Beauty of Micro-transaction MMO’s

Taken from Florensia OnlineThere is room to grow in the world of massive multiplayer online gaming. A large online community should not have to subscribe to a monthly charge to play great MMORPG’s because there are other known models that work, including the micro-transaction based MMO.

At first, this sounds like a dirty word, micro-transaction. Often we relate it with being “nickle and dimed” through a video game by means of dirty marketing which feeds our enthusiastic gamer addiction. Put this thought aside for a minute and keep an open mind.

Imagine a game with worlds the size of World of Warcraft and stories as in-depth as Guild Wars (which is not monthly itself) but free from monthly payments (or “playments” a new term that needs to be coined). The reason behind the monthly charge covers service fees, technical support staff, bandwidth, servers and sheer volume of Activision Blizzards user base.

The micro-transaction concept could still help pay for all the overhead of running an online gaming business because gamers tend to be over-enthusiastic about their great addictive games. If you build a game with excellent content, replay value and strive for a community atmosphere a micro-transaction title can work just as well as a subscription based game.

One beautiful aspect to micro-transaction models is paying for content when you’re willing to pay. This includes cosmetic character alterations, basic needs items (health potions) and other products to enhance the playability of the game without requiring the gamer to do so. There will be some gamers that use this as a “free ride” and never buy anything while other gamers spend way too much because they have expendable income which helps balance out costs.

The trick to a micro-transaction game balance is allowing players to enhance their experience without taking away or crippling their game to force a micro-transaction. You do not need a “fire enchantment” which causes a bit more damage and looks really cool, but it can make your character look more sinister and provide slight benefits to battle.

Wouldn’t this make the rich more powerful than those without a lot of cash? It might might them moderately more powerful and definitely more pretty to look at, but it also allows players who would never be able to experience any of the game a chance to play. In some ways, the level ground is already broken in MMO’s like World of Warcraft based purely on game experience… a player who’s been playing for three years and has a level 70 character will dominate a person with casual gaming habits. Nothing in the world is fair, at least this gives lower level characters a chance to spend some cash to get their character on par when they’ve not got time to work through the game with hours of time investements.

A player that can’t play World of Warcraft but would love to play the hot game is worse off than having battled someone with a better ring, more options and a lightening staff. At least gamers with small budgets can have a massive multiplayer experience without having to foot the bill for a monthly subscription.

There is a time and place for subscription and micro-transaction style games, it might be time to try a micro-transaction system in the United States to help compete against the World of Warcraft addiction. The trick will be to provide users with a great game play experience, higher end graphics, professions, side-quests and storylines with many possibilities.

Try a micro-transaction title today, checkout Florensia Online and Silk Road Online.

0 thoughts on “Beauty of Micro-transaction MMO’s”

  1. sure micro-transactions are fine if the people who spent shit loads only played a bit, but the majority of people who spend real money on in-game items are old people, who are retired or in college and play 24/7. The best type of game is one like Guild wars with no monthly fee and no sale of in-game items, because otherwise old people who shouldn’t be on games just beat all the normal players (people under 18).

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Wallets Shrink, Used Game Market GrowsWallets Shrink, Used Game Market Grows

Over the last year we’ve seen developers scrambling to find “value add” features to new game purchases. Their goal is to convince the customer to buy new instead of used because developers don’t see a penny from a used game sale. While GameStop sees 48% profit margins from the used game market developers struggle to stay floating in the industry.

for-saleThis is not the fault of GameStop and their 48% profit margins because they’re only getting 7% to 20% profit margins (say analysts) on new game sales. As someone that’s run a game store online, if you’re getting 15%+ on a new game you’ve got some great hookups in the distribution channel or are buying in huge quantities.

Buying games in huge quantities to build profit margins can be a huge mistake in this industry. Gamers are fickle little creatures and they’re going to buy their top tier games for a few weeks and then sales will drop significantly. No retail chain wants to purchase a thousand copies of GTA IV (only as an example) and sell seven hundred over the first few week to be stuck holding onto a few hundred copies when the dust settles. Now you’ll have to put them on sale to get them out of the store because the hardcore gamer have already done their shopping and you’re not going to get any price protection if you’re not a major player in the industry.

Why take 7% profit margins when you can get 48% on a used game? The gamers don’t seem to mind because they’ll trade in a used copy of a sports title like Madden to save $5.00 on the latest franchise release. Gamers will buy Fable 2, beat it in a week and rush to the store to get the “most for their dollar” before the game gets stale and buy-back prices drop like a stone. Why not rent Fable 2 and save yourself $50.00? Of course, renting pisses off developers as well because they see no additional revenue.

While the economy struggles and consumers fight for their jobs, the entertainment side of life continues to grow. People would rather “cocoon” in their homes playing video games and watching movies on their brand new HD television because it takes them away from the low points of the economy if only for a few hours. History has shown us trends in entertainment during the down points of economies, it’s natural to want to get away for a bit.

But, consumers want to play these games on the cheap because their job may not be there tomorrow. Saving $5.00 knowing the store just took the title in for half the price doesn’t bother you; $5.00 in your pocket is better than in their pocket right? The fact that they just pocketed upward of 40% on the game doesn’t matter to you — it’s all about your bottom line!

While we’re bargain hunting during the recession developers are going to try and up sell you to a new copy of the game. If that means giving you special game items and features with a “one time code” upon purchase, it will be up to you to decide if it’s valuable. All the while GameStop will lock out the game industry from selling used games because 42% of their overall gross profit is from used game sales.

You, the consumer, benefits from a slightly cheaper game, bargain bin fire sales and additional game features if you do choose to buy new. The economic down turn is a great time to be a gamer, as long as you remain employed.

Episode 299: Here Comes the PS4Episode 299: Here Comes the PS4

This week is heavy on content on the PlayStation 4 unveiling as the next-generation approaches for both Sony and Microsoft – there’s no room for Nintendo in this episode. Nor is there a lot of Reader, er, Listener Feedback, nor any Gaming Flashback.

This week’s major news includes:

  • Sony unveils PS4 at “See the Future”
  • Sony: Pre-owned game blockage “up to publishers” on PS4
  • Fans express outrage at offline/LAN play for console version of Diablo III
  • Rumor: Microsoft revealing next-gen console in April
  • GameSpy, UGO, 1UP say farewell
  • Activision to have “fewer” licensed games out in 2013

The Question of the Week is “What was the first videogame periodical or site you enjoyed?”

Rhythm Gaming Saturation Point?Rhythm Gaming Saturation Point?

Rhythm Gaming is all the rage, or is it? Turns out Guitar Hero: World Tour didn’t meet or exceed the figures they hit with Guitar Hero III. Where GH3 brought in $115 million in the first week, GHWT brought in $67 million in the same time frame.

Why?

There are plenty of factors that could cut down the sales units, considering those that can purchase Guitar Hero World Tour don’t have to purchase additional instruments to play the game like they played GH3.

  • Rock Band 2: This game arrived before Guitar Hero 3 and folks went for this game instead because it was first to launch. Some gamers have to make a choice on which to purchase because they can’t buy both.
  • Hot Games: Although Rhythm gaming can be fun, a lot of great games are arriving this season so gamers have to make some big decisions.
  • Economics: The economy isn’t exactly thriving right now and retail outlets are already predicting less than stellar numbers.
  • Saturation: Since the original Guitar Hero game, we’ve had a number of titles from Activision including their Aerosmith edition and Harmonix pulling out Rock Band and Rock Band 2. There is talk of a Hendrix version and a Metallic release – how much is too much?

We know people love charts, so here is another to toss at you via Kotaku:

Guitar Hero World Tour Sales, via Kotaku

The break down from Guitar Hero 3 to World Tour is obvious, also apparent is the shift in console when buying into the rhythm gaming franchises. The Wii has started taking more market share, odd considering the DLC isn’t there, and the PS3 is showing its lackluster sales of the console by growing in proportion but not excelling to grab huge share (PS3 fanboys attack!). Sony kicked ass by taking control of the share using their PlayStation 2 with Guitar Hero 3, but has lost that lead for the World Tour.

Will these lower sales figure change the future roadmap for Activision in their Guitar Hero franchise or are they satisfied taking home $67 million in the first week of the launch. That is still a lot of money and probably doesn’t even consider any money they could (or will) potentially make on the World Tour hardware.

Luckily, the rhythm gaming content doesn’t get old with age, it just gets more classic. No doubt Guitar Hero World Tour will be landing in homes over the holidays and into 2009.