Imagine a Free World of Warcraft

Once upon a time the folks at Blizzard Entertainment thought they could support the entire world of World of Wacraft by ad revenue. This would have created an MMO experience which would cost you nothing but a bit of annoyance by ad providers; what would the total audience be if the game was free?

Had WoW launched free of charge they would probably have significantly more users playing the game, but the ad revenue from the sheer amount of people would be nothing compared to a monthly charge for eight million subscribers.

Although only a small number of those subscribers are US based, they’re still raking in the cash compared to an ad-based model, even if they were to have triple the subscribers.

However, the Blizzard exec noted: “We didn’t want to charge a subscription, but as we researched market conditions, we realized that wouldn’t support us.”

It’s possible, perhaps, that Blizzard would have fallen under its own weight had they created a world where anyone could play for no charge. Imagine the server utilization, the volume of traffic and the support calls they would get for triple or quadrupal the player base with only ads paying the checks.

Granted, a free system would be excellent in theory, but in practice, making us pay is the only way to throttle our addictions. Sad, but true.

(Thanks, gamasutra)

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Smart Business Choices During Economic DownturnsSmart Business Choices During Economic Downturns

Many game studios are being dropped following a bit of an economic downturn in the United States and globally. Activision has to deal with being agile enough to survive the economic times like anyone else and has dropped a few games that had great potential.

Gamers continue to ask the question, “why?” when some of their highest potential games were dropped to the floor. Ghostbusters and Brütal Legend are a couple examples of games with eager fans already salivating prior to its launch. Some of these fans are a bit ticked off that Activision named them as dropped franchise opportunities.

People ask why a company holds one “mediocre” title while getting rid of other potentially awesome ones. Don’t forget, this is a business and a good studio/publisher is going to make good business decisions without emotional attachments – those that bring emotions into play may end up with a highly valued product (to them) with no additional potential and lower revenue. This isn’t to say developers cannot be passionate about their games and their industry, they just have to build games gamers will buy and continue to fall in love with release after release.

Activision CEO Bobby Kotick is one of these business savvy individuals who knows where investors will find profits for the future, and he also know how to manage employees, with the use of software like this sample pay stub for payments and more.

“[Those games] don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises. … I think, generally, our strategy has been to focus… on the products that have those attributes and characteristics, the products that we know [that] if we release them today, we’ll be working on them 10 years from now.” (1up)

Ghostbusters is a great example of a title which could be well received and fun to play but probably wouldn’t be an exploitable franchise. The game, based on a popular movie, has limited potential for yearly releases and huge franchise success. Ghostbusters fans would probably disagree, but that’s when emotion comes into play. Think dollars and cents, not awesome fun gaming.

Oddly enough many of these business decisions from Activision, Electronic Arts and other big publishers arrive when the economy is in free fall and investors are eying your revenue potential. People make their most important and, usually, unfriendly business decisions when their company is at risk.

It’s sad to think money comes first and entertainment value comes second but we’re not the ones trying to make a profitable living in the industry. Put yourself in Kotick’s shoes as he walks into a board meeting to discuss future plans, road maps and profitability – you’d do what you have to do to keep your job, right?

Diablo 3, Finite Health and Loving ItDiablo 3, Finite Health and Loving It

Diablo 3 Lead Designer Jay Wilson sat down with Multiplayer Blog to explain how the health system works in Diablo 3 and how it differs from Diablo 2. In short, you can’t add a new feature without removing an old one, in this case we’re talking about health potions.

The goal is to broaden the Diablo audience to more than just the hardcore fans. Lets be honest with ourselves, the health potion system was way too far out of control (broken?) By mid-game or earlier, half the character inventory was full of potions and you might have just purchased shares in the potion selling company with all the spending you’ve done there. The health potion system created the infinitely powerful character, in essence, by making them immortal.

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“One of the things that happened in ‘Diablo II’,” Wilson continued, “was the player was faster than most of the monsters and had pretty much infinite health because they would just pop as many potions as they wanted. So when you have a player who has more mobility, more health and endless power, essentially the only thing you can really do to challenge [the players] is to kill them… by just spiking the difficulty.” (multiplayer blog)

Gating the users ability to heal is a classic RPG/Adventure game mechanism for changing the playing field in terms of difficulty. You can make a game with weaker enemies in abundance and still cause you harm, take a look back at Gauntlet in the arcade for an example of this method. You can build challenging enemy styles and dungeon traps to cause the player to mind their step, look at the classic Zelda series and some of their crazy enemies. A great example is the Darknuts from The Legend of Zelda, it was a small knight that could only be attacked from behind but had a sharp little dagger if you bumped them from the front. You had to use tactics to wipe out a full room of Darknuts.

Activision Blizzard will now have the option to create some fancy enemies with challenging special abilities that do not involve insta-kill upon contact battle tactics. You control a super hero character, not an immortal; there should be some challenge besides hacking and slashing through mobs of enemies. Wilson went on to say, “We can make a monster that affects your mobility, we can make a monster that has different kinds of attacks that are dangerous to you and that you actually have to avoid. And so it makes the combat a lot more interesting.”

One of the criticisms to the Diablo franchise has always been the “click fest” of battle. You sit still and click on enemies until everyone is dead. Perhaps, without having infinite potions you’ll be challenged to use your brain on occasion, like a real RPG and have more creative use of your money rather than investing a half-billion into the potion vendors.

Where does that lead the hardcore Diablo fans? Activision Blizzard hopes they’ll see a title with a lot more depth, a new style of challenge and a long term appeal.

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People see facts and figures constantly and brush them off as, well, facts and figures. But, when people see charts and graphs they “oooh” and “aaaah” over them because the visualization is easy to understand. Now, thanks to the NPD Group and Deutsche Bank, people are seeing some pretty graphs about the console battle. These show just how well the race is going on all fronts of the war.

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The Xbox 360 has much to brag about as well, they’re not first in the race but their nearest next-generation graphic console, the PlayStation 3, isn’t even close. The chart shows them both rising in much the same way, with the same “pops” along the sales chart but in a completely different scale. Since Microsoft doesn’t want to consider Wii a competitor, they’re clearly winning the war in their eyes.

Oddly enough, one of the big pops in Xbox 360 sales where around the PS3 launch. Perhaps these consumers were waiting for both consoles to launch before making a decision? More than likely, it was holiday related and had little to do with the PS3 launch but it is fun to ponder anyway.

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Although a few of us expected Sony’s PlayStation 3 to make huge progress this year, each month they have marginal growth is causing their competitors to excel beyond anyones imagination. We’re starting to wonder how well Sony’s “10 year plan” is going to work out with their competitors taking advantage of the market now when, in 10-years, they will be sitting on their pile of cash to re-invest in the 8th generation of consoles.

(Thanks, GameDaily)