While MMO subscription numbers are largely hidden from public eyes, GamesIndustry.biz found a report by Screen Digest that delivered solid figures for the rate of subscription growth and revenue from the Western market. It's a classic case of "good news, bad news" for the industry.
The good news is that MMO subscriptions rose from $1.4 billion in 2008 to $1.6 billion in 2009, a respectable increase, especially when you consider the increase of free-to-play and microtransaction titles. This number is expected to hit the $2 billion mark by 2014. The bad news is that the average revenue per player is down 10% during the same time period due to "the popularity of cheaper premium subscription services." So more people are playing and paying, but they're spending less per person.
The analysis noted that World of Warcraft's domination in the subscription MMO market is slipping, going from 60% to 54% during that time period. Screen Digest says not to count the subscription MMO out, however: "We maintain our view that subscriptions will continue to play an important role in the MMOG sector. Certain consumer groups and types of service are well suited to subscriptions but we also acknowledge the growing success and adoption of microtransaction-based MMOGs as an alternative business model for operators."
Reader Comments (25)
Posted: Sep 24th 2010 1:48PM Qehb said
I personal do not like subscription fees, I dont like being tied to a game every month, I dont particularly like free to play either as you know there will be some cache, I hope Guild Wars buy to play system is more widely used in the future.
Posted: Sep 24th 2010 2:04PM Scuffles said
Yeah I tend to agree that Subscriptions almost make you feel trapped into playing a game and free to play usually degenerates to a point where the CS feels abusive. Don't even get me started on the double dipping.
I too look forward to GW2 with great anticipation.
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I too look forward to GW2 with great anticipation.
Posted: Sep 24th 2010 2:09PM BGExorcist said
I keep wondering myself. If GW did it, now GA does it, how come aeverybody else complains and throws in cash shops as they were candy?
And 1,6 Biliion subs - 1/4 of the human race, are you sure about that?
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And 1,6 Biliion subs - 1/4 of the human race, are you sure about that?
Posted: Sep 24th 2010 2:20PM (Unverified) said
"And 1,6 Biliion subs - 1/4 of the human race, are you sure about that?"
How many of those subs are multiple account holders? A majority of the people I play CoX with have at least two accounts, if not three.... I'd imagine some of those gold sellers out there have a dozen accounts, if not several dozen....
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How many of those subs are multiple account holders? A majority of the people I play CoX with have at least two accounts, if not three.... I'd imagine some of those gold sellers out there have a dozen accounts, if not several dozen....
Posted: Sep 24th 2010 4:28PM (Unverified) said
It should really be an unwritten rule that a trial is offered with any P2P title. Trying before you buy (and subscribe) is hugely important.
I'm somewhat in agreement, being tied down sucks.
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I'm somewhat in agreement, being tied down sucks.
Posted: Sep 24th 2010 2:09PM real65rcncom said
Say it with me people..
"No one can kill WoW but.."
"No one can kill WoW but.."
Posted: Sep 24th 2010 2:11PM BGExorcist said
Maybe their next secret MMO will? The one that wont be set in the WC, SC and Diablo universes.. I remember there were some rumors
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Posted: Sep 24th 2010 3:10PM (Unverified) said
Multiple MMOs in the same market space will continue to chip away at WoW.. There is no single WoW killer.
Death by a thousand cuts.
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Death by a thousand cuts.
Posted: Sep 24th 2010 2:20PM MrDiamondJ said
I'm all for what Guild Wars 2 and Global Agenda are doing, but I don't how their business models can sustain themselves. Once the box/digital sales dry up, how are you going to fund the ongoing effort of keeping the game up and running?
Expansions I guess, but that seems to be pretty risky. If an expansion doesn't sell as well as you'd hoped, you have problems because you don't have that recurring subscription revenue.
Nobody likes subscriptions, but they really are a great business model for a product that requires ongoing maintenance.
Expansions I guess, but that seems to be pretty risky. If an expansion doesn't sell as well as you'd hoped, you have problems because you don't have that recurring subscription revenue.
Nobody likes subscriptions, but they really are a great business model for a product that requires ongoing maintenance.
Posted: Sep 24th 2010 2:29PM Randomessa said
Yes, with expansions (and some in-game micro-transactions), and as for how the games can sustain themselves on that, this is why I don't buy the argument that B2P titles like Guild Wars 1 & 2 don't care about retention.
Of *course* they have to care about retention, because they need people to buy every single subsequent expansion/chapter that comes out. If they were only in for the initial cash grab and don't care if people only stick around for a month, they'd be sunk. They may not mind if people come and go over time, but they have to make the game fun and polished enough that people want to return and continue to buy content.
The same scenario you mentioned can happen with subscription games, too - if the subscription numbers aren't what a game hopes for, the game will cease to generate the kind of revenue it needs, either (see several recent MMO releases over the past 2 years).
So, the motivation for B2P games is *similar* to P2P titles, it's just more an attempt to incentivize returning to the game, rather than incentivizing addiction/continued time spent in the game.
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Of *course* they have to care about retention, because they need people to buy every single subsequent expansion/chapter that comes out. If they were only in for the initial cash grab and don't care if people only stick around for a month, they'd be sunk. They may not mind if people come and go over time, but they have to make the game fun and polished enough that people want to return and continue to buy content.
The same scenario you mentioned can happen with subscription games, too - if the subscription numbers aren't what a game hopes for, the game will cease to generate the kind of revenue it needs, either (see several recent MMO releases over the past 2 years).
So, the motivation for B2P games is *similar* to P2P titles, it's just more an attempt to incentivize returning to the game, rather than incentivizing addiction/continued time spent in the game.
Posted: Sep 24th 2010 2:47PM Goldenspiral said
"Nobody likes subscriptions"
I do. I don't feel locked into playing an MMO @ $15 a month or so (even after paying for the initial box/client). I also don't feel like I have to maximize how many discs I get per month from my Netflix sub. I do what I want and just enjoy the service/game.
I've played sub only games, sub + cash shop, and F2P with cash shop. Overall my experience with subs or subs+ cash shop has been more positive than negative. Maybe its just that my favorite MMOs are sub-based, or maybe I just prefer that model - I'm not sure.
That being said, I get really annoyed with double-dipping.
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I do. I don't feel locked into playing an MMO @ $15 a month or so (even after paying for the initial box/client). I also don't feel like I have to maximize how many discs I get per month from my Netflix sub. I do what I want and just enjoy the service/game.
I've played sub only games, sub + cash shop, and F2P with cash shop. Overall my experience with subs or subs+ cash shop has been more positive than negative. Maybe its just that my favorite MMOs are sub-based, or maybe I just prefer that model - I'm not sure.
That being said, I get really annoyed with double-dipping.
Posted: Sep 24th 2010 7:57PM agitatedandroid said
I keep seeing this comment about how folks can't see how Guild Wars model can sustain the company. Maybe you can't see how it works but it plainly does as Guild Wars launched in 2005. That's five years of Guild Wars and I can't recall ever hearing about them being in financial straits.
While their financial model may be a mystery to you it obviously works if they can afford to keep the game running for five years while developing two expansions to the original (not counting Eye of the North), and developing a pretty well regarded upcoming sequel.
That an MMO requires subscriptions to pay for future development and server costs seems to me to be disproved by Arena Net's continued existence and prosperity.
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While their financial model may be a mystery to you it obviously works if they can afford to keep the game running for five years while developing two expansions to the original (not counting Eye of the North), and developing a pretty well regarded upcoming sequel.
That an MMO requires subscriptions to pay for future development and server costs seems to me to be disproved by Arena Net's continued existence and prosperity.
Posted: Sep 24th 2010 4:01PM Xilithi said
54% of 1.6 is greater than 60% of 1.4 so blizzard lost percent of the market but mow makes more.
Posted: Sep 24th 2010 2:51PM Lateris said
Take that console elitist!!!! Zaaaaappp! :) I have to wonder when the Dems or the Repubs will tax the hell out of this market...
Posted: Sep 24th 2010 3:41PM WriterGuy said
Subscription revenue up more than 14% in one year (from $1.4 to $1.6 billion), and that's while subscriptions got cheaper!
Wouldn't you be happy if your income went up even half as much in a year?
Those who think subs are dead should sneak a peek at this.
Wouldn't you be happy if your income went up even half as much in a year?
Those who think subs are dead should sneak a peek at this.
Posted: Sep 24th 2010 4:19PM Shsks said
Well to be honest, how many subscriptions will be renewed come Cataclysm for WoW?
I agree F2P is the way things are going down now, but when a game gets as big as WoW, it's going to have a few million subscribers left until the plug is pulled.
I agree F2P is the way things are going down now, but when a game gets as big as WoW, it's going to have a few million subscribers left until the plug is pulled.
Posted: Sep 24th 2010 6:19PM (Unverified) said
"I agree F2P is the way things are going down now, but when a game gets as big as WoW, it's going to have a few million subscribers left until the plug is pulled."
The 1st gen of popular MMOs have shown that most successful games will limp along for huge amounts of time past their prime.
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The 1st gen of popular MMOs have shown that most successful games will limp along for huge amounts of time past their prime.
Posted: Sep 24th 2010 6:21PM Higurashi said
I prefer games with subscriptions. I have no problem paying $15 a month for a game I enjoy. I've played lots of F2P games and I'm tired of digging through cash shops for items I may or may not need.
In fact, $15 a month for a game is not bad at all. Hell I ripped through a $50 Gpotato card in one night when I played Flyff.
In fact, $15 a month for a game is not bad at all. Hell I ripped through a $50 Gpotato card in one night when I played Flyff.










