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The right kind of F2P/item shop can work wonders .. business-wise
nariusseldon
Member EpicPosts: 27,775
http://www.gamasutra.com/view/news/27416/Going_Free_Boosts_Turbines_DDO_Revenues_500_Percent.php
2 x subscription rate, 500% increase in revenue. Even when DDO wasn't doing so great .. this is impressive business results (when is the last time you heard a company increases revenue by 500% in 6 months?)
Before the F2P change, i think DDO's sub rate dropped to around 20k. A growth by 500% means that it is taking revenue roughly equivalent to 100k subs. Note that it said sub increases by double .. so it has roughly 40k sub .. and 60k sub equivalent of revenue from its item shop.
Surely 100k sub worth of revenue don't put it anywhere close to the big boys but it is obviously they can survive on .. and there is probably room for growth. A 1M player base won't hurt.
While some here are opposed to item shops, you can deny the business success in DDO's case. May be other F2P games (ALLOD for example) should take a look at how DDO does it and learn something.
Comments
It was a brilliant move on Turbine's part IMO.
I bet many companies will be considering this in the future.
I dont' know about that. Maybe the more greedy item mall game is making alot more money.
Like you said your self, DDO only have 20k sub before the item mall change, so a 500% revenue increase isn't so impressive anyway.
If we assume DDO subscription is 15$ before the item mall change, their only making 15*20k= 300,000 before. That's not alot, consider I know people literally spend 30,000$ a month on item mall game. I myself spend 500$ a month before.
Yeah, but.
Their game is good. It was originally designed for the subscription market standards.
And
Their game IP is the IP for fantasy setting.
Others companies that try to do the same will fail because the aforementioned will be lacking.
Point in case? F2P/item shop is not a good example for other companies.
Points being:
"What is truly revealing is his implication that believing something to be true is the same as it being true. [continue]" -John Oliver
Points being:
Their game is the SAME before and after going F2P (with some minor changes, no doubt). So the 500% increase is purely due to a change of business model, anyway you dice it.
How do you know there aren't other good games not attracting an audience by a sub-model, just like DDO?
That is before. Now they are making $15 x 20 x 5 (500% grow) = $1.5M a month. Their sub doubles .. so that is 15*40k = $600k. So people are spending $700k on their item mall. That is not a bad business.
Plus, how many do you think afford to dump $30k a month on item mall game. I am skeptical since you are the only one who know such people.
^all I'm saying is are you sure DDO is making more money compare to other "more greedy" f2p game?
It's the part where you says other f2p comapny(for exmaple Allods) can learn something from DDO. I don't even think DDO is making more money than other f2p games (for example Allods).
what hte fuck are you spending $30k on?
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^ It's actually 3000, I miscalculated lol.
The guy was spending 100$ a day, so it's 3000$ a month.
Anyway, I'm just pointing out DDO's increase in revenue only means f2p model makes them more money. It don't mean it's actually making more money compare to other f2p games.
$3000 a month, on a 'Free' to Play game...and people wonder why we think cash shops are going to be the death of fair PvP, ruin the games economy and a render the crafting system meaningless.
And I quote from the same article, "The company says that its players transact in the new store at three times the industry average". Three times the average seems like something to learn about.
Plus it DOUBLED its sub based so it won on both ends. Certainly a much better model than just a pure item shop.
Except a lot of these games are NOT pvp focus. So pvp-fairness is irrelevant. Plus, many prob will still choose a free game if it has to be a little unfair to them.
And people playing these games (DDO, ROM or what not) are still engaging in crafting, as well as auction house. So nothing is ruined beyond use. You may think it is meaningless but I am sure those who are doing it feel otherwise. That is why they are customers of DDO & u r not.
Apparently, there are enough of customers for these F2P games out there.
And I quote from the same article, "The company says that its players transact in the new store at three times the industry average". Three times the average seems like something to learn about.
Plus it DOUBLED its sub based so it won on both ends. Certainly a much better model than just a pure item shop.
Tell me the actually revenue in money Turbine and other f2p company is making. That is the only way to compare.
I don't know if Turbine is making relative more money, I doubt they are, but I can't say for sure.
Also can you actually me what's so different between DDO's itemmall compare to others.
Well there are a few conditions for a F2P game to work without disrupting balance or cause shut down:
1. The game should NOT be designed around the use of itemshop.
2. Itemshop should NOT have items that is necessary for a character to progress.
3. Itemshop should have have convenience (teleport scroll, xp boost, etc) and cosmetic items (They gotta make money somehow right?)
4. Itemshop should NOT have excessive "rental" items, any PvP altering items, or any equipments.
5. Nothing should be only available via itemshop or is otherwise nearly impossible to obtain.
6. Allows the trading of itemshop credit and items between players via auction house or any trade function.
I am sure there are more, but this is where I stop since its almost dinner time. Of course the game sure won't make much money in the short term, but #6 more or less allow everyone to obtain the item even without spending real money, so truthfully it can be a bit more flexible on what type of items are in the cashshop at the same time as well.
And I quote from the same article, "The company says that its players transact in the new store at three times the industry average". Three times the average seems like something to learn about.
Plus it DOUBLED its sub based so it won on both ends. Certainly a much better model than just a pure item shop.
Tell me the actually revenue in money Turbine and other f2p company is making. That is the only way to compare.
I don't know if Turbine is making relative more money, I doubt they are, but I can't say for sure.
Also can you actually me what's so different between DDO's itemmall compare to others.
The numbers are all there. 500% increase of revenue. Before it is roughly 20k subs .. so that is $15 x 20 = $300k a month. 500% growth .. so now is roughly 1.5M a month .. that is if the growth stops.
Feature of DDO's business model that i don't find in many other F2P shops:
1) you have the choice to sub or F2P. If you sub, you get enough item shop currency to be competitive. Thus, they CAP your spending.
2) They do not only sell in-game items, but they sell adventure areas .. thus, that is like mini-xpacks. This is not totally new (there are paid d/l-able content on some xbox games too) but NOT the norm for games like ROM.
3) They also sell access to some char classes.
That is a large part of stuff they sell are access to part of the game, not in-game power items. There are some in-game power items (like potions & even armor) which is more or less same as other item shop games.
More importantly, they don't really over-price their stuff like ALLOD did (before gpotato starts to backtrack).
That's "probably" isn't even correct. You forget to account for expense. Revenue = income - expenense.
And there isn't even any proof DDO model is better. Sure they say their transaction is 3 times the industry model. But if they sell adventure area, don't that mean pretty much everyone who play have to pay. Alot of transaction for little money don't mean alot of money.
For other games such as Atlantica Online, for example, alot of people don't pay any money, but they contribute by buying item mall items with in game currency.
There is just no proof that DDO is actually making more money compare to say Atlantica Online(which is the game I'm playing). And the guesstimate revenue you give isn't even accurate.
I don’t think the poster I was referring to was talking about DDO. Can you spend $3000 a month on DDO? DDO has a hybrid revenue model where supposedly you can get everything for the sub, if that is still the case I would not even call it a F2P MMO.
The fact that DDO has a cash shop though should be a concern, if it is not being abused now, it will just be a matter of time before they get round to the xp potions. Tell me the name of one MMO that has had a cash shop for 4+ years and not had the likes of uber health shield potions appear for sale?
But for now I think DDO is doing fine. But all this talk about revenue is of course pointless, it is all corporate confidential, no one really knows.
Scot is right.
And it reinforces my point that it doesnt serve as an example. The whole thread point is destroyed.
The DDO has a cap in money players can spend to acquire power from cash shop. Its 1% of the market.
99% of the other F2P games do not have caps, so the money allowed to be spent, the advantages gotten arent capped into the subscription model price.
Cant distort the truth.
Money always wins out in the end. If you can't spend it in the item mall, then the same people will be buying gold from RMTers. Or dual-boxing (or more than that).
I dunno about DDO, but Lotro is overrun with dual boxers, which at least to me, ruins the game on a lot of different levels. But Turbine even seems to encourage it...
R.I.P. City of Heroes and my 17 characters there
That's "probably" isn't even correct. You forget to account for expense. Revenue = income - expenense.
And there isn't even any proof DDO model is better. Sure they say their transaction is 3 times the industry model. But if they sell adventure area, don't that mean pretty much everyone who play have to pay. Alot of transaction for little money don't mean alot of money.
For other games such as Atlantica Online, for example, alot of people don't pay any money, but they contribute by buying item mall items with in game currency.
There is just no proof that DDO is actually making more money compare to say Atlantica Online(which is the game I'm playing). And the guesstimate revenue you give isn't even accurate.
You FAILED business 101. Revenue = income. PROFIT = revenue - cost. Look it up.