The subscription model isn't dead - Parker
Industry is "arrogant" to assume consumers want to adopt newest business models, says consultant
While many online games have dropped a subscription model in favour of free-to-play, there's still a strong desire for subscriptions from consumers, according to consultant Nick Parker.
He claimed the industry is arrogant to think that it always knows best, and it risks alienating customers by assuming one service fits all.
"It's not dead, there is still a desire to have subscription models out there from consumers," he told an audience at Develop in Brighton today.
"We think there are people out there who are stupid if they want to pay a subscription, that's crazy."
We live in a guilded world here as part of the industry. We think that everybody is like us
Nick Parker, Parker Consulting
The advantages of subscription are still very appealing to consumers, said Parker, such as a single payment option and parents being able to control their children's spend online. For developers too, there's a constant revenue stream even when players aren't online, and developers have a deeper relationship with long-term players.
And while games such as Lord of the Rings Online, City of Heroes and Age of Conan have all shifted to a free-to-play model, Parker said that the UK and US businesses make big assumptions about their consumers without considering different markets want different services.
"We live in a guilded world here as part of the industry," said Parker. "We think, especially in the UK because we're super-arrogant, a bit like we are in the US - that everybody is like us, we're all for slightly irreverent, dark-type of gaming experiences. But in fact if you're a global business and you go talk to people in Spain, Italy and France, you're not going to be talking on the same level.
"They are not going to want to play those type of games all the time, which is why Xbox 360 and Microsoft are having a very tough time in getting global leadership because they cannot beat PlayStation in those territories. They will always be winning because they have very strong brands and a family presence."
I think the biggest thing pushing the "freemium is the way to go" ideology is the fact that one specific game still dominates the subscription pay method, and without offering free to begin with games the challengers can't compete or gain the market share.
It costs alot of money to get a MMO on the same level of quality as WOW but it doesnt garuntee any form of sales and requires massive support and game world updates to compete with the best its just incredibly risky.
The freemium games in my opinion arent as good or ambitious and polished to begin with, but they grow in size and ambition as their market share and number of paying consumers increases, and since its the actual actual players investing in the game world and its continued support you can scale up what your adding with the size of the player base.
With subscriptions your expectation level is alot higher and your willingness to continue playing is stretched with every crash or unbalanced class when you can go back to the nice safe world of WOW where there will be new content you trust will be familliar and not as buggy.
I do agree with the articles principles, I just think claiming its arrogance that is dictating the market is ignoring the massive white elephant that has put off investors who ultimatly control what a games direction and method of payments are. Until a competitor gives WoW a run for its money you will see people beleive that Freemium games are the way to go.
Edited 1 times. Last edit by Tom Pickard on 19th July 2011 4:49pm
Posted:A year ago