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.

Holy Bangarade

10 weeks on parental leave and back to work now for 2. It’s annoying when you delegate work and nothing at all got done. Now I have 10 weeks of work to do in a few days. Quality!

Suffice it to say I need a mental breather some nights. Lack of time means minimal investment though, so I’ve been giving F2P games a hit.  No RIFT, GW2, WoW, or any game that I can’t simply drop within 2 minutes.

The Mighty Quest For Epic Loot

This one is in open beta and a lot like Dungeon Master and Diablo in that you can set a castle full of traps and run other people’s castles. It has upgrades with timer (where the F2P stuff comes in) which is fine I guess. The gameplay is horribly balanced though where the tanky class can run through anything without batting an eye, even 6-7 levels above them. The other classes have no chance. But it’s beta and the concept is solid. Maybe in a later patch.  The file size is rather small.

Infinite Crisis

I got into the beta, which is beta.  You’re comparing LoL to a game with an admittedly limited character roster.  You might have 4 flavors of Batman but it’s still Batman.  There are technical bugs, some serious balancing issues but overall the game is pretty solid.  Community management is going to be the real kicker here.  Current playerbase is nice enough, since it’s test.  But once you get the crud coming in, there needs to be a way to filter that out.  The learning curve is extremely high but that’s expected in beta.  Oh, and it needs way more maps.

Dragon’s Crown

I don’t play a lot of console games, only when I’m on the bike.  This one is pretty solid, with a link back to the arcade D&D games.  Is it worth 60$ though?  No.  Maybe once it hits 30$.

Marvel Heroes

A new patch (1.2) fixed the defensive skills, added a ton of itemization and huge balance changes. This is what the game should have launched with. It even has 3 difficulties making the trek from 25 to 60 different than running the same zone for 20 hours. The itemization and skills are the polar opposite of Diablo3, which is good.

Diablo3

Just a few days in, tried a new Monk build. Cost me about 25 million in gear to make it work due to the way itemization works in game. And this isn’t even for hard stuff, just regular Inferno. What’s the point of upgrading gear if you need to swap nearly all of it to change builds? Maybe 1-2 pieces but not 10.

And of course the AH is going away in 6 months – likely the launch date for the expansion. It annoys me that Loot 2.0, which is what the consoles got, has been getting great reviews but the gamer base has to wait so damn long for it. Anyways, the AH simply focused on Jay Wilson’s poor direction for multiple systems. A loot system that dropped inferior gear even at high difficulty, itemization that drove stats to absurd levels to even compete, the requirement for “perfect” rolls for the item to have any possible value and a difficulty setting that made no sense. All of those systems by the way, have been or will be removed.  The game today is wildly different than launch and the console version is yet another massive leap forward.

Listen, the AH was a good concept to avoid gold farming and scamming. If I knew I could get upgrades while playing (I have never once with my monk past 60), then the AH would just be a slight nudge. When I can see that a single item on the AH can raise my damage by 10% and costs 20 minutes of gold farming time, there is a massive problem in the loot system.  Shutting down the AH is one thing, shutting down the RMAH is another, as that thing certainly brought in a sizeable amount of income.  It takes some pretty large brass to through that away – baby and bathwater.

Back in Town

For a short while that is.  I’m on 10 weeks parental leave at the moment and nearly all of it is away from a computer, making posting (and even keeping up with the news) extremely difficult.

That being said, if you have kids and have the chance to spend any amount of time with them, take it.  Time is the only thing that we can’t make more of.  Everything else is passing.  I’ve personally never had as much fun and hope to do something similar every summer from now on.

See ya soon!

Summer Is Here

Summer is here and that means sun and fun.  I’m lucky enough to have the summer off, of sorts.  Actually, it’s parental leave with 2 young kids.  Depending on the day, it can be seen as better or worse than vacation.  Topics today are my break, XBOX and GOG.

Me

Last week was at the cottage and for my birthday, my eldest daughter and I went fishing.  Lucky me, I caught a 40 inch pike.  As big as my 3 year old.

I’ve mentioned in the past that a true MMO has fishing and until then they are just pretending. I caught this bugger turning a corner, about 200 feet from the dock.  Took 10 minutes to haul in and the net I had was a tad too small.  Took pictures and sent it back on its way.  Won’t ever forget that day.

XBOX

Back in town now and back to the news.  Don Mattrick has left XBOX and moved to Zynga. Love or hate the guy, he built the XBOX to what it is today.  Hard-ass to the end, it seems the only ones with success in the big industry are like that.  Enough that when news hit that he had moved, Zynga shares suddenly became a “BUY”.  I don’t see how anyone will be able to properly replace him now.  That has a lot to say about the 180 Microsoft has had to pull lately, and now two top execs are gone because of “always on”.

GOG

Good Ol’ Games is having their summer sale.  This is the start of the end for me as I love their selection.  STEAM has more recent titles but jeebers if you can’t find excellent quality on GOG.  No DRM and for $60, you can get 20 absolutely amazing games that will give you thousands of hours of play.  Steam is going to break me in a few weeks, I know…

F2P – Baseline Forward

There’s enough hullabaloo (I don’t get to use that word often) about F2P in the blogs today.  I don’t necessarily get the fervor so much but I suppose with RIFT swapping and Neverwinter “officially” launching, we’ve got new competition.  Here’s a thought for the day.

The theory is that in an open market, the market itself self-regulates.  This has a dependence on there actually being an open market, so no collusion (banks and gas) and no monopolies (Windows, Internet Explorer).  Movies are an almost an open market in that the price of tickets from theater to theater is relatively the same.  Cars are similar, since you can do an apples to apples comparison of features and price match between dealers.  Games are close too, since the upper cap for any game is going to be $60 and anything below that seems to be seen as “budget” title.

The new variants to this are the mobile space, DLC and F2P games.  Mobile space has 3 price points – free, 99c and $4.99.  Anything outside of that is an outlier.  DLC is seen as $5 as a price point for any given package, regardless of quality.  This makes season passes effective in that you pay 20$ for the promise of 5 packages (or more).   These prices are set because of market saturation and competition.  Why spend $7 here when I can get the same item for $5 there.  Subscriptions above $15 have never worked.

F2P games are approaching a baseline price model for various features.  For a long time only the East had a model and everyone on this side of the pond basically stuck their thumb in the air and guessed at a price.  Allods is the poster child for how pricing structures can destroy a product.  Up until a few years ago, we basically had Zynga & friends telling us the price for F2P.  DDO swapped with a decent package, then LOTRO, STO, AoC, EQ 1&2 and now a few more.  The market is still somewhat fresh and expectations for pricing points are still somewhat in flux.  That being said, I think we’re hitting the point of what’s acceptable.

A mount at $10 is acceptable.  Costumes and customization at $5.  DLC expansions at $10-$20.  The market is going to decide what is acceptable if you give enough similar choice.  RIFT, Neverwinter, LOTRO, EQ and SWTOR all offer extremely similar services.  Any new gamer looking at the field is going to try to find value for their dollar and right now, RIFT and Neverwinter are setting a heck of an example.  EQ recently (a few months back) increased what was available to the masses.

At the end of the day, each developer needs to make money to pay for servers and staff.  It does not get any simpler than that.  In order to make money, they have to sell something.  Consumers are now in a better position to compare products and value, and invest where they see fit.  This is going to drive the market moving forward.  Voting with your wallet works and is the only true way to make sure something changes.

XBONE – Sad Face

Here’s a link to an anonymous Microsoft employee (allegedly) explaining what they gave up when they rolled back their DRM strategy.  I’ll go over a few parts I find worth discussing.

We didn’t do a good enough job explaining all the benefits that came with this new model.  We spent too much of our time fighting against the negative impressions that many people in the media formed.

Extremely accurate.  There was not an ounce of positive spin for anything MS was pushing.   Quite the opposite.

Many will argue the development system is broken, and I disagree.  The development system is near broken, it’s used gaming that is broken…

“Many” being actual developers themselves.  If selling over 1 million copies at full price is a loss (Amalaur), it is not used games sales that’s the problem.  Used games are a symptom of the problem, pricing and value.

First is family sharing …  The premise is simple and elegant, when you buy your games for Xbox One, you can set any of them to be part of your shared library.  Anyone who you deem to be family had access to these games regardless of where they are in the world.  … When your family member accesses any of your games, they’re placed into a special demo mode. This demo mode in most cases would be the full game with a 15-45 minute timer and in some cases an hour.  This allowed the person to play the game, get familiar with it then make a purchase if they wanted to.

First, not anywhere in the world, only a place with online access to XBOX Live and an account active.  Second, I do this today by handing a copy to my brother and he has an unlimited demo.  Third, many games today have demos or videos to show how the game is played.  Do people really buy games blindly?

I stand by the belief that Playstation 4 is Xbox 360 part 2, while Xbox One is trying to revolutionize entertainment consumption.  For people who don’t want these amazing additions, like Don said we have a console for that and it’s called Xbox 360.

And this is really the crux of the matter and where I think there is the largest disconnect between the audience and the provider.  The XBOX (and the Playstation) are gaming platforms.  Gaming platforms have existed “as a thing” for nearly 40 years and have had only minor changes over that time.  The core process is the same though there have been additional services layered on top.  I have a game, I have a controller, I have a TV, I have a couch.  I can bring the console on road trips.  I can play my friends games when he comes over.  I can play with headphones on when my S/O is in the other room.

The XBONE broke all of that and didn’t sell an upside.  Here’s what could have helped.

The family program would have been great if they had access to your games without a timer.  DRM would have been acceptable if prices were lower.  DRM would have been excellent if there was a digital used game marketplace.  DRM would have been OK if you only needed to check in at first install.  DRM would have been OK if you only lost multi-player functions while offline.  DRM would have been acceptable if you provides 2-3 use case examples.  DRM would have been fine without region restrictions.  Kinect would have been acceptable if you could turn the thing off completely.

None of those features existed.  Whatever benefits the console may have had, each one of these items combined to make it a deal breaker for the general gaming population.  A revolution happens when there is a need for it.  When things are desperately bad.  You don’t impose a revolution.  If you try to, then you get exactly what Microsoft has been getting for a year (including Windows 8) massive and un-ending backlash and perhaps a revolution you didn’t want.

XBox One Eighty

So news here, here and here.

Before I get into what this means, let’s refresh our memories a bit here.

Can’t get online?  Too bad, buy a 360.

We can’t just flip a switch to turn off DRM.

This is the same company that said we had to live with the fact that there was a new paradigm and no amount of complaining by the public would make it change course…

And here we are.  Today’s announcement that the XBONE has removed nearly every single DRM function from their system.  There is but a fraction of a degree between what they’ve done and a true 180.  To summarize:

  • No need to be always online
  • You DO need to be online to register the game initially
  • No check-ins every 24 hours
  • Discs work similar to the 360, in that they need to be in the console to play
  • Downloaded games work offline or off
  • You can rent, trade, exchange games as you do today
  • Works in all regions (AUS games in US)

What are you exchanging for this?  The ability to play games wholely from the cloud, meaning you didn’t need a disc in the console.

So after taking what by most accounts is the most massive pounding in gaming history, completing denying reality, telling gamers to basically smeg-off, flipping the bird to the used game industry (GameFly & Gamestop), losing a VP for trying to push always online and still selling games for the same price as the PS4 they decided to turn tail.

Can you imagine being inside the Microsoft offices the past few weeks? It must have been like a madhouse of scrambling from a PR side, trying to spin the “future” of gaming.  Even Major Nelson had a hell of a time trying to pitch it.

Still, this is good for Microsoft.  With ~4 months to go, they’ve removed a massive barrier to sales.  Sure, you still have a camera that’s always one.  Sure you still need to have internet access to initially launch a game.  Sure, it’s still $100 more than the PS4.

At least the playing field is a bit more equal.

The Crash of 2015

Pure speculation post incoming.

By the end of this calendar year, all the new consoles will be on the market.  The 2013 holidays will see the “hardcore” gamers buy either a PS4 or XBone. True market penetration won’t really occur until the fall of 2014.  It’s cyclical, happens with most any product.  I would hedge my bet on a particular brand but that doesn’t really matter much for this topic.

What does matter is the cost structure of said consoles and games.  Microsoft has stated that their first-party games will be $60.  Sony has said the same.  I’m disappointed in the former since one of the main draws is the reduction in pirating/used game sales, therefore companies should be making a lot more money.  You’d think the prices would be lower.  It’s  a bit more expensive than today’s games and the dev costs should be lower since the architecture between PC, PS4 and XBone are near identical.  Game prices are part 1 of the problem.

Free to Play (buy to play, freemium, cash stops) is a still relatively new financial model that no one really has a good grasp on.  A company can get 1-2 years tops out of a cash stop before devolving into lockboxes.  There comes a point where there is simply nothing left to buy and the company still needs money to operate.  There are more games that fail this particular step than succeed (waiting on Marvel Heroes to discuss this point).  Part 2 of the problem.

DLC is bleeding between the line between core play, additional content and value.  Gone are the days of horse armor but here are the days of Protheans.  While Skyrim DLC can prove to add value to the entire game, the prevelance of in-media-res DLC (like Deus Ex) is disturbing.  Entire chunks of the game are missing.  Part 3 of the problem.

Micro/macro-transactions have yet to find a floor or ceiling.  LOTRO horses, EvE monocles, sparkle-ponies are in a class of their own.  Paying for crafting material in Dead Space 3, or simply having a cash stop button on every screen, regardless of the underlying payment model, is garish.  Paying for XBox Live and still getting ads is ridiculous.  Part 4 of the problem.

Disconnect with the core audience.  Back in the day, the core audience was 18 year olds sitting in a basement.  They still exist but the core spenders are older, those with more disposable income yet conversely less time.  An older person has a better understanding of value for service yet there is a growing divide between AAA developers and consumers.  Ni No Kuni, Tomb Raider, BioShock and The Last of Us are supreme examples of quality and sold extremely well.  Gears of War and God of War are cash grabs that are bleeding companies.  Part 5 of the problem.

Independent developers are the future.  It’s not a question anymore, it’s simple reality.  They cost structures are lower, they aren’t jaded, they target their games to a specific market and have lowered expectations.  The gate to entry is small (especially on PS) but the market itself is becoming saturated.  This makes it hard for a new indie game to reach the spotlight, outside of word of mouth.  Part 6.

A crash occurs when a bubble bursts.  A bubble occurs when reality is artificially inflated up to expectations, in order to turn a profit.  Gaming today seems to be heading farther and farther away from reality and more into slide decks for quarterly reports.  Looking from the outside, it seems more like a head scratching exercise of “did they really think that would work?”  The market is heavily saturated with the same product on every corner, with less features and more cost per iteration.  There are only so many SWTORs that can launch and fail before bankrupting a company (see THQ).  You can’t spend $100 million to develop a game that sells 100K copies or only provides income for 3 months.

The gaming paradigm that exists today is doomed for failure as it is simply not sustainable.  There’s no one single problem to fix, it’s a plethora of systematic failures driven by a core concept – getting more money out of gamer’s pockets.  We’re nearing the edge and it’s a hell of a fall on the other side.

Buying a Car in the US to Save Money

Up here in the Great White North we pay a tad more for cars than our southern cousins, even though NAFTA pretty much says we shouldn’t.  I get paying freight fees to subsidize the places a bit farther off but even those are astronomical.  We in the final steps to get plates on our new Subaru and I wanted to post this as a sort of guidelines for importing a US vehicle into Canada and saving some cash along the way.

There are three main things to consider here: vehicle selection, location and costs.

Vehicle Selection

Vehicles on either side of the border do not have the same packages.  Because Americans have massive incentives to purchase vehicles, there are way more options available.  The 2.5 Limited that we purchased has zero options in Canada and over 12 in the US.  Make sure that when you are actually comparing cars, they are identical.  Otherwise all the rest doesn’t add up.

Some states have odd requirements for their vehicles and won’t match with Canadian rules.  Visit RIV to compare that.  If it doesn’t comply, don’t buy it.  It will come in imperial measurements (miles) because Americans are one of 2 countries in the entire world that have not moved to metric.  Don’t get that changed, reduces the value of the vehicle.

Location

Due to importing restrictions, there are very few borders that allow single day transfers over the border.  New York only allows it at the Lewiston Bridge near Niagara Falls for example.  Each state has their own regulations and forms to fill out to avoid state taxes, insurance and possible environmental fees.  Maggot’s is a great resource for that info.  If you can’t cross the border in a single day (the dealer will let you know what’s possible), then you will need to park it at the border and come back in 72 hours (not counting Sundays).

If you can come back, be sure to plan accordingly based on traffic patterns.  You do NOT want to be anywhere urban during rush hour (4-6pm).  Crossing the Greater Toronto Area is a nightmare.  Our trip took a bit more than 4 hours to get to the dealer and approximately 12 hours to return.

Costs

You’d think this would be the only thing but there are plenty of variables here.  There are 2 main things to understand here, first is that if the vehicle is made in North America you have no import fees.  If it is not, then you pay 6.1% on the value.  The second is that you pay your provincial tax at the border, plus a fee for A/C and a 200$ import fee for inspection.

Warranties are covered int he US and Canada.  Except Canadian dealers are going to be mad you went south and won’t do the paperwork, so you’ll have to submit a claim to the US maker for a refund.

Base price is a different matter.  In Canada, only the MSRP is public domain.  You need to pay to have access to the Invoice price so you’re missing info if you want to deal.  In the US, invoice price is available with ease.  You can even get the BlueBook / Fair Price estimate based on what other people have offered for the same vehicle.  You need to pay cash, in US funds.  Get a bank loan if you don’t have the liquid.

For example, we did some research on US prices and found the 2.5 Limited had an invoice price of $30,402.    We paid $1500 above list.  The Canadian price $38,287, after negotiation.  That’s right, $6500 in savings.  The 2.5 Limited was cheaper in the US than the base model in Canada.  By a lot.

You know how the old joke goes, the sticker price is not the final price?  Well in Canada that’s certainly the case with all the extra fees.  In the US, the price is the price.  Amazing.

Lessons Learned

After the run through it all I would posit the following lessons learned.  First, figure out your travel details above everything else.  Dealers will match prices, make the trip make sense.  If that means you drive to a town 2 hours away, park the car 3 days and come back, then it’s 8 hours travel total over 2 days.  If you want it over with, you might be driving 12-24 hours when it’s all said and done.  Very exhausting.

You can do all the paperwork yourself or get the dealer to do it for you.  We went with the dealer for lack of time but there’s not much that needs to be done.  Unless you want it done in a single day.

Summary of Steps

  • Research the vehicle and understand the options.
  • Find the invoice price for your options, add ~$1500 for dealer profit
  • Search dealer websites for your vehicle and make calls
  • Figure out your border crossing strategy (1 day or 72 hour wait)
  • Pick a dealer location that works with the strategy
  • Find out that state’s taxation structure
  • Negotiate with the dealer for additional services (extended warranty, car starter, paperwork, etc…)
  • Get a final price, organize a pick up date and tell them what border you are going to take
  • Talk to your bank to get the money set aside, certified check in US funds for the dealer
  • Talk to your insurance broker, get them to call the dealer and arrange insurance
  • Add $100 for A/C fee, $200 for import fees and then your provincial taxes in Canadian funds for the border crossing.
  • Leave early to get to the dealership early.  Takes an hour of paperwork and inspection. You need the Vehicle Title, Bill of Sale and Warranty claim to cross the border.   You also need a temporary license for the state.
  • Reach the border, visit the US export office.  Give them the required paperwork to complete the export.  Takes 5 minutes.
  • Reach the Canadian border terminal, after you cross, go inside to the Import office.  Pay the additional fees (A/C, import, taxes) and fill out Form 1 for RIV
  • Go home, wait a few days for Form 2 to come in the mail.  Visit a Canadian Tire for the final inspection.  Submit the form and go and get your plates.

All told, it took us about 18 hours for the entire trip and we saved ~$6000 dollars, including gas, incidentals and paperwork.  Extremely worth the effort.

Patch Day!

Both Marvel Heroes and Neverwinter are having kitchen sink patches today.  Well, maybe a bit less on the former.

Marvel Heroes, as I’ve mentioned in the past, has some problems with core mechanics and less to do with balancing.  Patch notes try to address a bit of that.  I don’t get why you need to login to see patch notes…  Anyhoot, they are upping the drop rate of heroes and costumes (I’ve seen a total of zero in about 60 hours, even though I’ve played the entire game with +drop gear), fixing some rather large combat bugs and adding more grouping to end-game content.  1) is cool.  2) is badly needed. 3) doesn’t even come close to addressing the problem of longevity.

Remember DCUO when it launched?  Everyone could reach max level in a day or two, then had nothing to do (raids were sort of in but broken).  Well, Marvel Heroes is the same except you’re not at max level.  You can complete all the content in what seems like 5-6 hours and get to level 25 or so.  With a max level of 60, you’re looking at about an extra 100 hours of grinding the same content (about a dozen dungeons) and no rewards from it, because itemization is more or less broken past level 30.  Yay?  There’s a tremendous, massive, gaping lack of incentive to keep playing as there’s no tangible progress.  I don’t change my appearance, I haven’t changed items in over 10 levels (I’m at 37 now), I haven’t had a new skill in 7 levels either.  The most “optimal” run for me right now gives me 5% of a level in about 7 minutes of work.  And I have 23 more levels of this to go.  Eh…there’s just no real carrot.  And honestly, 20$ for another character, which is basically another skin, is crazy pricing.

Neverwinter on the other hand has content a plenty but lacked balance.  This patch is a true kitchen sink.  Grouping is being fixed, threat, class balance, enemy difficulty, bugs, crafting, display… you name it.  I had tried a fair amount of Tier 1/2 dungeons, with friends and random folk.  As a Cleric, I just simply died after 5 seconds of combat due to threat mechanics.  Not only is that changing but the tank class is getting an across the board boost of 35% to threat plus a few more tools.  Maybe the game will actually have a trinity rather than just the current damage/healer paradigm.  If they get it right, I think it could be seen as the standard for F2P games from now on since it’s the only one that I know of that hasn’t been retro-actively made F2P but instead designed that way from the start.  Fingers crossed on this one!

PS.  For those looking for a decent ARPG, free to play, massive amounts of depth and challenge, try Path of Exile.  They are open beta, they are taking money but it feels more like Minecraft open beta than anything else.  I think it’s one of the best ARPGs out there, personally.  Here’s a picture of the skill tree, no joke.

Path of Exile Skill Tree

Path of Exile Skill Tree