Free to Play - Understanding the Alternative Business Models of Modern MMORPGS

As most people are familiar with the risingyear 2005. This figure has doubled in the last
popularity of MMORPGS, or a Massively Multiplayercouple of years making this one of the leading
Online Role-Playing Game, some might not becategories of game revenue for major game
familiar with the more modern business modelpublishers. The Free-To-Play model turns this
many companies employ nowadays to entice newperceived well established model and reworked it
gamers to play their product. There is a risinginto something almost as lucrative.
trend for companies to release Free-To-PlayThis model was made widely popular in first in
MMORPGS. Essentially this means that the productSouth Asia but now is a global trend. The
is usually not found on store shelves for sale andFree-To-Play model is usually a downloaded game
there is the removal of a monthly subscription feeclient instead of a traditional box cd. This helps cut
common with many titles in this genre. Often youdown physical production costs and also
might wonder how a business company canencourages players to try the product for no
survive with a business model of giving away theircharge. This model also addresses one of the
games entirely but I will attempt to explain howlimits of the traditional method and lets the game
many companies thrive on this type of businessbe available to players who may not have access
model.to credit cards.
First I will explain what the RPG game genre is. ItThe Free-To-Play model focuses solely on micro
is a game centered around the player takingtransactions, often ranging in cost from a few
control of a fictional character often in a mythicalcents to a few dollars, focused on virtual avatar
setting and controlling almost all aspects of thatappearance and sometimes performance
character or what is known as an avatar. Theupgrades. No longer was changing your character
overall focus in these types of games is todependent on earning certain in-game items, but
increase or maximize your characters level,by rather making them available for purchase.
abilities, skills and equipment. An MMORPG is uniqueVarious items like property, pets, and items are
in that it is a setting in which players could interactusually all made available via micro transactions.
with others online in a virtual world via theMicro transactions can usually involve exchanging
Internet. The term MMORPG was first coined byreal money for in-game currency. Many of these
Richard Garriott famous for creating one of thecompanies offer numerous payment options as
older and first widely successful online RPG knownwell, including credit cards, cell phone charges, and
as Ultima Online Ultima Online is widelycell phone charges.
acknowledged with popularizing the genre in theAccording to a consumer study of over 2,000
early 90's. Some examples of popular Pay-To-Playonline gamers in the United States, a larger
MMORPGs after Ultima were Everquest in the latesegment of gamers (social, leisure and the
90's and today by far the most popular one isdormant demographic) showed interest in this
World of WarcraftFree-To-Play model as opposed to the traditional
Traditionally these games were available forsubscription methods. The study indicated of the
purchase in a retail store which contained theplayers not currently playing an MMORPG, 14%
game software and when you installed thewould play the Free model as opposed to the
program you also created an account with a validsubscription model.
credit card. Then on a monthly basis you paid theAlso there exists a hybrid model of both
subscription fee which ranged anywhere fromtraditional and modern revenue elements, with
10-20 dollars. This is commonly referred to as agames like Runescape or Mechquest. A limited
Pay-To-Play model. Game mechanics employedversion of the game is available for free, but an
insured that character progression was somethingoffer to upgrade the existing free account to a
that was not fully achieved in a short amount offull options subscription account is available. Often
time. Many of the game elements were heavilythe most powerful and rarest items are made
time centric and it could take many months oravailable to the full members leaving a powerful
upwards of a year to achieve the maximum levelincentive to upgrade accounts.
or desired status. Group interactions were alsoThe rise of popularity of Free-To-Play models
encouraged to achieve common goals thuscertainly will not eliminate the subscription models
further immersion in the game communityentirely but they will definitely continue to be
resulting in players just spending time "hangingpresent in any upcoming MMO titles. The amount
out".of revenue generated by MMORPGS nowadays is
This traditional method has proved incrediblyso significant that the extra viable options of
lucrative for many companies with world widemonetization will continue to be expanded upon.
revenues exceeding over a half billion dollars in the