Valve Switching Team Fortress 2 To Free-To-Play Increased Revenue Twelvefold
An anonymous reader writes "We've frequently discussed the growing trend among video game publishers to adopt a business model in which downloading and playing the game is free, but part of the gameplay is supported by microtransactions. There have been a number of success stories, such as Dungeons & Dragons Online and Lord of the Rings Online. During a talk at the Game Developers Conference this week, Valve's Joe Ludwig officially added Team Fortress 2 to that list, revealing that the game has seen a 12-fold increase in revenue since the switch. He said, 'The trouble is, when you're a AAA box game, the only people who can earn you new revenue are the people who haven't bought your game. This drives you to build new content to attract new people. There's a fundamental tension between building the game to satisfy existing players and attract new players.' He also explained how they tried to do right by their existing playerbase: 'We dealt with the pay-to-win concern in a few ways. The first was to make items involve tradeoffs, so there's no clear winner between two items. But by far the biggest thing we did to change this perception was to make all the items that change the game free. You can get them from item drops, or from the crafting system. It might be a little easier to buy them in the store, but you can get them without paying.'"
freemium only works on stupid people... fortunately most people are stupid.
Congratulations guys ;-)
crazy dynamite monkey
Call it freemium, call it widget frosting, call it whatever you want... giving the core item away and selling the addons has always worked in the gaming industry and this is just another victory for the concept.
I was going to disagree with you, but then I realized Farmfille is the most popular "freemium" game ever and I was forced to change my mind.
There's no -1 for "I don't get it."
what about those of us who paid for a complete game? are we subject to 'freemium' now too? what a ripoff..
I think keeping 'Pay to win' concerns at the forefront is the key. Nothing turns me off of a game faster than that. At least, when the game is one where I'm competing against other people online. When it's a single-player game, the idea that you have to pay in order to win really irritates me, but if it merely takes a fair amount more skill to win if you don't pay, then it's sort of OK.
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I think the key to all of this for me, and why I like it over other similar models, is this statement:
"You can get them from item drops, or from the crafting system. It might be a little easier to buy them in the store, but you can get them without paying."
If you are lazy, you can pay. If you don't want to pay, you can work a little for it. Sounds good to me!
We already knew that Linux can be a profit area for business, even though it's "Free". Now we see that same thing working in Gaming.
It requires some new methodology, and business modelling of course. But it works!
I'm always glad to see success stories. This a great example. Steam in my opinion has done a great job creating a platform. TF2 plugging in and taking advantage, very smart!
-The wise argue that there are few absolutes, the fool argues that there are no probabilities.
A common truism you learn in business school is that it's usually easier (and less costly) to sell more to your existing customer than to try to get new customers...
If every new dollar you earn is less costly, you have more operating margin which you can then use to feed back into your business and make it grow faster. Thus cross-selling and up-selling techniques are really just no brainers that nearly everyone uses. Works in almost any business (including the gaming industry).
Don't auction games work this way? You 'win' by being willing to pay more than anybody else. Seems to be a proven model.
Please people stop buying stupid hats and stuff for TF2. Every single time you dump money on that game it's less incentive for valve to spend money on other, one time cash cow, games like HL3 or HL2:EP3.
Why should they spend massive resources making a game people only buy once when they can get idiots spending real money on digital hats from now until valve runs out of pixels.
Valve has forsaken their loyal fans for a continual revenue stream from cretins with more money than sense. I've lost all respect for Valve...for shame.
"Look Dad - this one's free!" appeals to every Dad who just spent hundreds of dollars on stuff they left on the lawn or on the floor of the bathroom.
I said no... but I missed and it came out yes.
Since Valve *is* stealing their business model....
I've got to hand it to TF2. I've been playing it for a very long time and I've never had any problems not buying anything. They really are doing a great job with the trade-off system. If we were to start talking unfair advantages, it would be in the scale where your mouse (or hell, even your chair!) would need to be taken into account.
...AN' WHAR DID ME CROTCHY-SMILEY GO!?
With all that moolah, it wouldn't kill them to roll out some new official maps and gamemodes though... and maybe Meet the Pyro?
Switching to "freemium" now may have increased revenue now. That doesn't necessarily mean it would have been a good idea to release as freemium in the first place. Valve had 4 years to convince people to pay up-front for TF2, and they succeeded quite well! But after four years, you've just about exhausted the supply of people that are willing to pay up-front. Switching to freemium not only brings in new customers, it also convinces some of the original buyers to pay again for in-game items. Now that's smart.
IMO they struck the right balance, too: TF2 is still fun without paying anything (or in my case, any more than I paid for the Orange Box.) If you had to "pay to win", people might be pretty pissed off.
Does this mean piracy really ISN'T that damaging? They could simply make up their "lost profits" (note the quotation marks) by offering virtual perks for real-world cash?
Honest question and sorry if it is redundant, but I don't have the 45 minutes necessary to read everything here as some of these posts read like a kid writing a novel in crayon.
the solution was hats.
and this:
http://www.cad-comic.com/cad/20120305
So, is that 12x the revenue at release? Or 12x the revenue compared to when they went free2play which was after the game had been out for years and basically wasn't even for sale anymore? Also... Revenue? What a useless number. How much have PROFITS increased? You now have hundreds of thousands of people playing your game for free... not buying anything at all. Are the few that are paying, actually making up for all that?
The clear endgame for this situation is to get people to pay as much money as possible for something that takes the least amount of work. So basically, new weapons that use the same skin as old weapons but make winning much easier. To shut up people who don't want to pay, you make the weapon unlock-able, but make unlocking it significantly more difficult than paying $19.95.
I understand that these companies are out there to make a profit, but if you drive customers away by building a name for yourself based on poor investment in new content, and nickle and diming your customers (See EA and SOE as good examples) Eventually, no matter how great of a game you produce, people are going to ignore it because they know what's coming next. 2 months after release "here's the other half of the game and it'll cost you $300 to get it all, but we won't tell you that, we'll just obfuscate the price of everything to the point that you have no idea what you're paying anymore, maybe we'll make you buy 1 kind of in-game credit and then trade it for different kinds of in-game credits, all with different values and exchange rates" (See StarTrek online, it does this in spades)
The gaming industry has killed itself off multiple times due to profit over-reach. I think we're headed down the same road again.
I have about 8 F2P MMO games on my computer now. Instead of having to choose which subscription to pay for now I can play them all!!
I'm not saying this isn't a win for valve all around, but you gotta consider their cost to run servers probably skyrocketed as more and more twelve year olds hopped on and started playing. I wonder what their actual bottom line is.
One of the major themes in alternate weapon in TF2 that they aren't necessarily better than the weapons they replace.
There are two weapons in the entire game that have clear upgrades. Those are the Medic's Bonesaw and the Soldier's Shovel.
I'll use the Soldier's Rocket Launchers as an example of weapons that are sidegrades. The rocket launchers are:
Rocket Launcher - 4 Rockets per clip. 20 rockets total. Rockets shoot slowly. Rockets have a good amount of splash area.
Direct Hit - 4 Rockets per clip. 20 rockets total. Rockets shoot quickly. Rockets do 20% higher damage. Rockets mini-crit airborne enemies. Rockets have 70% smaller splash area.
Black Box - 3 Rockets per clip. 20 rockets total, rockets shoot slowly. Rrockets have a good amount of splash area. Player gains 15 health per person hit.
The Liberty Launcher - 3 Rockets per clip. 20 rockets total. Rockets shoot quickly. Rockets have a good amount of splash area.
The Original - Identical to Rocket Launcher, but fires from the center instead of from the right.
Cow Mangler 5000 - 5 Rockets per clip. Unlimited ammo. Slower reload time. Rockets shoot slowly. Rockets have a good amount of splash area. Can not do critical hits. When your clip is full, right-click to shoot a charge shot (takes 3 seconds to fire, during which you move at 1/4 speed) which does mini-crits and sets enemies in its splash range on fire... but uses the entire clip of 5 rockets. All shots do 80% less damage versus buildings, but a charged shot disables buildings for 4 seconds.
GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
fremium model prey's on the inability of many people to not only add the micro transactions together
#idonthavefactstobackthisup, but when fremium games generate more profit, it's not because the same people end up paying more. It's because more people end up paying a bit. So, instead of me having to make large-ish (let's say 50 euros) investment on a game and hope that it's good, I can get a game for free or for a nominal fee (a couple of euros), play a while and if I like the game, occasionally buy something nice.
There are many advantages here: I get to personalize my games (if I visit a friend with same games that I have and try some of them out, I'll have a whole another experience!), I don't ever waste money on stuff I end up not liking, the publisher gets constant feedback on what kind of content the gamers are into and can provide new stuff based on that and most importantly... the very low cost of initial investment is wonderful. I have a large-ish group of friends and friend-of-friends that like to play together and not nearly everyone in the group is in a relatively well-paying job like the one I have. Yet, because of the this model, we can get into a new game every other week or so.
So... yeah. I really love the microtransaction model though I'm pretty confident that I can perform simple addition.
I would not call this implementation "Free To Win", as they offer no paid items that can't be obtained by putting in the time and effort. Thus it's a decent Free to Play implementation. If the freemium options aren't available erstwise, then I would definitely call it Free To win.
Mark Anthony Collins
I only started playing TF2 once it became f2p, to see what it was all about. The fact that you only had to spend like 5 bucks in the store to upgrade your account to premium status was tempting and no hard decision once I discovered after a few sessions that the game was really fun. I got to try out the game for free and saw it more as a way to support the developers of a game that I enjoy rather than spending money on useless virtual items that I couldn't care less about. Good job Valve.
Since the subject came up, I'm going to mention that EverQuest is going to launch their Free-to-Play program in about a week. (the original, EQ2 has been F2P for a while now) info is at http://www.everquest.com/free/ (also a new fresh server starting.)
I don't work for Sony, I just like (and play) EQ. In fact I work for a competitor.
I'm not a fan of the F2P model, I plan to keep my regular sub; but an MMO needs fresh blood to stay healthy, and I'm hoping this will boost the userbase.
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I already paid for this game, why should I have to pay again?
I don't mind them making it f2p after a long time as it means there are more players to play with, though having to pay again or be subjected to the "store" while playing is bullshit
I am mildly annoyed that I paid money for this when it was standalone and all I got was a stupid hat.
Or you could have bought any of the dozens of 'multiplayer' shooter games that have come out since the release of TF2 where there are no servers still up, no players, and no game to enjoy.
TF2 going F2P added a ridiculous amount of content and prolonged the playable life of the game by years. You don't have a game if nobody else is playing.
"We have to go forth and crush every world view that doesn't believe in tolerance and free speech." - David Brin
http://forums.steampowered.com/forums/showthread.php?t=2476390
http://forums.steampowered.com/forums/showthread.php?t=1774666
It's a shame that with that much increase and profit, Valve can't fix fundemental flaws they introduced.
Speaking about free to play business model and not mentioning League of Legends is just a failure.
(also City of Heroes and doubtless most other MMOs) are not Free to Play, they're Free to Try.
Drawing a distinction between a time limited, level capped or limited race/class trial is splitting hairs. If you don't care about levelling, you can play a limited time trial game (e.g. EVE) indefinitely just by starting a new account every month or so. The 'grind' back to the cap is essentially trivial.
But in either case, the time/level/class capped people can't compete with the premium players. That's not a bad thing, they bring value by providing an underclass to which the paying players can feel superior, but let's not pretend that a limited trial is the same as making the whole game free.
If you were blocking sigs, you wouldn't have to read this.
You are misinformed. You can play LOTRO to level cap entirely free. Paying will lessen the grind, but it's not a requirement. It's up to you how valuable your time is. Note that MMO expansions cost money for everyone, including subscribers.
Nostalgia isn't what it used to be.