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Massively http://massively.joystiq.com Massively http://www.blogsmithmedia.com/http://massively.joystiq.com/media/feedlogo.gif Massively http://massively.joystiq.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Report: 64% of Chinese gamers spend money on online games]]>http://massively.joystiq.com/2012/04/03/report-64-of-chinese-gamers-spend-money-on-online-games/http://massively.joystiq.com/2012/04/03/report-64-of-chinese-gamers-spend-money-on-online-games/http://massively.joystiq.com/2012/04/03/report-64-of-chinese-gamers-spend-money-on-online-games/#commentsFiled under: Economy, MMO industry, Free-to-play, Miscellaneous

Chinese gamer

Gaming in China is serious business, especially once you consider that a strong majority of players dish out money to support their habit every month. Analyst group Niko Partners polled 500 Chinese gamers and found that 64% of them dropped money on online titles monthly, including many free-to-play and MMO games. Considering that China has 180 million players and a $5.8 billion gaming market, the country continues to be watched closely as a major economic force in the online realm.

And while MMOs still account for a good portion of the income, they've lost some ground to other types of games, according to Niko Partners Managing Partner Lisa Cosmas Hanson. "Online games revenues are now more distributed among various platforms and genres than they have been in past years, when MMORPGs compiled the vast majority of domestic revenue," she said.

Other interesting details from this report include the news that players are spending less time per week on games and that one in 10 players in the country is over 40 years of age.

Report: 64% of Chinese gamers spend money on online games originally appeared on Massively on Tue, 03 Apr 2012 16:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>analystanalyst-groupanalystschinachinesechinese-gamerchinese-gamersf2pfree-to-playLisa-Cosmas-Hansonmoneynikoniko-partnersonline-spendingreportrevenuespendingTue, 03 Apr 2012 16:00:00 EST<![CDATA[ChangYou reports record profits for the year]]>http://massively.joystiq.com/2012/02/06/changyou-reports-record-profits-for-the-year/http://massively.joystiq.com/2012/02/06/changyou-reports-record-profits-for-the-year/http://massively.joystiq.com/2012/02/06/changyou-reports-record-profits-for-the-year/#commentsFiled under: MMO industry, News items, Free-to-play, Miscellaneous

Don't chang us, we'll chang you?

If you live in China and play online, you know the name ChangYou. The company is a bit less well-known over in the US, but it's still made a name for itself with quirky titles like Zentia and Duke of Mount Deer. It's also apparently making a massive amount of money. According to the company's fourth quarter financial report, ChangYou wound up with a total gross revenue of $435.5 million, with profits surging to $248 million.

CEO Tao Wang says the company can thank a variety of games for its success -- the aforementioned Duke of Mount Deer, an expansion for Tian Long Ba Bu, and the browser-based DDTank. The success of the company in the online market is just part of the ever-expanding Chinese marketplace, which generated over $5 billion dollars last year alone. That's good news for ChangYou and its fans, since the company will enter the next year with plenty of money to generate more games.

ChangYou reports record profits for the year originally appeared on Massively on Mon, 06 Feb 2012 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>businessbusiness-informationchangyouddtankduke-of-mount-deerindustrymmo-industryprofitsrevenuetao-wangtian-long-ba-buzentiaMon, 06 Feb 2012 18:00:00 EST<![CDATA['Staunchly British' Jagex sets the record straight about its new ownership]]>http://massively.joystiq.com/2012/01/12/staunchly-british-jagex-sets-the-record-straight-about-its-new/http://massively.joystiq.com/2012/01/12/staunchly-british-jagex-sets-the-record-straight-about-its-new/http://massively.joystiq.com/2012/01/12/staunchly-british-jagex-sets-the-record-straight-about-its-new/#commentsFiled under: Fantasy, Sci-fi, Interviews, MMO industry, RuneScape, Free-to-play, Stellar Dawn, Transformers Universe

Jagex studios

Jagex doesn't take kindly to being called an American company these days, it appears. In an interview with GamesIndustry.biz, CEO Mark Gerhard set the record straight about the recently reported deal that put the British game studio under the purview of an American investment firm.

Because the deal was made earlier last year, Gerhard sees this as old news and stressed that the company was trucking on much the same as it ever was. "The insinuation that this is a company that somehow now is run by bankers in the US again couldn't be further from the truth," he said. "Sure we therefore have some American shareholders, but the management and the culture and the ethos and everything else is the same people, in the same hands, and staunchly British."

He also clarified why the studio's profits were reported to be down: "If you look at our company's house filings, revenues are up but profits are down, and those aren't because we're doing a crap job, that's because we're consciously taking those profits and ploughing them back into the business."

Gerhard said that the company was "very, very selective" when it came to investors, and that it feels completely comfortable with the current board of directors. He said that the new investors were not interfering with the day-to-day development and operations of Jagex's ever-expanding library of titles: "I'm very excited for the year ahead and everyone in the studio is very focused on, not just making RuneScape and 8Realms a financial success, but our work on Stellar Dawn and even Transformers coming together to make truly great games for this year."

'Staunchly British' Jagex sets the record straight about its new ownership originally appeared on Massively on Thu, 12 Jan 2012 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>8realmsboard-of-directorsbritishdealinsight-venture-partnersinterviewjagexMark-Gerhardpip-pip-cheerioprofitprofitsrevenuerunescapeshareholdersstellar-dawntransformers-universeThu, 12 Jan 2012 10:00:00 EST<![CDATA[God save the green: Deal makes Jagex a US company]]>http://massively.joystiq.com/2012/01/09/god-save-the-green-deal-makes-jagex-a-us-company/http://massively.joystiq.com/2012/01/09/god-save-the-green-deal-makes-jagex-a-us-company/http://massively.joystiq.com/2012/01/09/god-save-the-green-deal-makes-jagex-a-us-company/#commentsFiled under: MMO industry, RuneScape, Free-to-play, Legal, Miscellaneous, Transformers Universe

Jagex

Jagex is trading up the Union Jack for the Stars and Stripes, as controlling interest in the studio has changed hands to a US firm.

Insight Venture Partners, a venture capital firm from the US, completed a deal last year to increase its ownership to 55% of the UK-based company. Previously, the firm had 35% interest in Jagex. Now that the scales have tipped to the new ownership, this technically makes Jagex a US-controlled company and has US investors leading its board of directors.

While revenues were up 2% for Jagex in 2011, both operating and net profits were significantly down from the previous financial year. Jagex is a major player in the MMO free-to-play market, with RuneScape, Transformers Universe, and 8Realms as part of its project portfilio.

Develop reports that the controlling interest was made possible by Jagex co-founder Andrew Gower selling off his ownership claims to the firm for $115.65 million. As part of the deal, Jagex paid $3.85 million in expenses. The studio will remain in Cambridge while its controlling firm is in NYC.

God save the green: Deal makes Jagex a US company originally appeared on Massively on Mon, 09 Jan 2012 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>8realmsandrew-gowerboard-of-directorsbreakingcontrolling-interestdealinsight-venture-brothersinvestorsjagexjagex-game-studiosprofitprofitsrevenuerevenuesrunescapetakeovertransformers-universeukusMon, 09 Jan 2012 12:00:00 EST<![CDATA['Little risk of failure': Analysts predict SWTOR will turn a healthy profit]]>http://massively.joystiq.com/2011/12/01/little-risk-of-failure-analysts-predict-swtor-will-turn-a-hea/http://massively.joystiq.com/2011/12/01/little-risk-of-failure-analysts-predict-swtor-will-turn-a-hea/http://massively.joystiq.com/2011/12/01/little-risk-of-failure-analysts-predict-swtor-will-turn-a-hea/#commentsFiled under: Sci-fi, MMO industry, Star Wars: The Old Republic

SWTOR

Worried that Bobby Kotick has the right of things and that Star Wars: The Old Republic won't make bank for Electronic Arts? Market analyst Michael Pachter disagrees, saying that he not only predicts that EA will cover the costs of SWTOR's development, but come out just fine even with LucasArts taking its share.

Pachter says that LucasArts will claim 35% of SWTOR's revenue: "The revenue split is around 35 percent to LucasArts after EA earns back their investment. That means EA keeps most of the revenue from disc sales (they have marketing expenses and need to staff up the server farms), so they should earn a nice profit there. Keep in mind that EA expensed the development cost when incurred, so much of the disc sales revenue will be profit."

Pachter's predictions for the title are sizable yet reasonable; he thinks that SWTOR will get 1.5 million subscribers. This translates to $270 million per year in revenue, $80 million of which will be pure profit for EA after LucasArts and operating costs take their share. Even if SWTOR only draws in -- or sustains -- merely 500,000 subscribers, Pachter says the game will be sitting pretty.

Other market analysts, such as EEDAR VP Jesse Divnich, support the notion of SWTOR's profitability. "Based upon user commentary and consumer surveys, the profit potential for The Old Republic is high. We see little risk of failure for The Old Republic," Divnich stated.

'Little risk of failure': Analysts predict SWTOR will turn a healthy profit originally appeared on Massively on Thu, 01 Dec 2011 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>biowarebobby-kotickeaea-biowareEEDARelectronic-artsJesse-Divnichlalucasartsmarket-analysisMichael-Pachterprofitrevenuestar-wars-the-old-republicswtorThu, 01 Dec 2011 10:30:00 EST<![CDATA[Perfect World explains third quarter financial performance]]>http://massively.joystiq.com/2011/11/22/perfect-world-explains-third-quarter-financial-performance/http://massively.joystiq.com/2011/11/22/perfect-world-explains-third-quarter-financial-performance/http://massively.joystiq.com/2011/11/22/perfect-world-explains-third-quarter-financial-performance/#commentsFiled under: Fantasy, Business models, MMO industry, News items, Free-to-play, Miscellaneous

It looks like Cryptic Studios is in stable financial hands according to a news blurb at Gamasutra. Parent company Perfect World Entertainment saw a rise in third quarter revenue compared to the same period last year.

However, GamesIndustry.biz reports that PWE's net profits declined during the same period, primarily due to the Cryptic acquisition and the decision to temper in-game monetization activities in certain titles.

"While focusing on further enhancing the content of our portfolio is necessary for our healthy long-term growth, this decision did slow our revenues for the third quarter on a sequential basis. But our third quarter results still represent solid year-over-year revenue growth of 22.4 percent," explained chairman and CEO Michael Chi.

Perfect World explains third quarter financial performance originally appeared on Massively on Tue, 22 Nov 2011 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>crypticcryptic-studiosf2pfinancial-reportfree-to-playmmo-industryperfect-world-entertainmentprofitspwerevenueTue, 22 Nov 2011 11:00:00 EST<![CDATA[World of Warcraft is doing quite well in China, thank you very much]]>http://massively.joystiq.com/2011/11/17/world-of-warcraft-is-doing-quite-well-in-china-thank-you-very-m/http://massively.joystiq.com/2011/11/17/world-of-warcraft-is-doing-quite-well-in-china-thank-you-very-m/http://massively.joystiq.com/2011/11/17/world-of-warcraft-is-doing-quite-well-in-china-thank-you-very-m/#commentsFiled under: World of Warcraft, Fantasy, Economy, MMO industry

WoW

Earlier this month we heard the news that World of Warcraft's subscriber base took yet another substantial hit, although Blizzard was quick to say that most of these losses were coming from eastern countries like China. It's odd then that we've just received word that World of Warcraft is on the rise in China following an extremely profitable third quarter.

NetEase, which operates World of Warcraft in the region, announced that its Q3 earnings were actually up over the same time last year. Both revenues and profits for WoW in China are on the upswing, marking a 39.8% increase year-over-year. NetEase said that it pulled in $308.3 million in revenues, out of which $128.2 million is pure profit.

Subscriber hit or no, WoW continues to be a major force in the Asian market, and with numbers like these it's hard to imagine it going away any time soon.

World of Warcraft is doing quite well in China, thank you very much originally appeared on Massively on Thu, 17 Nov 2011 08:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>activision-blizzardblizzardchinafinancial-reportlossesneteaseprofitq3revenuesubscribersworld-of-warcraftwowThu, 17 Nov 2011 08:30:00 EST<![CDATA[Free-to-play spending poised to become the majority in the US]]>http://massively.joystiq.com/2011/11/09/free-to-play-spending-poised-to-become-the-majority-in-the-us/http://massively.joystiq.com/2011/11/09/free-to-play-spending-poised-to-become-the-majority-in-the-us/http://massively.joystiq.com/2011/11/09/free-to-play-spending-poised-to-become-the-majority-in-the-us/#commentsFiled under: Business models, MMO industry, Miscellaneous

City of Heroes

Free-to-play is on the rise -- we all knew that, but perhaps we didn't quite grasp how much it's gone up. Gamasutra reports that online players have boosted their F2P spending a whopping 24% this year over last, with F2P revenues cornering 47% -- versus 39% in 2010 -- of the MMO market in the US.

Analysts predict that we're on track to see $1.2 billion spent on free-to-play MMOs in 2011. This surge of F2P spending isn't just confined to North America, however. Europe, Asia, and other emerging countries already see a majority of MMO spending dedicated to F2P versus other business models.

The report states that US players spend 26 million hours daily in MMOs. Your average US player is 84% likely to be enjoying browser-based titles and 50% likely to be invested in a client-based game.

NewZoo CEO Peter Warman thinks 2012 will be a decisive year for F2P in more ways than one: "Recent lay-offs and the sudden death of LEGO Universe are serious warnings for the MMO games industry. Success will also strongly depend on how MMO companies extend their unique gameplay and IP across other game platforms, specifically mobile."

Free-to-play spending poised to become the majority in the US originally appeared on Massively on Wed, 09 Nov 2011 11:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>business-modelbusiness-modelsf2pfree-to-playgamasutralego-universenewzoonorth-americaPeter-WarmanrevenuespendingusWed, 09 Nov 2011 11:30:00 EST<![CDATA[Zynga reports record revenue in last quarter]]>http://massively.joystiq.com/2011/11/04/zynga-reports-record-revenue-in-last-quarter/http://massively.joystiq.com/2011/11/04/zynga-reports-record-revenue-in-last-quarter/http://massively.joystiq.com/2011/11/04/zynga-reports-record-revenue-in-last-quarter/#commentsFiled under: Economy, MMO industry, News items, Miscellaneous

A recent SEC filing from Zynga, creator of the social gaming epidemic known as FarmVille, revealed that the company is reporting a record quarterly revenue of over 306 million USD, though -- bizarrely enough -- profits are almost 54 percent lower than they were this time last year.

Revenue isn't the only thing that's on the rise, either. The company reports 152 million unique monthly players, compared to the 151 million the company reported in June. The average number of daily players, however, dropped from 59 million to 54 million. At any rate, the company seems to be going strong, with new titles such as the recently announced (supposed MMO) CastleVille just on the horizon.

Zynga reports record revenue in last quarter originally appeared on Massively on Fri, 04 Nov 2011 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>castlevilleearningseconomyfacebook-gamesfacebook-gamingfarmvillefinancefinancesprofitsrevenuesocial-gamessocial-gamingzyngaFri, 04 Nov 2011 17:00:00 EST<![CDATA[ChangYou reports record revenue, registered accounts]]>http://massively.joystiq.com/2011/10/31/changyou-reports-record-revenue-registered-accounts/http://massively.joystiq.com/2011/10/31/changyou-reports-record-revenue-registered-accounts/http://massively.joystiq.com/2011/10/31/changyou-reports-record-revenue-registered-accounts/#commentsFiled under: Economy, MMO industry, News items, Miscellaneous

With all the layoffs that seem to be going around the MMO industry as of late, it's about time we hear some good news from a developer. ChangYou, known in North America primarily for its quirky title Zentia and the bizarrely named Duke of Mount Deer, reports a 119 million USD revenue for its third fiscal quarter.

The company's amount of registered users rose as well, with the company citing 159 million current gamers inhabiting ChangYou's titles. CEO Tao Wang is understandably pleased with these results and says that "we believe these results once again demonstrate our ability to understand and fulfill gamers' needs and showcase our content development and game operation strengths." For the full details, check out the article over at Gamasutra.

ChangYou reports record revenue, registered accounts originally appeared on Massively on Mon, 31 Oct 2011 19:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>changyouduke-of-mount-deereconomicseconomyf2pfinancefree-to-playmiscmiscellaneousprofitsregistered-usersrevenuesuccesstao-wanguserszentiaMon, 31 Oct 2011 19:00:00 EST<![CDATA[MMO subscription dollars in decline for the first time since 2002]]>http://massively.joystiq.com/2011/09/15/mmo-subscription-dollars-in-decline-for-the-first-time-since-200/http://massively.joystiq.com/2011/09/15/mmo-subscription-dollars-in-decline-for-the-first-time-since-200/http://massively.joystiq.com/2011/09/15/mmo-subscription-dollars-in-decline-for-the-first-time-since-200/#commentsFiled under: Economy, MMO industry, Miscellaneous

Money and lots of it

With all of the free-to-play MMOs coming onto the market and the F2P conversion of formerly subscription-only titles, it should come as no surprise that the subscription model is losing its grip on the industry. Eurogamer reports that starting in 2010, the money brought in from MMO subscriptions has actually gone into decline for the first time ever since analysts began tracking it in 2002.

2010's subscription revenue added up to $1.58 billion, a respectable amount but still 5% less than 2009. 2009 saw a 10% bump in subscriptions, and 2008 witnessed 21.6% growth. Connect the dots, and subscription revenue has most likely peaked and begun a downhill slide. Analysts predict that by 2015, revenue from subs will be as low as $1.33 billion. However, with the popularity of RIFT this year and the coming storm of Star Wars: The Old Republic, the subscription model may see a resurgence.

On the flip side, microtransactions from F2P models are rising exponentially, jumping 24% from 2009 to 2010 to account for $1.13 billion. With the two models combined, the industry saw a very modest 5% increase last year in revenue.

Screen Digest analyst Piers Harding-Rolls sees the writing on the wall: "The focus of many PC game operators has clearly shifted to micro-transaction‐based models -- in part due to competition in the subscription market especially in the high‐end MMOG segment, but also because of the flexibility micro-transactions offer operators in monetising gamers."

MMO subscription dollars in decline for the first time since 2002 originally appeared on Massively on Thu, 15 Sep 2011 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>2002200820092010analysisanalysteconomyeurogamerf2pfree-to-playmicrotransactionsPiers-Harding-Rollsprofitrevenueriftscreen-digeststar-wars-the-old-republicsubsubssubscriptionsubscriptionsswtorthe-old-republictorThu, 15 Sep 2011 12:30:00 EST<![CDATA[Age of Conan: Unchained conquers 300,000 new players, doubles revenue in a month]]>http://massively.joystiq.com/2011/08/11/age-of-conan-unchained-conquers-300-000-new-players-doubles-re/http://massively.joystiq.com/2011/08/11/age-of-conan-unchained-conquers-300-000-new-players-doubles-re/http://massively.joystiq.com/2011/08/11/age-of-conan-unchained-conquers-300-000-new-players-doubles-re/#commentsFiled under: Fantasy, Age of Conan, Business models, MMO industry, Patches, Free-to-play

Age of Conan

The secret is out and the jig is up: MMO studios have solid evidence that adding a free-to-play option on top of a subscription model is the way to bring in hordes of new players. Age of Conan: Unchained proved this today as Funcom announced the addition of over 300,000 players to its bloody family in the first month of service.

Apparently the servers are packed full and Funcom is raking in the moolah, too. The studio announced that servers have quadrupled activity during this time period, and revenues have more then doubled. This is certainly good news for the 2008 title, which is now being supported by a mix of subscription and cash shop options.

Funcom CEO Trond Arne Aas is pleased as (a) punch: "The launch of the hybrid business model has been very successful so far. The activity levels on the servers are booming with a fourfold increase in players during July, we more than doubled the revenue generated from the game, and we have experienced a positive development in subscriber numbers. This definitely gives us great hope for the game's future."

Age of Conan is set to release a movie tie-in update later this month called Savage Coast of Turan to take advantage of the Conan the Barbarian movie coming to theaters on the 18th.

Age of Conan: Unchained conquers 300,000 new players, doubles revenue in a month originally appeared on Massively on Thu, 11 Aug 2011 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>adventure-package-of-conanage-of-conan-unchainedaocconanconan-the-barbariancraig-morrisonf2pfree-to-playfuncommovie-tie-innew-playersrevenuesavage-coast-of-turansubscriber-numberssubscriberstrond-arne-aasunchainedThu, 11 Aug 2011 09:00:00 EST<![CDATA[ChangYou reports impressive profit and revenue gains]]>http://massively.joystiq.com/2011/08/02/changyou-reports-impressive-profit-and-revenue-gains/http://massively.joystiq.com/2011/08/02/changyou-reports-impressive-profit-and-revenue-gains/http://massively.joystiq.com/2011/08/02/changyou-reports-impressive-profit-and-revenue-gains/#commentsFiled under: Fantasy, Business models, MMO industry, News items, Free-to-play, Browser

It's been a great year for ChangYou, and the Chinese developer responsible for Tian Long Ba Bu and Duke of Mount Deer recently reported its fifth consecutive double digit growth quarter.

Tian Long Ba Bu has seen two successful expansion packs thus far in 2011, with a third scheduled for September. According to Gamasutra, Duke of Mount Deer recently increased its server headcount to 110 (up from 64), and the success of both titles powered ChangYou's $54.2 million profit as well as a 35.1 percent revenue jump over the previous year.

ChangYou also bought into a browser-game specialist called 7Road last spring with the intention of expanding its interests beyond traditional MMORPGs. All told, Gamasutra says that ChangYou contributed an impressive $327 million in revenue to a $5 billion Chinese game market.

ChangYou reports impressive profit and revenue gains originally appeared on Massively on Tue, 02 Aug 2011 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>7-road7roadbrowser-basedbrowser-gameschang-youchangyouduke-of-mount-deerf2pfantasyfinancefinancesfinancial-reportfree-to-playmmo-industryprofitrevenuetian-long-ba-buTue, 02 Aug 2011 10:00:00 EST<![CDATA[NCsoft's Lineage enjoys record year, Aion growth boosts total revenue]]>http://massively.joystiq.com/2011/02/11/ncsofts-lineage-enjoys-record-year-aion-growth-boosts-total-re/http://massively.joystiq.com/2011/02/11/ncsofts-lineage-enjoys-record-year-aion-growth-boosts-total-re/http://massively.joystiq.com/2011/02/11/ncsofts-lineage-enjoys-record-year-aion-growth-boosts-total-re/#commentsFiled under: Fantasy, Aion, Lineage, Lineage 2, Business models, Economy, MMO industry, News items

It's been an up and down year for NCsoft, literally. GamesIndustry.biz writes that the Korean MMO titan has reported increases in both its sales and operating profits but a drop in net income in the recently concluded fiscal 2010 period. Surprisingly, the company's total revenue was up two percent due to unprecedented sales of the 12-year-old Lineage MMORPG.

Much to the chagrin of fail-trolls across the internet, NCsoft has also publicized the fact that Aion continues to be a financial success after "recording consecutive growth for the last three years." Taken together, NCsoft's big three (Lineage, Lineage 2, and Aion) have now accounted for $2.7 billion in lifetime sales.

NCsoft's largest success came courtesy of the booming Korean market (which represented a $370 million cut of its $576 million total revenue). Next up was the Japanese market at $70 million, followed by North America at $43.4 million and Europe at $30.1 million.

NCsoft's Lineage enjoys record year, Aion growth boosts total revenue originally appeared on Massively on Fri, 11 Feb 2011 19:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>businessbut-aion-is-failingfiscal-2010fiscal-yearGamesindustry.bizlineagelineage-2lineage-iimmo-industryncsoftnet-incomeprofitsrevenueFri, 11 Feb 2011 19:00:00 EST<![CDATA[The state of the subscription MMO: Revenues up, WoW's stranglehold slipping]]>http://massively.joystiq.com/2010/09/24/the-state-of-the-subscription-mmo-revenues-up-wows-strangehol/http://massively.joystiq.com/2010/09/24/the-state-of-the-subscription-mmo-revenues-up-wows-strangehol/http://massively.joystiq.com/2010/09/24/the-state-of-the-subscription-mmo-revenues-up-wows-strangehol/#commentsFiled under: World of Warcraft, Business models, MMO industry

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."

The state of the subscription MMO: Revenues up, WoW's stranglehold slipping originally appeared on Massively on Fri, 24 Sep 2010 13:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>f2pfinancialfree-to-playGamesindustry.bizMicrotransactionsmmo-industryrevenuescreen-digestsubscriptionsubscription-numberssubscriptionsthe-monkeys-represent-market-growthworld-of-warcraftFri, 24 Sep 2010 13:30:00 EST<![CDATA[MMO market predicted to swell to $8 billion]]>http://massively.joystiq.com/2010/08/11/mmo-market-predicted-to-swell-to-8-billion/http://massively.joystiq.com/2010/08/11/mmo-market-predicted-to-swell-to-8-billion/http://massively.joystiq.com/2010/08/11/mmo-market-predicted-to-swell-to-8-billion/#commentsFiled under: Business models, MMO industry, News items

No matter how many different games you play, follow, or even care about, the fate of the bigger MMO industry affects them all. Every game, from World of Warcraft to Fantasy Earth Zero, is playing in the same sandbox. But for our favorite genre, it looks like the size of that sandbox is only trending upward. Gamasutra reported recently on a new study that predicts the global MMORPG market will reach a total of $8 billion in worth by the end of 2010, a significant increase from the $5 billion in 2009.

So what's spurring the increase? According to the study, the growth in the Western market has been slow but steady, while the Eastern market has been making great strides, led by companies such as Nexon and NCsoft. The study also predicts that the traditional subscription-based revenue model is losing steam as an aggregate, citing it as one of the causes behind the slower growth in the Western side of the industry. Free-to-play isn't everyone's cup of tea, but considering what it seems to be doing to the economic side of our hobby, it's certainly not going anywhere soon.

MMO market predicted to swell to $8 billion originally appeared on Massively on Wed, 11 Aug 2010 20:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businessbusiness-modelseconomicsf2pfree-to-playglobal-economicsglobal-worthindustrymmo-industrynet-worthrevenueworthWed, 11 Aug 2010 20:00:00 EST<![CDATA[RuneScape sees heavy profits for 2009]]>http://massively.joystiq.com/2010/04/15/runescape-sees-heavy-profits-for-2009/http://massively.joystiq.com/2010/04/15/runescape-sees-heavy-profits-for-2009/http://massively.joystiq.com/2010/04/15/runescape-sees-heavy-profits-for-2009/#commentsFiled under: Fantasy, MMO industry, News items, RuneScape, Free-to-play

Jagex, the company behind long-running MMO RuneScape, is seeing happy faces all around these days. To absolutely nobody's surprise, profits from past years have seen a sharp rise and the latest round of numbers is no exception.

RuneScape has been a growing success for Jagex, and Gamesbrief recently took a look at the company's profits for March 2008 - March 2009: "UK studio Jagex [...] generated £38.4 million in revenues ($59.3M) and £18 million in profits ($27.8M) during the March 2008 to March 2009 period." That's a pretty impressive figure, particularly when you take into account how far Jagex has come from £5.2 million ($8M) in revenues and a £2.7 million profit ($4.2M) back in 2004.

Jagex definitely has RuneScape to thank for the majority of this, of course. 94% of this most recent round of profits came from RuneScape subscriptions, according to the Gamesbrief report. Considering that the game is free-to-play, the figures are nothing short of impressive.

Take a look at Gamesbrief for the full story.

RuneScape sees heavy profits for 2009 originally appeared on Massively on Thu, 15 Apr 2010 22:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>f2pfree-to-playgamesbriefjagexprofitsrevenuerunescapeThu, 15 Apr 2010 22:00:00 EST<![CDATA[Funcom's Q1 2009 report shows solid revenue]]>http://massively.joystiq.com/2009/05/16/funcoms-q1-2009-report-shows-solid-revenue/http://massively.joystiq.com/2009/05/16/funcoms-q1-2009-report-shows-solid-revenue/http://massively.joystiq.com/2009/05/16/funcoms-q1-2009-report-shows-solid-revenue/#commentsFiled under: Fantasy, Age of Conan, Anarchy Online, Business models, Economy, MMO industry, News items, Free-to-play, Browser, The Secret World, Casual

Funcom has released a report detailing their financials for the first quarter of 2009. They brought in over US$7 million in revenue for the period, and although this figure is slightly less than the previous quarter (but without the disastrous US$23 million depreciation loss), they are pleased with the stability of their earnings during the economic turbulence of recent times. The report also mentions some positive trends in their flagship game Age of Conan:

Longer average subscription periods, demonstrating customer loyalty
The number of new customers per month is much higher than Q4 '08 (the introduction of free trials helped here)
A solid and stable customer base for the quarter
Higher levels of activity in game than in previous periods

Not to be left out, The Secret World made it into the report as well, mostly just to say that the recent reveal was well-received, and the project is on track. Anarchy Online only really had a one-line entry in the report, and it was to say that revenues from the game were slowly declining. The casual and free-to-play games that Funcom referred to in their Q4 '08 report are also keeping to their development schedules -- the screenshot above is from a java-based MMO that is currently in the focus-testing and gameplay tweaking stages. For now though, with TSW and the other casual games still on the horizon, the overall success of Q2 '09 will once again hinge on the performance of AoC.

Funcom's Q1 2009 report shows solid revenue originally appeared on Massively on Sat, 16 May 2009 11:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>age-of-conananarchy-onlineaoaocbrowser-basedcasualearningsf2pfinancial-crisisfinancial-reportfinancialsfree-to-playfuncomjavarevenuesubscriptionsthe-secret-worldtswSat, 16 May 2009 11:00:00 EST<![CDATA[CCP president points to the EVE community as their reason for success]]>http://massively.joystiq.com/2009/03/05/ccp-president-points-to-the-eve-community-as-their-reason-for-su/http://massively.joystiq.com/2009/03/05/ccp-president-points-to-the-eve-community-as-their-reason-for-su/http://massively.joystiq.com/2009/03/05/ccp-president-points-to-the-eve-community-as-their-reason-for-su/#commentsFiled under: Sci-fi, EVE Online, Business models, Culture, Interviews, MMO industry

These are tough economic times for everyone, but not all companies are experiencing a downturn. CCP, the developers of EVE Online, are finding success while many other companies are striving for larger subscriber numbers.

Gamasutra had the chance to catch up with CCP North American president Mike Tinney and interview him on CCP's success. Of note in the interivew is how much empasis Tinney places on supporting the community of players and working within a game's revenue stream, rather than overloading a game with big budget features to keep a dwindling population.

"There's a lot of strategies out there, and there's so many ingredients in the recipe of a successful MMO any one of them can throw the whole thing off," Tinney said to Gamasutra. "But I think the community is one of the most important ingredients."

If you wish to read the full interview, check it out over at Gamasutra.

CCP president points to the EVE community as their reason for success originally appeared on Massively on Thu, 05 Mar 2009 18:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ccpcommunityeveeve-onlinegamasutrainterviewmike-tinneyrevenueThu, 05 Mar 2009 18:00:00 EST<![CDATA[Top 10 money-making MMOs of 2008]]>http://massively.joystiq.com/2009/02/02/top-10-money-making-mmos-of-2008/http://massively.joystiq.com/2009/02/02/top-10-money-making-mmos-of-2008/http://massively.joystiq.com/2009/02/02/top-10-money-making-mmos-of-2008/#commentsFiled under: Fantasy, Business models, Economy, MMO industry, Free-to-play, Browser, Casual, Academic

In an upcoming "comprehensive study" by DFC Intelligence, they take a look at the top money-makers in the MMO space worldwide. To no one's surprise, World of Warcaft has topped the list, followed by several Asian MMOs like MapleStory, Lineage I and II, Shanda and Fantasy Westward Journey. As for the most users, this study doesn't touch on that. With such a wide discrepancy between active subscribers and prepaid game card users, it's a difficult number to tack down.

What makes this list frustrating is the complete lack of details involved. While WoW is reported to have earned $500 million+ in 2008, the next four on the list are reporting $150-$500 million, and the final five are reporting anything in the $50-$150 million range. To the company's credit, this isn't the final analysis. Their detailed February 16th report promises to give more information on each of the top 10 games. We certainly look forward to that.

Top 10 money-making MMOs of 2008 originally appeared on Massively on Mon, 02 Feb 2009 13:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>dfc-intelligencefantasy-westward-journeylineagelineage-2maplestorymoney-makingrevenueshandaworld-of-warcraftwowMon, 02 Feb 2009 13:00:00 EST<![CDATA[Analyst: WAR subscriptions will eventually settle around 250,000]]>http://massively.joystiq.com/2008/09/24/analyst--war-subscriptions-will-eventually-settle-around-250000/http://massively.joystiq.com/2008/09/24/analyst--war-subscriptions-will-eventually-settle-around-250000/http://massively.joystiq.com/2008/09/24/analyst--war-subscriptions-will-eventually-settle-around-250000/#commentsFiled under: Fantasy, MMO industry, New titles, Warhammer Online, News items

Business analyst Arvind Bhatia shared his predictions about Warhammer Online's financial future with Edge magazine yesterday. Bhatia, who works at brokerage firm Stern Agee, said he believes EA is ultimately shooting for around 250,000 - 300,000 subscribers once the launch dust clears, with occassional bumps when major content releases such as expansons occur.

Given the hype around the game, those numbers seem a little low, but Bhatia said he based his projections on statements made by EA reps saying that the company hopes to break even on its investment. After the game shipped 1.5 million copies, some initial sales data began to emerge which indicated that sales are meeting but not significantly exceeding EA's conservative expectations. In the end Bhatia expects the company to pull in between $55 and 60 million dollars of revenue from WAR.

Numbers like the ones above would clearly not make WAR a WoW-killer, but they would make it one of the elite few truly successful Western, subscription-based MMOs. Certainly this prediction is a far cry from Paul Barnett's wild bet. But of course even Barnett admits his number is a little outrageous, and he only stands to lose $26 if he loses, y'know.

Analyst: WAR subscriptions will eventually settle around 250,000 originally appeared on Massively on Wed, 24 Sep 2008 12:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>analystarvind-bhatiaeaea-mythicedgeelectronic-artsmythicmythic-entertainmentprofitrevenuesalesstern-ageesubscriptionswarwarhammer-onlineworld-of-warcraftwowWed, 24 Sep 2008 12:00:00 EST<![CDATA[Player vs. Everything: The retention game]]>http://massively.joystiq.com/2008/06/02/player-vs-everything-the-retention-game/http://massively.joystiq.com/2008/06/02/player-vs-everything-the-retention-game/http://massively.joystiq.com/2008/06/02/player-vs-everything-the-retention-game/#commentsFiled under: Business models, Culture, Game mechanics, Player vs. Everything

The conventional wisdom in any service-driven industry is that it's far, far cheaper to retain an existing customer than to recruit a new one. This is especially true in the MMOG industry, where your business model is largely dependent on maintaining a long-term subscriber base. The concept also applies to transaction-driven and episodic games, where you need your customers to want to stick around and continue spending money. Box sales are great, but ultimately they're pretty useless except as an indicator of how many people actually bought the game -- returning players are the bread and butter of the MMO world.

In fact, that's exactly why companies are so interested in finding out why you're quitting their game. If they can fix issues that are making a lot of people quit, they can retain more customers and drive up their revenue. Surprisingly, Blizzard is the only company I know of which actually makes people fill out an exit survey in order to cancel a subscription. It's not that annoying and it gives them great information about how to make their game better for you (so if you're adamant on copying Blizzard, that's a good thing to copy). Unfortunately, Blizzard keeps notoriously quiet about their internal numbers like that. So why exactly do people quit MMOGs, and what can and should game companies be doing to keep you interested?

Continue reading Player vs. Everything: The retention game

Player vs. Everything: The retention game originally appeared on Massively on Mon, 02 Jun 2008 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>businessfeaturedgame-designgame-developmentgameplayguild-toolsguildsjoystiqfeaturesmoderationplayer-vs-everythingretentionrevenuesocialMon, 02 Jun 2008 17:30:00 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: MapleStory, Business models, Economy, MMO industry, News items

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

MapleStory 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<![CDATA[Asia to dominate all online life by 2013]]>http://massively.joystiq.com/2008/05/29/asia-to-dominate-all-online-life-by-2013/http://massively.joystiq.com/2008/05/29/asia-to-dominate-all-online-life-by-2013/http://massively.joystiq.com/2008/05/29/asia-to-dominate-all-online-life-by-2013/#commentsFiled under: Culture, Economy, MMO industry, News items

The research firm In-Stat has released a report on the growth of online gaming in the Asia/Pacific region. Total online gaming revenue in Asia for 2007 was a healthy $5.8 billion, but In-Stat claims that market revenues in Asia will spike over the next five years -- hitting a staggering $21.1 billion in 2013. Yeah, that's in US dollars.

In-Stat claims that a confluence of factors such as greater availability of broadband, ever-increasing content distributed across wider mediums, and 'the unique experience that online gaming offers' will propel demand. (Read: many of Asia's gamers surpass our notions of 'hardcore'... we don't have a word for that level of devotion yet.) They go on to claim China will become the largest market in Asia -- no real surprise there -- particularly as over 50% of the country's online games are developed locally. Given this phenomenal rate of online gaming adoption coupled with steady broadband penetration and speed boosts, it's only a matter of time before China's cities are as wired as South Korea's. If that sheer number of gamers can harness unthrottled bandwidth, China may very well become the pulsing digital heart of the online gaming world.

Via PlayNoEvil

Asia to dominate all online life by 2013 originally appeared on Massively on Thu, 29 May 2008 16:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>asiabroadbandchinacultureeconomyhardcorein-statkoreamarketresearchrevenueThu, 29 May 2008 16:30:00 EST<![CDATA[500,000 have signed up for Age of Conan]]>http://massively.joystiq.com/2008/02/07/500-000-have-signed-up-for-age-of-conan/http://massively.joystiq.com/2008/02/07/500-000-have-signed-up-for-age-of-conan/http://massively.joystiq.com/2008/02/07/500-000-have-signed-up-for-age-of-conan/#commentsFiled under: Fantasy, Age of Conan, MMO industry, New titles, News items

Funcom and Eidos spun Age of Conan's high level of anticipation in the community by announcing that more than half a million people have signed up for either the game's beta test or its fan club.

That's a fairly impressive number, although it doesn't necessarily predict sales. After all, beta testing is free; who knows how many people will actually drop $50 (or €40, or £30, or whatever other currency) for the box and then 15 bucks a month thereafter?

Hopes must be high at Funcom, though, given the financial pressure the game's development has put on the company. Next Generation reported that Funcom's Q4 2007 losses were over three times those of Q4 2006 ($3.1 million vs. $1 million respectively) due in part to the cost of AoC's development. Don't let that add to your fears about the development status, though; the company still has $52.4 million to spare.

500,000 have signed up for Age of Conan originally appeared on Massively on Thu, 07 Feb 2008 20:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>age-of-conanaocbetaeidosfinancesfuncomlossesnext-generationrevenueThu, 07 Feb 2008 20:00:00 EST<![CDATA[The Kwari model: Can RMT be taken to the next level?]]>http://massively.joystiq.com/2008/02/05/the-kwari-model-can-rmt-be-taken-to-the-next-level/http://massively.joystiq.com/2008/02/05/the-kwari-model-can-rmt-be-taken-to-the-next-level/http://massively.joystiq.com/2008/02/05/the-kwari-model-can-rmt-be-taken-to-the-next-level/#commentsFiled under: Business models, Economy, Game mechanics, MMO industry, Making money, Academic

I was in the bathroom the other day, reading Games for Windows (because let's be honest, where else would anybody read GfW?) and they had an article on an extremely interesting, though vaguely troubling new shooter called Kwari. Its basic premise is that players pony up a small amount of cash, the amount varying depending on the stakes of the game, and players lose or gain a portion of the pot based on their fragging prowess. Or to put it more simply, it's like online poker, but instead of cards, there are bullets. Designer Eddie Gill of Kwari Limited was hoping that in adding a financial incentive to the basic shooter model, it would result in an experience that was much more intense for the players involved. And if he took in a cut of the profits as well, what's the harm?

By all accounts, Kwari utterly fails at delivering an engaging shooter experience, so whatever sociological implications the game would have had were rendered moot because of sloppiness on the developer's part. Still, this perception that online games could be tweaked to be a form of online gambling got me thinking. Is this business model just a developer supported real-money transaction (RMT) scheme, or is it even deeper down the rabbit hole of Shylock-esque shamelessness?

Continue reading The Kwari model: Can RMT be taken to the next level?

The Kwari model: Can RMT be taken to the next level? originally appeared on Massively on Tue, 05 Feb 2008 14:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>businesseddie-gillfeaturedgamblinggames-for-windowsgfwgold-farmersjoystiqfeatureskwarikwari-limitedreal-money-transactionsrevenuermtTue, 05 Feb 2008 14:00:00 EST