Research: Subscription model unappealing to vast majority of users

by Samuel Axon Jul 23rd 2008 at 4:00PM

Filed under: Business models, MMO industry

A survey performed by researchers Parks Associates titled "Electronic Gaming in the Digital Home II" concluded that there is very little room for market expansion for subscription-based MMOs. On the whole, users surveyed preferred the free-to-play model. The poll data suggested that mostly only the hardcore users already playing MMOs were willing to play subscription-based games, and that only 2% of gamers not currently playing MMOs would consider a non-free-to-play game.

Hardcore MMORPG players tend to frown on or look down on microtransaction-based games, but aside from World of Warcraft, most of the industry's growth has occurred via free-to-play. In fact, the director behind the research project (named Yuanzhe Cai) was quoted saying: "World of Warcraft, with over 10 million players, exceeded expectations for subscription-based MMORPGs, but it's unlikely any other publishers will achieve the same in the near term using a subscription model."

Perhaps we'd better get used to microtransactions, eh?

Tags: business-models, free, free-to-play, microtransactions, parks-associates, poll, research, rmt, study, subscriptions, survey, world-of-warcraft, yuanzhe-cai

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Reader Comments (Page 1 of 1)

JP said on 4:08PM 7-23-2008

I sure hope not.

Micro-transaction games are typically "buy a win" and a terrible community builder IMO.

I'd like to find out how many current MMOG players that pay a sub, orginally thought "there's no way I'd pay a monthly fee" but now wouldn't think twice.

Most gamers need only enough interest in a game to validate paying a sub. It's easy to say no to "would you pay to play", but it's tougher for gamers that are hyped around a specific title or IP they've always wanted to try.

We'll see. I'm thinking that Bioware could be the next "multi-million" MMOG.

Arnie said on 4:12PM 7-23-2008

While I am currently on a subscription based model, I do not like paying monthly for it. The point of an RPG is to grow and develop a character and the moment you stop paying your monthly you loose all of it.
That just makes me kinda sad. IMO the best free model is the GW model in which its not an item you are buying but further adventures which is kinda the point of the game. I just wish they did that in more games. YOu can let go anytime and come back right where you left off.

Adorable1 said on 4:18PM 7-23-2008

Wow! A survey shows people prefer to get things free - rather than pay for it. Shocking!

DeathMutant said on 4:42PM 7-23-2008

The survey's definition of "hardcore" is "anyone playing a subscription-based MMOG"?! Obviously, the survey writer does NOT play a P2P MMOG.

My experience with free-to-play MMOGs is that 1) You usually get what you pay for*, 2) Most players are extremely casual which limits their effectiveness for purposes such as grouping or raiding, and 3) The community is more like Battle.Net than a real community.

Personally, I prefer P2P games because I feel it raises the quality bar on players. Think a PUG in a P2P game is a gamble? Try one in a F2P game!

*: There are some amazing F2P games out there but they are rare; Mythos RIP.

Skypp said on 4:55PM 7-23-2008

I've played both kinds pretty extensively, and I much prefer subscription based. I get no surprises with subscription based, with microtransaction based games you never know when they're gonna spring a must have purchase on you. "What? You're in (insert zone names here) and you don't have (insert needed item or zone upgrade)? Well you can not group with us then".

Kaldor said on 6:00PM 7-23-2008

I have a feeling this is a Biased poll...

F2P MMos have not and will not meet the production standard of P2P MMos...

Hell the only F2P MMo i could be bothered logging into for more then a "Lets see what this PoS is about" time period was Mythos.. and that died on us.

i think when it comes down to it. If you poll the people that play casual online games liek card etc, yea they will try a F2P But hell I , as a MMo player would love to see the true P2P players polled.

There is a reason teh saying "you get what you pay for" has been 'round for ever.

Simon Newstead said on 1:20AM 7-24-2008

Nice thread.. agree with Death Mutant.. if the game is an intense one and needs a lot of cooperation and involvement for raiding, then P2P subscription is good, and no hidden surprises..

For a casual pick up and play game or world, micro transaction does work well.. but couldn't see it working as well in WoW type MMO.

Grimjakk said on 10:40AM 7-24-2008

Adorable1, that was my initial reaction as well: People want free stuff. Duh!

I'm afraid without more information as to the methodology, this news piece is more smoke than light.

They defined "internet gamer" as someone who plays "electronic games for at least 1 hour per month" and has internet access. That means my Mom, with her hand-held electronic blackjack game is an "internet gamer".

That right there makes me raise an eyebrow. ;)

Then there is the issue of just WHICH MMO these "internet gamers" were asked about... are they measuring interest in an actual existing or upcoming MMO, or are they just asking whether they'd be willing to pay subscriptions at all? How many of those peopel were already paying for X-Box Live?

I know people who've never been willing to P2P who ARE going to play WAR. Just because of the IP.

The devil is in the details... especially when it comes to marketting research factoids.

ScytheNoire said on 7:52AM 7-24-2008

Business models are shifting, and to try to stay on a subscription model, from an economics stand point, is an out-dated business model that will need to go away for new games to be competitive.

Those who understand economics will understand that we are in an age of huge shifts in business models, and while some might not understand it, subscriptions hurt the industry overall, and make it much more difficult for new games to be successful.

Sente said on 8:07AM 7-24-2008

Without seeing more in detail on what and how they performed the survey and what they define as "hardcore" or "casual" - it is really difficult to comment on their actual result.

E.g. did they include free trials as an option for subscription-based games and for how long?

Did they require the game package to be bought or did they include just a subscription fee as an option?

Did they include paying either hourly or fixed subscription fees as potential options?

Did they try to put some value or consideration of community aspects, e.g. would people pay if that ended up with different people, less spam, less ads etc?

The survey is 2 years old, conducted in 2006 - it is not really news.

Teiraa said on 8:22AM 7-24-2008

I also don't like to play games with microtransactions (though I still would if the game is really good).
But still, the best model is like in Guild Wars or LOTRO. You pay a sum front up and then can play as long as you want. Doesn't matter if the sum is a bit higher (like LOTRO does it with the lifetime subscriptions), but I really don't like to pay monthly fees to develop a character when in future you will need to pay still more fees just to see your character in action.