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The free-to-play business model in the MMO industry is one that lets users play a game for free in hopes that a percentage of that userbase will opt to embrace microtransactions, allowing F2P game operators to potentially bring in more revenue per month than they would maintain through subscription fees. We periodically see announcements of yearly revenue from some of the larger companies, but these figures are typically announcements of average revenue per paying user (ARPPU), emphasis on 'paying'. But how much money are free-to-play MMOs really making? This is the subject of an article at Gamasutra written by Paul Hyman titled, 'What Are The Rewards Of 'Free-To-Play' MMOs?"

Hyman catches up with Raph Koster (Metaplace), Daniel James from Three Rings Design (Puzzle Pirates), and Jeremy Liew from Lightspeed Venture Partners (a funding source for F2P MMOs) to discuss the microtransaction model.

Continue reading A closer look at revenues in free-to-play MMOs

MassivelyA closer look at revenues in free-to-play MMOs originally appeared on Massively on Wed, 10 Jun 2009 09:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>arppuarpudaniel-jamesf2pfree-to-playgamasutrainterviewsjeremy-lliewlightspeed-venture-partnersmetaplacemicrotransactionspaul-hymanpuzzle-piratesraph-kosterthree-rings-designvirtual-currencyvirtual-goodsWed, 10 Jun 2009 09:00:00 EST<![CDATA[MapleStory reaps over $29 million in U.S. virtual item sales]]>http://massively.joystiq.com/2008/05/31/maplestory-reaps-over-29-million-in-u-s-virtual-item-sales/http://massively.joystiq.com/2008/05/31/maplestory-reaps-over-29-million-in-u-s-virtual-item-sales/http://massively.joystiq.com/2008/05/31/maplestory-reaps-over-29-million-in-u-s-virtual-item-sales/#commentsFiled under: , , , ,

2007 proved to be a good year for Nexon in the United States, particularly with its free-to-play MapleStory. The Wall Street Journal (subscription required) reports that the although the game has 85 million users worldwide, only 5.9 million of them are U.S. players. Given the relatively small percentage of its player base located in the United States, it's surprising that MapleStory made an absolute killing on in-world transactions in 2007; the WSJ reports that 'Nexon's U.S. revenue last year more than tripled to $29.3 million from $8.5 million the prior year.'

Jeremy Liew provides some additional commentary on the Nexon windfall over at Lightspeed: "With $30m in US sales and 6m US registered users, assuming a 20% "active player" rate and 10% "buyer rate", that implies an ARPU of $20/mth which sounds about right and is consistent with number we've seen from games in Asia. It sounds like the US will be following very similar models of virtual goods monetization that we've seen in Asia." It's interesting that the predominantly Asian business model of legitimized RMT is already gaining some degree of acceptance in the United States, albeit a slow acceptance.

Via PlayNoEvil

MassivelyMapleStory reaps over $29 million in U.S. virtual item sales originally appeared on Massively on Sat, 31 May 2008 15:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economyfree-to-playlightspeedlightspeed-venture-partnersmaple-storymicropaymentmicrotransactionmmo-industrynexonplay-no-evilplaynoevilrevenuermtvirtualvirtual-goodsvirtual-itemSat, 31 May 2008 15:00:00 EST