Western gamers, according to Dancey, still spending around $1.2 billion a year on MMO subscriptions.
By Alex Walker on January 10, 2014 at 7:05 am
Subscription models are both falling in and out of favour in the software world. They’re becoming more and more common on mobile devices and for productivity tools like word processing, graphic design and anti-virus software, which is the opposite route they’ve taken in gaming. More and more MMORPGs have abandoned their pay-to-play business models, although some, including the upcoming Elder Scrolls Online MMO from Zenimax, have stood by the practice.
Ryan Dancey, the chief executive officer of Goblinworks, makers of Pathfinder Online, believes it’s the right choice. In a guest editorial on MMORPG, he takes issue with a Forbes.com editorial where ESO‘s subscription model was panned as “increasingly outdated”. “It’s even harder to estimate how much revenue is being generated from microtransactions (MTX) but it is extremely difficult to imagine that the revenue even approaches 50% of the amount being paid as subscription fees,” Dancey says.
He goes even further by making some predictions of his own, which includes the staggering belief that around US$100 million is being spent by Western gamers (Australia/New Zealand, North America, Europe, Russia) on MMORPG subscriptions. “People like the ease of not having to worry about paying to play a game every time they log in,” Dancey explains.
“They like the idea of paying a known, fixed price and not feeling required to “pay to win” when they play. Subscription services are extremely commonplace: cell phones; cable/internet service; Hulu; Netflix; health clubs, etc. are a common facet of everyday life.”
I’m always fascinated when developers come out and talk numbers. It’s a great editorial although it’s a couple of pages long and it does get particularly dry. It’s also worth noting that a lot of what Dancey says is based on his estimates; nothing is set in stone. Food for thought nevertheless, though.
Source: Thanks, VG 24/7!