In Defense of Subscriptions

I like Gamasutra, there are some solid articles about the business side of the industry. Ramin and Isaac are on my reading list not so much because I agree with them but because they expose a side that we rarely see.

Ramin is more of an internal systems designer with strength in economic systems – auction house, crafting and so on. I am guessing he’s working on one of the two Big MMOS coming around the bend.  Isaac is a service guy, looking more to the economic systems outside the game – support models, client interactions and whatnot.  Both of their fields intertwine but I consider the above their specialties.

Isaac’s latest post attempts to support the subscription model along 3 main issues. First, subscriptions push people to get value for money by rushing content. Second, development of said content needs to follow and be of quality. Third, companies cannot price discriminate as everyone has the same fee.

While conceptually I think he has some strong arguments I think there are some flaws and realities that are unaccounted. Let’s say his baseline is accurate for playerbase – 30 to 40, kids, working, no huge time available. Yes they sink less time but they are hyper-aware of dollar per smile economics. Subscriptions drop when similar services are available for less cost, that’s why F2P works.  The math is simple enough.  I have X dollars to spend per month, where can I get value for that money?

Two, content delivery must meet player expectations in terms of volume and quality. Iceberg Blizzard has paid massively for their schedule. SWTOR’s 4th pillar destroyed their ability to quickly iterate and expand (voice acting).  This bleeds a bit into the first topic.  2 months after launch, the content that was there was consumed at a rate far exceeding expectations and what was left lacked value for money.

Three, price discrimination is a red herring. All games have internal metrics to see what is consumed and for how long. WoW saw that their moneysink – raids – were only hitting 1% of the userbase in Cataclysm. That brought us LFR, and now Flex Raids. DDO only offers what sells, same with NeverWinter. Companies know exactly how to nickle and dime. There is no other reason for lockboxes.

Are subscriptions bad? No, they provide a baseline income that investors can see and development can project. They are however, an easily accounted for expense for players to compare to other games. The argument simply becomes “can I spend 15$ or less in another game for the same or more fun?”. The answer, today, is a yes and that bodes extremely poorly for Wildstar and TESO.  They must “out content” all other MMOs (not really seeing this as possible), provide an iterative schedule faster than what is offered by competition (everyone is better than WoW, few are better than Rift) and somehow target their material/pricing to bring in the most dollars/effort possible – without existing metrics.  One heck of a tough road.

2 thoughts on “In Defense of Subscriptions

  1. I think the answer is a lot more variable when you consider the amount of content a new mmo has. Comparing two equally aged mmo’s makes the choice obvious but when you compare an update to a whole new game, even with a $60 price tag the cost isn’t that bad. It’s what makes the box + sub price at least for the initial honeymoon period so enticing, it’s when they can compete with all the free games.

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    • Very true and applies directly to the value for money argument. There from we get the MMO tourist issue, extremely poorly managed launch days (which F2P get by with soft launch crap) and massive server consolidations in month 3 after launch.

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