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Reader Comments (34)

Posted: Jul 6th 2008 6:47PM (Unverified) said

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A flawed launch irrevocably turns public opinion against a new MMO?

AO is still around after 7 years. If your statement was true, it would have been dead long ago. Come to think of it, if your statement were true, WoW wouldn't have been nearly as successful.

The fact that you can see a company's P&L statements doesn't mean that you have any insight whatsoever into how that money is being spent. (AO, Secret World, etc)

-K
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Posted: Jul 7th 2008 2:18AM Mystal said

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The funny thing about all the AoC negativity is that they still have a great chance to make back everything they spent and then some. Let's say that Funcom sees a profit of 10 dollars on each copy sold, plus a 10 dollar profit each month, for each active subscriber. You need a grand total of 2.5 million subscriber months (including the initial sale as one month) to get back in the black. With initial sales estimated at 700k+, even a "hard core" of 200k users could make you profitable in a year.

The way the economics work out, they may be better off with the terrible launch + a lot of hype sales vs a more stable launch that had to compete with WAR and WOW for sales.

Posted: Jul 7th 2008 7:37AM (Unverified) said

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You're likely correct about the economics of the AoC launch. If you had the choice between a smaller profit margin and releasing early or an uncertain profit while launching at the same time WAR and WotLK are released, I'm guessing that most companies will take the sure thing.

If Funcom generates enough good will with their players and demonstrates a willingness to bug-stomp early and often, they can survive a rocky launch well enough to remain profitable in the long term. If they never sell those 700k+ units because everyone is out there playing Warhammer or Lich King, then they don't make any money, regardless of how good their game is.

-K
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Posted: Jul 7th 2008 2:23AM Mystal said

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Incidentally, Kevin, WoW had probably the most stable launch of any major MMO. The server stability issues you linked to happened in mid to late 2006, while WoW was launched in late 2004. They were more a product of explosive user growth following a flat summer than for any technical reason. Very few people had any reason to be turned off to WoW, as it was, even at launch, as stable as any other offering on the market.

Balance wise it had a lot of issues, and the content at release was not robust, but not that many people noticed this until they'd been playing for awhile. The PvP centric play of AoC makes the balance issues a lot more stark than they were for WoW.

Posted: Jul 7th 2008 7:36AM (Unverified) said

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Bunk.

I played during launch. I played during beta (open and closed).

Server queues of 500+, and frequent crashes were the norm back then, and while they sucked, there was a high degree of confidence that Blizz would get it together (and they did).

The difference in this case is that Funcom does not have the same track record of success that Blizzard has. Everyone was quick to draw parallels to the Anarchy Online launch, and while AoC was better by far in terms of stability, like you say, there were issues with parts of the game that didn't get touched much in beta (anything after level 50, large scale pvp, etc.)

-K

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Posted: Jul 7th 2008 10:19AM (Unverified) said

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Your logic is completely flawed.

A game surviving is far different from a game thriving. AO could have enjoyed much higher monthly revenues over the course of it's existence if not for the horrible launch.

You make a big deal about a game being sustainable over time, but then justify an early launch based on short term events like competitive launches.

Lets face it. At least 90% of MMORPG launches have "failed" in the eyes of the community with in a month or two after launch. They may maintain their niche and their most dedicated fans, but most players are ready for the next game to attempt to be "the next big MMORPG" very soon after the latest aspirant falls by the way side.

The only bad launch windows are with in a month of a game perceived to be on par or better than your game, or with in a few months after the release of "the next big game". With the odds of any release being that big game, you have to have a very low opinion of your own product to be worried about the competition.

AoC really needed maybe another year in development. There are plenty of viable launch windows over the next year, even if you decide that there is some serious competition you do not want to face head to head.

If a game is just destined to be a dud, sure, cut your losses and maximize box sales by timing release during a "dead zone". On the other hand, if you have a game that could be great, (AoC definitely has that potential), the premature launch permanently sacrifices long term revenues for earlier box sales.

The difference in sustainable subscription revenues between a rushed game launch and a game launched when it's truly ready can pay for the extra year of development in the first two or three months. From that point on, yearly revenue can be much, much higher than you will ever achieve after a botched launch.

That's why so many long term fans of the genre get so frustrated. Seeing so many games destroy their long term health and success by launching too early. How many times does the same mistake have to be repeated over and over again before someone gets it right?

Posted: Jul 7th 2008 10:30AM (Unverified) said

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A big difference with WoW, aside from Blizzard's reputation, was that you could clearly see that once the nagging launch day bugs were worked out, the game had plenty of content and long term "fun factor".

With AoC, it's not just a lot of bugs that need to be quashed. It's core elements not functioning plus a severe lack of over all game content. AoC really needed to launch with at least twice the zones and land mass and three times as much overall content. The greatly accelerated leveling curve is the direct result of that lack of content. Players demand the ability to level to cap on quests. In order to try to come close to that goal, Funcom had to settle on a leveling curve at least three times faster than desirable.

Will they squash the most serious bugs in the next couple months? One would hope so. However, there is just no way they are going to inject sufficient content into the game quickly enough to save their long term success.

Once a game is under the pressures of a retail environment, the development process greatly slows. What could have taken six months in beta can take eighteen months post launch.

This is another reason why premature launches are never, ever a desirable option.

Posted: Jul 7th 2008 11:26AM (Unverified) said

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This is the part where I wonder if you've ever worked on a commercial software release. You speak of taking an additional year to develop a title (that has already been in the works for 5 years) and ignore the fact that developers cost money. Artists cost money. QA engineers cost money. Marketing costs money. And you think a company can decide to soak up an additional year of those costs with no revenue to show for it? Funcom is not Blizzard, and does not have the revenue streams that Blizzard has from their previous products.

It's not like you can tell a developer "Work for us for another year and we'll make it up to you after the game launches and becomes successful." At some point the suits who run these companies want to see a return on their investment. You can't hold them off forever.

At some point you have to take your chances and release the product. Waiting until the product is "perfect" is not realistic when you have bills to pay.

If Funcom fails with this game, it will be because of the quality of their product. I'll agree with you there. However, after 5 years, adding another year of development time is not an option. (See example: Duke Nukem Forever) The benefits of additional development time are far outweighed by the additional costs of development.

-K


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Posted: Jul 7th 2008 12:45PM (Unverified) said

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By your estimates, the cost of AoC has been about $20 million.

We know from financial filings Funcom has almost $60 million in cash reserves.

The difference between a good game with a solid launch and plenty of content vs. a potentially good game launched very prematurely and lacking content could be the difference between a title with $15 million + in monthly revenue vs. $1.5 million a month!

By your logic, why didn't they just release it a year ago? Well, because it wasn't ready and it's pretty obvious that a game in that state would fail. You don't launch a game until it is ready, unless the finances have completely run dry, or you just want to recoup some losses on an obvious dud.

Scenario 1: MMORPG takes 5 years to develop at a cost of $20 million and goes on to average $1.5 million per month in revenue.

Scenario 2: MMORPG takes 6 years to develop at a cost of $30 and goes on to average $15 million per month in revenue.

Which is better?

Box sales will be at least the same.

In scenario 2 revenues just from two months of subscriptions covers the revenue lost by not launching the unfinished game early. Another month covers the additional development cost. From that point on, revenues are almost as much per month as they would have been for a full year following a botched launch.

If you run out of money and can not secure additional investment, your choices are limited. If your game is never going to be a blockbuster hit, your choices are limited.

If you have the funding and a game with true potential and still launch a year early? Well, that's complete idiocy.

Posted: Jul 7th 2008 2:54PM (Unverified) said

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If I could increase my revenues by 10 times (on average) by spending 10 million dollars on an additional year of development, of course I would.

If you assume that just as many boxes are sold...

If you assume that competition in the marketplace is equally or less intense...

If you assume that additional development costs would only increase by 10 million (50% of the overall dev budget, I'll admit that is a bit high for 1 additional year of development)

If you assume that you can grab the same interest from gamers a year from now that you can get today.


That's an awful lot of assumptions for a 30 million dollar gamble. Even then, would an additional year of development mean that you found all of the bugs that players have found after release? Would you have an accurate assessment of how quickly players would reach end-game content and address the demand correctly? Would features that are considered "state of the art" today (like the combat system, for example) still be product differentiators in 12 month's time?

If one year is good, why not two more? At some point, a decision must be made that a game is "good enough to ship". There is a point of diminishing returns with development time/budget, and a decision must be made as to whether or not a game is "good enough to ship" If you trust your development team and bug-hunters enough to fix the things that *always* crop up after a release, then why wouldn't you ship now when market conditions are favorable?

If you think another year of development would have resulted in a flawless product reaching the market, then you haven't paid attention. There are always flaws. There are always bugs. There are always things that have to be fixed after a release. I will agree with you that some of the issues that have cropped up in AoC should have been showstoppers in QA. I will agree with you that content isn't as fleshed out as we all hoped it would be. I disagree, however, that conditions would be that much more favorable in 12 months, 24 months, or even longer.

-K


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Posted: Jul 7th 2008 9:08PM Mystal said

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"I played during launch. I played during beta (open and closed)."

I also played at launch and experienced virtually no stability or connectivity issues. . Coming from past MMO experiences of UO, SWG, EQ, and AC, I felt like not only was Blizzard's launch much more smoothly executed than the norm, it was in fact in a class by itself.

The queues did stink, but it's not the first time in history that supply of a service didn't match the initial demand. Talk to the people who waited a year or more to obtain a PS-2 or a Wii. If you're going to have a problem at launch I think that's the problem you want to have.

Posted: Jul 7th 2008 10:21PM (Unverified) said

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I think history will support your position. Better to have a polished product and underestimate demand than to be ready for demand and have an unpolished product.

I don't think AoC is as broken as some would say, but I don't expect that game to hit it's stride fully for another couple of months.

As for WoW's launch, I didn't have many other games to compare it to in terms of how the game launched, but I have a few more to compare it to now. WoW wasn't entirely feature complete, and definitely wasn't content complete at launch, but what features and content it did have worked fairly well.

The server stability issues were a clear function of demand, and I don't think anybody saw that kind of demand coming.

-K
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Posted: Jul 8th 2008 10:45AM (Unverified) said

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Developers need to have some firm goals for what needs to be in place before launch. Unfortunately, far to often, those goals are abandoned in favor of an early launch.

Often it's a money issue, where they just can not secure the funding needed to get the game into it's intended form for launch. This is not the case with AoC.

Productivity increases greatly as the project matures and the core of the game and content creation tools are solidified. Experience with in the project also brings about greater efficiencies.

Sure, you have to launch sometime, just not when the game is clearly not ready. AoC was clearly not ready.

Beyond the very obvious lack of needed content to support a healthy leveling curve, there were many core mechanics not even in the game at launch. Stats did nothing. Tests showed that a soldier wearing light armor took almost the same damage as when wearing plate armor. The feat trees are still a complete mess, with many feats either not working or not scaling with additional points invested. There are many more examples, but how could a game ever imagine to launch with such basic, core elements not even functioning?

There is nothing in the financial picture for AoC, nor in the competitive landscape, that justifies such a completely premature launch.

I think you may find your self in a bit of a catch 22 in this debate now. If you have little faith that another year of development time could have lead to a much better product, with the additional time clearly worth the money and effort, then how can you argue that this game, now gone live, will ever be able to fix enough, quickly enough, to overcome it's serious launch state deficiencies?

Posted: Jul 8th 2008 11:18AM (Unverified) said

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Nearly all of the things you describe... Differences in armor types, impact of player stats, scalability of talents are not things that are usually fixed during development. Those are all design elements that need to be tuned and reworked.

That doesn't usually happen until after a game is released. (see example: the numerous tweaks done in each patch from Blizzard)

I'll go ahead and make a prediction.

AoC will lose some subs in the short term, but will improve substantially in the next 6-12 months, after which time they will start a push to get those lost subscribers back into the fold as well as get some new blood in the door.

I further predict that this will happen after the initial release of WAR and after the commotion of the Lich King release subsides. The people that return to AoC will find a stable game with most of the issues that people complain about today resolved. The game will have some new content by then, and should be successful enough to remain a solid #2 or 3 in the MMORPG space for several years to come.

Finally, I predict that AoC will be very profitable for Funcom (if it isn't already...) and will be considered a success by every reasonable criteria, even if it never approaches the subscriber figures of World of Warcraft.

Feel free to disagree if you like. Let's check back here in 12 months and see if I'm right. If I am wrong, I'll send you a case of your favorite beverage (within reason... No Chateau Lafite Rothschild '57 or anything like that).

Cheers

-K
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