounts of money for things that they know deep in their heart are completely worthless.
If I did not personally know a couple people with that attitude I would never believe that statement. Welcome to the entitlement generation.
There are certain queer times and occasions in this strange mixed affair we call life when a man takes this whole universe for a vast practical joke, though the wit thereof he but dimly discerns, and more than suspects that the joke is at nobody's expense but his own.
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If you are one of those two types and don't go with the monthly fee, then a fool and his money are soon parted. Don't expect any sympathy from me because you are stupid.
You use terms here such as "clever"... "disguise"...I use the term Deception. That's what the words clever and disguise mean to me.
I realize in US culture such tactics are generally considered virtues...yet I as an American citizen consider these business tactics as criminal, and I would like to see all such business activity be labelled as illegal.
Same goes for all areas of business. Deceptive business tactics should be outlawed. I have seen a lifetime of business people feeding off of customers like they were just livestock and I am disheartened to see the same happen in MMO Gaming.
Maybe you think it's clever, but I don't. I have nothing against you personally, but maybe now after I have shared my POV here about this perhaps people will better understand why some of us disagree with Free to Play (Freemium) so completely.
I've played LotRO for about a year and a half and have spent a grand total of $50 on it. That was to buy the 2nd tier ROI expansion for the extra goodie it brought with it. My char. is level 75 and while it took a while to get there, I'm one of those who doesn't need to run fast to endgame. I actually enjoy playing the game itself or I don't bother.
So, if it's not an obvious Pay2Win game, there's no reason that Freemium would be more expensive than a P2P game unless you have no patience (within reason) and think the only reason for the games is to get to "endgame".
You want me to pay to play a game I already paid for???
Be afraid.....The dragons are HERE!
Its the worst possible business model for the players. Power gamers will need to pay a fortune every month.
When a game's subscriber base has plateaued, company income also plateaus. Going Freemium presents the potential to garner more income. The presumption is that enough of those loyal subscribers will remain as premium players. So, in addition to those fees, the company looks to collect additional income from cash shop sales -- to both the new, free players, and the premium customers. Essentially the gamble is that the cash shop income will offset any losses in "subs" and in addition generate more revenue.
Why hasn't Blizzavision done this then? Either they are happy with their revenue stream or they believe they will lose more in subs than they will gain in cash shop sales. The latter seems like a safer bet.
I'll also point out that the companies whose games have gone freemium were in all likelihood disappointed in their sub retention numbers.
The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man. -- George Bernard Shaw
What you say is factually wrong. A majority of F2P players do NOT pay. It is well known that a few whales are subsidizing everyone else.
So no .. you won't pay. A few will pay for you.
Because the social engineering (read 'sales push') that has been conducted across the 'independent' gaming sites acorss the gaming internet to make it so the last few years has been gob smackingly effective.
Just goes to show how easily opinions are formed and the drones are led, all the while ending up convinced they wanted it all along and even that it was THEIR idea.
Ofc, everyone so led is convinced they are hugely smart and totally beyond being sold to, having their opinions formed, or indeed incapable of ever being a drone. They are the smartest most free thinking individuals on the planet and impervious to being manipulated.
All the while they are thinking this advertisers, shills, and creative marketing departments the world over laugh their arses off.
To put it quite simply... freemium is the new rage because what you initially pay for is the bulk of what you are getting. What they add later is mere scraps by comparison. So, do the math, you pay $60 for a game that is worth all $60. Everything they add later is total gravy. Then there's the sub-based scenario, where you paid your $60 bucks and got $60 worth but in order to continue playing that game, you have to pay the $15 more each month. During that time, nothing new has been added, thus, you've just paid $75 for a game that only promised you $60 worth of content. As time goes on, you've paid $120 for a game that is essentially no different than they day you bought it. Eventually they throw out a bone and add content, LOL, $15 worth of content compared to the original $60 worth of content. It adds up pretty fast.
Why pay to play a game that is in essence unchanged since it's release? Sounds pretty foolish doesn't it?
MoP may cost $40 at face value, but considering you will be playing it for a good 3 months before any new content is added, that's another $45 on top of the initial investment, making it more expensive than GW2 at initial purchase price. The longer you play MoP, the more money you pay. In GW2, you get new content for free... if it's 3 months or 6 months down the road, it's still free. The only investment you have put into the game since purchase is time. With WoW you've invested both time and money.
Time is money, but our money is our money. You don't offer us real tangible content for our money, you're not going to get our time. Some people prefer to play the lottery and invest in advance to a game in hopes that their time and money has been well invested. If the company folds, you've just kissed your investment goodbye. If it doesn't fold and only offers you mere crumbs for you investment, you've been shafted. Because you've bought into this model, you are stuck feeding it or you have to give up your game. Yes, the game you chose to purchase and play but can no longer play because you have to pay an entry fee now.
Imagine if your OS was marketed that way. Microsoft would love to charge everyone a sub-fee to use their OS. Funny how we would be all up in arms if they ever did that and yet we find comfort in paying a game company for the priviledge to continue playing their game.
The smart consumers are changing their gaming habits. We don't have to pay to play. If they want our money, the better damn well deserve it.