Business models

Before anyone asks in the comments section: Yes, Istaria is still around. I've noticed that many players seem to think if something is out of their sight, it's out of every other player's mind too, but the truth is that there are many, many smallish and indie MMOs in existence that not only continue to do well but offer unique gameplay for anyone who might be interested. Istaria is even still referred to as Horizons by many, even though that change was made a long, long time ago. Despite all of the outdated opinions and its status as an "older" game, interesting things are happening in the world of Istaria.

I took some time and asked Amarie Ancalimon, Community Relations manager from Virtrium, about the latest string of patches and updates. I got plenty of information back, so let's get to it!

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Wedbush Securities analyst Michael Pachter has a dim view of MMO assets following the lukewarm performance of Star Wars: The Old Republic. "Nobody is buying MMOs after Star Wars fizzled," Pachter told Joystiq. The context surrounding the statement involves the valuation of 38 Studios in the wake of its Copernicus melt-down.

"There is just no demand for game assets right now, as THQ proved when it tried to sell the Warhammer MMO. I think [Electronic Arts] could step in, since they are the publisher, so you might see some alternative way to get 38 some bridge financing," Pachter said.

BioWare doctors Greg Zeschuk and Ray Muzyka have posted a blurb on the official Star Wars: The Old Republic website confirming the downsizing of the game's development team. The update is short on details and long on superlatives relating to the sci-fi MMO's successful launch, so we're not sure who was laid off at this point.

The docs say that it's business as usual going forward for SWTOR and that the game will continue to grow over time. "We still have a very substantial development team working on supporting and growing the game, and we feel we are in a strong position, with your continued involvement and feedback, to continue to build Star Wars: The Old Republic as one of the most compelling and successful online experiences in the world today," the statement reads.

[Update: SWTOR Community Manager Stephen Reid has today changed his LinkedIn page indicating that his tenure with the studio ended in May 2012, suggesting that he might be one of those affected by these layoffs. We'll keep you posted as we learn more.]

Nexon's recent acquisition of Taiwanese publisher Gamania will be scrutinized by the Fair Trade Commission (FTC), according to a report in the Taipei Times. A hostile takeover is alleged, and FTC chairman Wu Shiow-ming said the commission will "ask Nexon to comment on its definition of Gamania's market share, the particular field it defines Gamania as being in, and its current relations with Gamania."

This will help determine whether Nexon has violated the Fair Trade Act, which mandates that any merger involving a company with more than 25% market share in a particular field must be reported to authorities.

Gamania contacted the FTC, ostensibly out of concern for Nexon's impact on the Taiwanese gaming industry. "It would be absolutely detrimental to the development of Taiwan's online gaming industry if a large-scale foreign corporation was allowed to take control of the local industry's operating channels and resources, whether the integration is horizontal or vertical," the company said.

MMOs have to make money; that's a fact of life (and of business) ArenaNet President Mike O'Brien knows quite well. In an interview with VentureBeat, O'Brien explained how the studio is handling the monetization for Guild Wars 2 and blasts RMT companies for their practices.

O'Brien addressed why Guild Wars 2 is being offered not as a straight free-to-play title but as a retail product with an up-front cost. "The answer is we're really focused on creating the highest-quality MMO, not the lowest-cost MMO," he replied. "I think Guild Wars 2 is one of the best values in gaming, period. Where else can you get this many hours of enjoyment, of content, of polish, of replayability, for $60?"

He also took the opportunity to expand upon his own blog post covering microtransactions from a few weeks ago. "Creating a microtransaction system that doesn't upset or alienate your player base is straightforward, once you clearly define what's in-bounds and what's out-of-bounds," O'Brien stated. He says that ArenaNet wants to be "open and honest" with players regarding the in-game store options and promises that these will be "non-essential additions to the game and convenience services" only.

O'Brien also had strong words about the shady practices of RMT companies, practices that ArenaNet is trying to combat by offering its own in-game RMT system. "Where there's a real profit incentive, someone out there in the world will lie, cheat, and steal to make that profit, " he said. "By letting players trade directly with each other, we take the power away from RMT companies and give it to the entire playerbase."

As I mentioned last time, I'm currently test-driving the EU servers. As such, my Age of Conan subscription fee is spoken for, and my US server characters are now relegated to free-to-play status. Since I'm still deciding on an EU main (I just rerolled after getting a PoM to 22), I figured I'd use this week's column to take a quick look at my veteran account through the eyes of a free-to-play customer.

When AoC Unchained debuted last summer, I read the account services matrix like everyone else, but to be frank, I didn't pay it much attention because I'd always been a subscriber. In the back of my mind, I figured that anyone who's halfway serious about Age of Conan would want to sub up, and my experiences this weekend have only reinforced that notion.

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When Lord of the Rings Online first went free-to-play, Turbine put quest zones on sale for a song, and I missed it. There's never been as good a sale since, and I regret being slow on the draw. So I vowed to start watching sales across the F2P games I frequent very carefully. Sparklepony for 10 bucks? Woot. City of Heroes character slots 50% off? Heck yes. It's become a game in and of itself, and sometimes I admit that I plunk down a little money for a sale on something in a game I've drifted away from, knowing I'll use it later (like Guild Wars' storage panels, which I delayed buying for several years until they were half off).

This method had definitely ensured that I save money on stuff I would have bought at full price had I lacked the patience and planning to play the cash-shop sale game. What about you guys? Do you wait for MMO cash-shop sales for the stuff you want to buy, even if that means you must wait to have the latest and greatest power set or inventory slot? Or do you just let your whims dictate your purchases?

Every morning, the Massively bloggers probe the minds of their readers with deep, thought-provoking questions about that most serious of topics: massively online gaming. We crave your opinions, so grab your caffeinated beverage of choice and chime in on today's Daily Grind!

Call them lockboxes, lootboxes, super packs, gift packs, treasure boxes, mystic chests, or Chupacabra's lunchpails, but these virtual boxes of mystery, fame, and fortune are all the rage in MMOs these days. Few studios have resisted the siren's call of such easy money, much to the dismay of many-a-gamer.

The idea is that a game will dish out to players free locked treasure boxes that require purchased keys to open. The allure of the box's mystery prize is often too strong to resist, especially when there's the possibility of a huge reward inside. The result too often is strong buyer's remorse and studio glee.

There's been a lot of conversation around lockboxes here on Massively, so I wanted to dedicate this week's Perfect Ten to dissecting the truth, the whole truth, and nothing but the truth of these items for you.

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MindArk has given new meaning to the term phat lewt with its latest update for Entropia Universe. Players may now acquire one of a thousand Planet Calypso land deeds simply by hunting, mining, or crafting while in game.

Each land deed carries a real-world value of $100 (and deeds are often sold for much more on the open market), according to a MindArk press release. The deeds also provide revenue sharing through the game's citizenship program. Deeds began dropping yesterday, and MindArk says that they will continue to do so throughout 2012.

Planet Calypso is the oldest planetary playfield in Entropia Universe. The game boasts more than one million registered accounts and over $400 million in annual user-to-user transactions.

[Source: MindArk press release]

What a long way EverQuest II's come! If you had said back in 2004 that the game would not only go free-to-play but have microtransactions and emerge largely intact, I probably would have run to get my pitchfork. But here we are in 2012, and EQII's website has a huge green button that says "Play Free" in big letters, with a long list of special deals on station cash and Marketplace items.

In this week's Tattered Notebook, I want to look back at the evolution of EQII to see how it successfully transitioned while gauging where it's headed down the road when it comes to its payment model. The official move to free-to-play might seem like the final hurdle, but I think we still have a few more around the bend.

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Western players gripe about random number generators, especially when it comes to cash shops. Many of us rebel against paying for lockboxes in Star Trek Online, TCG cards in the now-defunct Star Wars Galaxies, and super-packs in City of Heroes because we want to buy a thing, not a chance at a thing.

Apparently, the idea annoys at least one government too. Earlier this week, rumors began swirling that the Japanese government might crack down on social games that employ "konpu gacha" -- essentially a crafting mechanic that requires a succession of lottery-esque random rolls. To gather the random and rare items you need to craft the gizmo you really want, you wind up spending tons of real cash on a bunch of stuff you don't. Sound familiar?

I'm not a fan of legislative meddling in how fools and their money are parted, but I'm still wondering what you all think. Are these kinds of cash-shop tricks fair play, or do you think the genre would be better off without them?

Every morning, the Massively bloggers probe the minds of their readers with deep, thought-provoking questions about that most serious of topics: massively online gaming. We crave your opinions, so grab your caffeinated beverage of choice and chime in on today's Daily Grind!

Free-to-play is generating big bucks for Nexon. Who knew, right? The Korean gaming giant's profitability is profiled in a brief blurb at Gamasutra that focuses on Q1 2012 results.

Nexon exceeded its first-quarter performance projections on the strength of F2P growth in the Korean and Chinese gaming markets. These gains were "slightly offset by an underwhelming performance for its games [in] North America," which was blamed on "certain operational challenges."

Though Nexon's monthly active user count declined from 86.2 million to 82.8 million, its paying user rate increased (from 8.3 to 10.9 percent in year-over-year comparisons).

If it hasn't become clear over the past two and a half years, I really enjoy speculation. I like crazy theories, I like exploring possibilities, I like thought exercises, and so forth. There's some speculation that I find particularly ill-informed or lacking in some fundamental point of logic, but that doesn't mean I don't learn about them first.

Why am I making a point out of this? Because I've developed a theory about the state of City of Heroes, and I want to make it clear before I launch into this somewhat grim theory that I'm basing this entirely on outside observations. I want it to be clear that I could, in fact, be totally wrong, and when I say that City of Heroes nearly committed unintentional suicide a couple of years ago, I don't want that to be seen as some grand behind-the-scenes revelation.

And if it weren't obvious from that line, yes, that's where I'm going. I think Going Rogue nearly gutted City of Heroes and burned the whole game to the ground. And I think everything the game has done since can be directly traced back to that expansion.

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Yesterday we told you about Star Wars: The Old Republic's official 1.3 million subscriber headcount. Electronic Arts has weighed in on the number, with CEO John Riccitello stating that the game's player numbers are "very much in line with our original assumptions."

EA's Frank Gibeau says that TOR's 400,000 subscriber drop from its February peak is a result of casual players deciding not to renew after a billing cycle.

Eurogamer reports that TOR falls within EA's top 10 most profitable franchises but comes up short of the Battlefield, Medal of Honor, The Sims, and Madden franchises. Riccitello also addressed TOR's high profile in both fan and media circles. "So while I understand there's an enormous amount of interest, I don't know that it warrants as much as what we're seeing right now. But we love the franchise, we're going to grow the franchise," he explained.