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Economy

EA reveals SWTOR subscription and sales numbers, beats financial predictions [Updated]

Sci-fi, Economy, MMO industry, News items, Star Wars: The Old Republic

Screenshot -- Star Wars: The Old Republic
It looks like Star Wars: The Old Republic didn't let its daddy down, as EA has reported much better sales than expected for the December quarter, largely thanks to the runaway sales of the new MMO title (as well as many of EA's other heavy-hitters). The company ended up earning an adjusted $344 million for a total net loss of $205 million, which isn't too shabby if you consider how much money just went into the development and launch of The Old Republic.

Perhaps most interestingly to players, however, is the fact that EA has reported sales of more than 2 million units of The Old Republic with about 1.7 million subscribers. Those are the highest (and the hardest) numbers we've heard so far. EA's Chief Financial Advisor, Eric Brown, stated in an interview that EA managed to pull in more SWTOR subscribers than the studio had initially anticipated. He added that at launch, the studio was able to add a great number of users per server courtesy of some technical improvements. If you're economically minded and want to get the full, dirty, stock market details, just click past the link below.

[Thanks to Gabriel for the tip!]

[Update: Darth Hater has compiled some additional TOR-related statistics and Q&A from today's EA earnings call: "2,000,000+ copies sold, 40% sold through Origin; 1,700,000+ active subscribers, 1 million concurrent." The company also notes that "Active subscribers means anyone paying OR in their trial period. MOST of those 1.7m are paying at this point."]

RuneScape increasing subscription prices on February 1st

Fantasy, Economy, MMO industry, News items, RuneScape, Free-to-play, Browser

Screenshot -- RuneScape
In a new post on the official RuneScape site, the game's vice president Daniel Clough has announced that, beginning in February, RuneScape membership prices will be rising from $5.95 US per month to $7.95 US per month. If you're already a member, don't worry! Anyone who is a registered member prior to February 1st will still be able to subscribe to the game at the current fee of $5.95 US per month, and the rate will not rise as long as the subscription isn't cancelled. So if you were thinking about shelling out for a RuneScape membership, act before the end of the month in order to lock in the current, lower pricing model. For the full details, click on through the link below to the RuneScape official site.

[Thanks to Sean for the tip!]

The Tattered Notebook: Plat, loot, and the morality of cash

Fantasy, EverQuest II, Economy, Opinion, Free-to-play, The Tattered Notebook

EQII gold
There's a dirty little secret going on in EverQuest II, and every now and then it bubbles up to the surface in forum complaints from players. With the arrival of Station Cash, the Marketplace, and Legends of Norrath cards, players have worked out a way to buy in-game coin with real money, without fear of getting banned. And with the transition to free-to-play, it seems like that practice has grown even more.

The problem is that there are several things that factor into the plat-for-cash scenario, so it's impossible to find a quick fix. Are we at a point that SOE should just put plat on the marketplace and be done with it? Let's look at a few reasons for and against it.

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The Road to Mordor: Convenience, not advantage

Fantasy, Lord of the Rings Online, Business models, Economy, Free-to-play, The Road to Mordor, Crafting

LotRO
Prior to Lord of the Rings Online's free-to-play implementation, players were raising concerns of potential abuse of the F2P model and the LotRO store in particular. The CM at the time, Patience, posted a now-infamous response stated that Turbine was about selling "convenience, not advantage" in the store. I thought it was a terrific stance to take (and still is, for any F2P MMO dabbling in microtransactions). It wasn't long, however, before the thread was purged from the forums entirely, although the playerbase has held on to those three words to this day.

That phrase has echoed in my head over the past week, ever since we heard that statted armor was coming to the in-game store. I've been among those who have championed Turbine's F2P model as the way to do things right -- to offer fluff, a la carte content and convenience without straying into so-called "pay to win" territory that has plagued cheaper games. But now I wonder if the new motto is "convenience and advantage," especially in light of several other questionable store selections that have been pushed through despite player resistance.

But let's concentrate on one topic today, that being the stat armor that's now available in the store. Is this strictly a "convenience" item that is meant to aid struggling lowbies, or does it represent the sale of a clear advantage for those who are OK with letting their money game for them? Are we making a mountain out of a molehill by discussing this, or is it far past time that something like this needs to be brought into the public discourse?

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Electronic Arts stock drops because of SWTOR fumbles

Sci-fi, Economy, MMO industry, News items, Star Wars: The Old Republic

Screenshot -- Star Wars: The Old Republic
Electronic Arts' stock appears to be in a bit of trouble following Star Wars: The Old Republic's launch. The company's shares fell by almost 3% to $17.75 US this morning after a stock analyst working with Brean Murray Carret & Co. "cut his price target on the stock to $22 [US] from $28 [US]." In a note to his clients, analyst Todd Mitchell wrote that he felt some "creeping concerns" regarding The Old Republic's performance so far; he added that "initial sales appear to be below expectations, and casual observation of early play is causing us to rethink our churn assumptions." Now we just get to sit back with some popcorn and see whether BioWare can get its business together in time to make a recovery, so take a seat.

[Thanks to Chum for the tip!]

LotRO reverses policy, plans to sell PvE stat gear through the store [Updated]

Fantasy, Lord of the Rings Online, Business models, Economy, Free-to-play

LotRO
In July 2010, Massively was told by Turbine that the then-coming LotRO store "would not sell any gear with stats attached." And while the studio has so far kept to the letter of the law, it has fudged the spirit of it with the sales of stat tomes (which boost stats independently of gear) and the addition of statted gear to PvMP (monster play).

Consider the law cast aside today, then, as Turbine's announced the coming sale of statted gear in the LotRO store to normal PvE play as well. Light, medium, and heavy armor pieces will soon be available for purchase in the cash shop, and will come with beneficial stats attached. In addition to the typical stats, the store boots will come with a 8% run out-of-combat run speed boost attached.

While the gear in question has reasonable stats, it certainly raises the specter of the game's heading toward pay-to-win territory by having it for sale at all.

Massively has reached out to Turbine for an official comment.

[Update: On the official forums Sapience commented about the sale saying, "It's lower level gear. Many players have given us feedback that there is a sparsity of gear on the AH at these levels and they wanted an alternative. We're trying to accomodate that."]

New WAKFU dev diary highlights player freedom, sandbox features

Fantasy, Video, Economy, Game mechanics, MMO industry, New titles, News items, Free-to-play, Dev Diaries, Sandbox, Crafting

WAKFU gameplay screenshot
If it's true that MMORPGs have become more linear as the genre has grown, it's also true that Ankama is setting out to do something different with WAKFU. The French development firm has released a new video dev diary titled Power to the Player, and it outlines how the free-to-play game is tackling some of the challenges inherent in sandbox design.

"We really wanted to make WAKFU a game based on freedom, a game which puts the player in control," says Ankama designer Azael. "Most current MMOs create a game and then insert the player. With WAKFU we aimed to create the game around the players."

WAKFU features very few NPCs (and no traditional vendor NPCs at all), and it also boasts mobs that don't drop money. Players create the game's currency themselves by harvesting ores and making use of minting machines, and players are also responsible for seeding the world with monsters since they don't respawn on their own. You can learn more about WAKFU by viewing the video after the break.

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Funcom tops Oslo stock exchange, invests heavily in The Secret World

Fantasy, Horror, Age of Conan, Business models, Economy, MMO industry, New titles, News items, Free-to-play, The Secret World

The Secret World - Dude with a big shotgun
Funcom's future is looking pretty bright according to a report at Views and News from Norway. The site says the development firm behind Anarchy Online, Age of Conan, and The Secret World topped the Oslo stock exchange last year and saw its share price rise by 227%.

AoC has "sold well and still generates income for Funcom," says the report, but the real cause for optimism is the positive buzz surrounding The Secret World. Funcom head honcho Trond Arne Aas says that the firm has received "very good feedback" from both testers and journalists, and it's a good thing since the company absorbed a third quarter loss despite its share price increase.

"We're investing heavily in The Secret World now, therefore the loss," Aas explained. "But we're hoping for major income after the launch in April."

SWTOR welcomes Collector's Edition arrivals and suffers credit farmers

Sci-fi, Video, Economy, Launches, Star Wars: The Old Republic

SWTOR
It was the best of times in The Old Republic, it was the worst of times. Even though BioWare's freshman MMO has yet to officially launch, so-called "credit farmers" are already hard at work setting up operations to sell in-game currency via third party sources. Shacknews identified one company, IGXE, as spearheading the assault on SWTOR's economy, although that company certainly is not alone in attempting to bypass the EULA.

On a brighter note, the Collector's Edition of the game has already shipped to many (but not all) customers, and Darth Hater has a massive 20-minute unboxing video to show off all of the physical goodies that come inside. If you're curious or are still waiting for your own CE to arrive, you can view the action-packed video after the jump.

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Behind the Mask: A way to improve microtransaction consumables

Super-hero, Economy, Opinion, Free-to-play, Champions Online, Behind the Mask

A couple of weeks ago, I lamented the existence of grab bags in Champions Online and how they could be made more worthwhile. Although I made quite a few suggestions on what could be changed, the main concern was that the consumables placed in the grab bags were simply not worth anything.

Improving the value of C-Store consumables won't appease the vocal minority whose sense of entitlement tells them that they deserve the ultra-rare grab bag items. These people only see the grab bags as chances for costume unlocks, so making the consumables worth the 80 CP ($1 US) won't matter to them. For the general public, though, making the consumables worth the gamble makes the grab bag items much more desirable.

This week on Behind the Mask, we'll look at the C-Store consumables and weigh in on whether they're worth the money. If they're not, we'll look at what could be done to fix it!

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Vindicia CEO: MMOs are launching with the wrong business model

Business models, Economy, Interviews, MMO industry, News items, Miscellaneous

Money
Chances are you've never heard of Gene Hoffman, CEO of Vindicia (which may or may not ring a bell, either). MMO companies have heard of him, though, as he's something of a veteran when it comes to online content distribution and payment models. His industry experience dates back to the founding of eMusic, a subscription-based digital music retailer that popped up in 1998.

Now he advises companies regarding online business models, distribution, and monetization, and he casts a critical eye on the MMO industry and its slow march toward more flexible payment schemes. "Look, some of these MMOs are launching and they're really bad," he tells GamesIndustry.biz. "You don't want to say that too loudly to them, but seriously, these guys need to do a lot more content before they launch. So why not price it that way?"

Massively Exclusive: The Force ghosts of past, present, and future with SWTOR's James Ohlen [Updated]

Sci-fi, Culture, Economy, Interviews, New titles, PvP, Endgame, PvE, Massively Interviews, Star Wars: The Old Republic, Crafting

Fans have been sitting on pins and needles, waiting for their blessed early access emails for Star Wars: The Old Republic. What can you do while we wait to reserve your character names before the noobie rush on December 20th? You could check out the awesome guide Massively released on Monday to scout out which class you want to play before you play it. You could read the Hyperspace Beacon that came out yesterday; it may take the edge off the anticipation. Or maybe you could have a chat with SWTOR Creative Director James Ohlen about the current state of the game and what's coming down the bend.

We went with the last one.

After the break, find out what Ohlen had to say about SWTOR's legacy system, customizable ships, and other future content.

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Nexon raises $1.17 billion from IPO, stock subsequently drops

Business models, Economy, MMO industry, News items, Free-to-play, Miscellaneous

Nexon logo
Korean online gaming giant Nexon has raised $1.17 billion from its initial public stock offering. The filing stated that Nexon has 1.2 billion registered players, 77 million of which were active as recently as September 2011. CFO Owen Mahoney says the company's expertise made it an attractive proposition for new shareholders. "We can really bring a lot to the table. We know how to tune a game so that people will play it for months on end," he explained.

Nexon's IPO was the largest on the Tokyo Stock Exchange this year, and as a result the company is now valued somewhere between $7.69 billion and $8.97 billion according to GamesIndustry.biz.

Even so, Nexon's stock price slipped by 3.9 percent on its first day of trading.

The Soapbox: On gold-farming and the grind

Fantasy, Sci-fi, Business models, Economy, Game mechanics, MMO industry, Opinion, Free-to-play, The Soapbox

Chest of gold
Disclaimer: The Soapbox column is entirely the opinion of this week's writer and does not necessarily reflect the views of Massively as a whole. If you're afraid of opinions other than your own, you might want to skip this column.

You're no doubt aware of a certain sci-fi MMORPG that's launching this week. As is the case each time a new major title releases, I'm curious to see how (or if) the developers will deal with the inevitable real-money trade.

BioWare has been fairly quiet about gold-farming and the steps it may take to combat it, which isn't too surprising given the unglamorous and often controversial subject matter. Few game devs mention their anti-RMT plans prior to launch, but plenty of dev teams complain about RMT after their game has been released. And yet, the usual solutions to black market currency trading are continuously ineffective at stopping it.

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Blizzard's Battle.net Balance boasts big business

World of Warcraft, Fantasy, Economy

Battle.net
Choo choo -- the Blizzard Micotransactrain is leaving the station! Whether or not you're aboard with Blizzard's increasing fixation on monetizing all aspects of its games, this train is certainly picking up steam. Its next station is called Battle.net Balance, and with it comes a whole new paradigm for the Blizzard empire. (Many apologies for using the word "paradigm.")

In effect, Battle.net Balance is a virtual wallet where players can purchase -- or "charge up" according to Blizzard's parlance -- points to then spend on items and services in World of Warcraft, Diablo III, and elsewhere. Diablo III players who earn Battle.net currency in-game can save those points through the service to spend later. The system can also be used to pay for WoW gametime.

However, the system comes with an important caveat: Once you've converted real-world money into Battle.net Balance, there's no getting it back as cash. So if you've got plans to make a living playing Diablo III, you might want to think again (although "certain regions" will be able to cash out via PayPal).

Battle.net Balance is heading our way in the near future, and if this affects your game, you might be interested to read the informative FAQ that goes into more detail.

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