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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Ensemble Studios Had A MissionEnsemble Studios Had A Mission

In 1995 Ensemble Studios formed as an independent studio and kicked out a little game franchise known as Age of Empires. The title has received many accolades from the first in the franchise extended out to all the Age of Empires releases and spin-offs, all-in-all selling millions of copies.

Ensemble Studios had a mission “to create great games and a great place to work,” says Bruce Shelley from Ensemble Studios. Bruce Shelley also helped design Sid Meier’s Civilization and Railroad Tycoon with MicroProse prior to his work at Ensemble Studios. Now, however, he’s a bit upset at the closing of Ensemble Studios because they were profitable, created top-quality titles and had a great working environment.

Ensemble Studios, from his perspective at least, was a place you’d go to work and be happy with what you’re doing. When you’re working along nicely and become blind-sided by the news, it’s not surprising he didn’t take it lightly.

“Everyone at our studio was shocked, and I think remains very disappointed that this is going to happen. I believe we thought we were immune to shut-down talk because our published games have done so well and have been so profitable. Plus we felt we had built a really stable (low-turnover), talented, hard-working, and creative team, which is not easy to do. We thought we were among the best studios in the world, and that may be true, but we don’t fit in the future plans of MGS as an internal studio so we’re out.” (ensemblestudios.com)

What’s the future plans for Ensemble Studios? As we’ve stated before, they plan to live on in spirit, within the bounds of a new name and a new game plan. “I believe the spirit and mission of ES will be carried forward in this new company if enough of the key leaders agree to take part, which I expect to happen. There has been no announcement about what the new studio will be working on when it gets going,” says Shelley.

This is a horrible way to have to launch a hot new intellectual property. Usually creating a new title with a building fanbase would lead to excitement, parties and high hopes for the future of the franchise. Instead, people will be dusting off their resume in hopes to continue a life of game development.

Hopefully the leaders will indeed form a brand new company and build brand new hot products with their entire staff intact. Then, take their titles to a different publisher (besides Microsoft) and make some money and fans.

Episode 320: Like This Like ThatEpisode 320: Like This Like That

The posting of Monday’s podcast has been delayed a day, sorry about that. This week is fairly long, and the Gaming History gets into the venerable Sega Dreamcast, which still has some developers making new games for it.

Otherwise, this week’s news items include:

  • Assassin’s Creed series will have end, assures Ubisoft
  • EverQuest Next gameplay revealed, accepting beta registration
  • Blizzard confirms Project Titan overhaul, “unlikely to be subscription-based”
  • EA claims freedom of speech in NCAA lawsuit appeal, court rejects it
  • Region-based factions will be in The Crew

This week’s Question of the Week: “What makes you decide to preorder a game or console?”

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?