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Are Micro-Transactions the Future of Online Game Business Models?

Last week we discussed news of Sony Online Entertainment's unveiling of a store that would allow players to purchase in-game Everquest items for real money. Massively spoke with John Smedley, SOE's CEO, about the system and what their goals were. He made the point that they were limiting sales to things that wouldn't unbalance the game. "They're fun and they're convenient. That's all they are. We're not selling power. There are a lot of respectable viewpoints on this, and a lot of reasonable people can disagree on them. Our view is that nothing here is gamebreaking." Edge Magazine has a related piece about Mytheon, an upcoming action-strategy game that will rely on micro-transactions to support its otherwise free-to-play business model. The game's producer suggests that micro-transactions are "a model that really gets us closer to the end user, and that's the way things need to be in the future, online."

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  1. Hooray! by Godman · · Score: 5, Insightful

    I love being nickeled and dimed to death by everyone.

    --
    I have this really funny quote that I like to put here. Unfortunately, there's this really annoying thing called a char
    1. Re:Hooray! by vux984 · · Score: 5, Insightful

      Microtransaction isn't just about making a profit. It can also allow a new company/game to grab a sizable player base quickly. "How?" you may ask. Many of the microtransaction mmos I have played offers a standard set of content free to sign up and free to play.

      Those aren't microtransaction mmos, those are simply pay-as-you-go mmos (vs subscription mmos). And pay-as-you mmos are a great idea. I'd play a lot more MMOs if I didn't have to subscribe -- because I have only x hours to play, and if I add a 2nd mmo my costs double but I don't have any more time to play... lousy value proposition.

      A microtransaction mmo is when you get the game, and then after you login you choose a class... warrior or cleric are there... or you can pay $2.00 to unlock ranger.

      And then you walk into town... the inn is open and the blacksmith is open... but $2.00 to unlock the artisans guild hall which is lets you dye your armor. So you walk into the blacksmith... ooh, a shiny +1 shield is available but its got a picture of a pink butterfly on it. But for $2.00 you can unlock the +1 shield-pack with a pictures of dragons, unicorns, bears, and lions -- still pink unfortunately, but you can dye them in the artisans hall!

      Then you head out into the wilderness to hunt and explore... You approach a hut in the woods, enter it, kill the 2 gobblins inside and find a trap door to a cellar. You reach down to open the trap door... $2.00 to unlock the goblin tunnels instance. Maybe later...

      Then you form a group with some other newbie... and an hour later he's gained levels 3 times, and your barely half way through your level... and you started out at the same point... so you ask him about it... and he tells you that for $1/potion you can boost your xp/kill by 50% for 30 minutes -- he found the potion vendor inside a cool goblin tunnels instance...

      Mark my words. That's where things are heading.