Slashdot Mirror


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.'"

29 of 196 comments (clear)

  1. Hats off to Valve by decipher_saint · · Score: 5, Funny

    Congratulations guys ;-)

    --
    crazy dynamite monkey
  2. Re:freemium only works on stupid people by The+MAZZTer · · Score: 5, Insightful

    I only paid like $30 for the Orange Box when it came out. Valve has given me above and beyond my money's worth over the past 4+ years so I have no problem buying a key every so often to pay them back.

  3. We have a winner by LostCluster · · Score: 5, Insightful

    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.

    1. Re:We have a winner by Anonymous Coward · · Score: 3, Insightful

      giving the core item away and selling the addons has always worked

      FTFY

      See razors & blades as prior art.

  4. Re:freemium only works on stupid people by Truekaiser · · Score: 4, Insightful

    i know this is trying to be a troll but he is correct. the fremium model prey's on the inability of many people to not only add the micro transactions together. but also disrupts how people gauge the 'value' of the product by infusing emotional attachments into the mix.

  5. Pay to win by Omnifarious · · Score: 4, Insightful

    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.

    1. Re:Pay to win by Opportunist · · Score: 5, Informative

      When I heard TF2 is going f2p I was fearing a p2w system, akin to many other f2p games where you are essentially the "product" for those that dump money on the makers because your tools, your weapons, your equipment just cannot hold a candle to theirs and you're, essentially, akin to some rather smart bot on easy difficulty level.

      Valve solved the problem fairly well. As far as I can tell, you can have all the items for free that someone who spends money can have (well, aside of some vanity items without any effect in game). What happened is that you can either dump money on them to get the weapon you want NOW or you wait for the random system to drop one on you.

      Also, the weapons in TF2 are not like in most other games where you don't touch your "newbie" gun anymore once you got something better. The fun part is that you don't get more powerful with more choice, you just get more versatility and more choice for certain situations. Pretty much every item that gives you some bonus in one area has some rather nasty drawback. A gun that slows the enemy does less damage, a rocket with more direct damage does less splash damage, a sniper gun that does more damage uses tracer rounds and gives away your position... you get the idea.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  6. The key to all this... by deciduousness · · Score: 5, Insightful

    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!

    1. Re:The key to all this... by brainzach · · Score: 4, Informative

      Paying doesn't mean you are lazy.

      Time is money. Maybe someone with a busy life doesn't want to spend 10 hours getting a $5 dollar item for free when they make $60 an hour in the real world.

    2. Re:The key to all this... by DreadPiratePizz · · Score: 4, Insightful

      The problem with this line of thought is that you've ALREADY decided to use your time for leisure and not for making money. There's no opportunity cost there; by playing the game you've already committed yourself to not making money. So you could either not make money and not have to pay, or you could not make money and have to pay. Which sounds better?

    3. Re:The key to all this... by Overzeetop · · Score: 3, Insightful

      Actually, it means that if you don't have lots of free time, or prefer not to spend an inordinate amount of time in the game, you can still have a complete, fulfilling experience, leaving some of the drudgery time wasters behind. I means you can do more of the fun stuff with the time you spend.

      --
      Is it just my observation, or are there way too many stupid people in the world?
  7. Re:what about by Anonymous Coward · · Score: 4, Informative

    Those who bought the games all won a very awesome, useless bagde!!

  8. business school 101 by slew · · Score: 5, Informative

    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).

  9. Re:what about by AvitarX · · Score: 4, Insightful

    You got to play the game a lot earlier.

    --
    Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
  10. Re:what about by Anonymous Coward · · Score: 5, Informative

    Also the ability to play the game up to 4 years prior to the f2p people. And the ability to actually trade items and get vanity stuff (if thats your thing)

  11. Re:what about by Anonymous Coward · · Score: 5, Insightful

    Yeah! All we got was four years of the best multilayer game on the planet! And what was that bullshit with it being bundled with Portal and Half Life 2: Episode 2? Who has even heard of those games!? Now people can get it for free? I'd have just waited if I'd known! RIP OFF RIP OFF RIP OFF! And what's with people discounting older games? They should have to refund the difference to me! It's not fair!!

  12. But it must be seen in context. by Qwertie · · Score: 3, Insightful

    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.

  13. Re:freemium only works on stupid people by MightyYar · · Score: 5, Insightful

    prey's on the inability of many people to not only add the micro transactions together. but also disrupts how people gauge the 'value' of the product by infusing emotional attachments into the mix.

    Screwing with our brain wiring is sort of how video games (or board games, for that matter) get us to buy them in the first place. There's nothing rational about buying a video game for $50 and then wasting tons of time playing it - it's a purely emotional experience. If running around smashing ogres is what gets your endorphins going, great. If buying Farmville charms does it, who is to say that emotional response is any worse?

    Now's when people will start in with this-or-that study that shows that video games sharpen this-or-that skill, as if that's why they bought the game!

    --
    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  14. Re:freemium only works on stupid people by oddjob1244 · · Score: 4, Interesting

    Valve's freemium model is different. The paid content doesn't give you a huge advantage over the free content. Most of the addons are cosmetic and the weapons are balanced or worse than the stock weapons. You're still a competitive player with the free version of TF2, and if you play for a reasonable amount of time the paid content drops randomly anyway. Even if you wanted to sink a bunch of cash into TF2 to be better than everyone else, you can't. I mean, even the paid items can't be crafted.

  15. Re:freemium only works on stupid people by Truekaiser · · Score: 4, Insightful

    no the humble indie bundles are 'pay what you want' the fremium model is called fremium because it's nicer then the actual description. 'pay to win'. the fremium model is designed to give those who don't pay a lesser experience then those who willingly ignore simple addition and pay for a weapon here(10 dollars), a perk there (12 dollars), double experience(10 dollars), unlocking classes(15 dollars), etc.

    any way, anyone who DOES pay only ONE cent on a 'pay what you want' IS ripping them off. since they are giving you full, unhindered my any sort of these rip off schemes, games. on the good faith you give them a good amount of money. I pay more then the average for linux which in it's self almost always almost double what window's users pay.

  16. Re:freemium only works on stupid people by marnues · · Score: 4, Insightful

    So different people value different items in game differently, ergo the system is broken? Certainly there's a psychological factor involved with many small purchases vs 1 large purchase, but suggesting that people need to value a game purchase the same as many micro-transactions is ludicrous. Sounds like old-man syndrome.

  17. Re:freemium only works on stupid people by marnues · · Score: 3, Insightful

    If a game is pay to win, it'll eventually lose it's customer base. You may have noticed that TF2 is explicitly trying not to be pay-to-win. I'm not a user, so I don't know, but at least they are trying. And eventually a functioning model where game designers are encouraged to improve the game while gamers can't just "pay to win" will develop.

  18. Upgrade weapons are not necessarily better by VGPowerlord · · Score: 4, Informative

    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
  19. Re:freemium only works on stupid people by Hadlock · · Score: 4, Insightful

    You're forgetting the fact that without a player base, a game dies. Particularly multiplayer, which is all that TF2 is. By introducing it as F2P, Valve probably quadrupled the player base overnight. Not only that, but they introduced them in to a game with hundreds of bugfixes, content updates and major graphical overhauls. All of which had already been paid for. Even while most of those freepers will never buy anything in the store, they provide the much needed player base for those who are spending money in game to play with. They're mainly playing on third party servers, so by opening up the game to anyone, they've increased the game's perceived value at no additional cost to valve or the end user, while allowing the game's popularity to flourish.

    --
    moox. for a new generation.
  20. Re:freemium only works on stupid people by VGPowerlord · · Score: 4, Insightful

    The paid content doesn't give you a huge advantage over the free content.

    So it gives you a minor advantage over the free content?

    We're talking about TF2 still, right?

    The thing about "paid content" in TF2 is that you can get any of the non-cosmetic items over time, as you get 6-8 random weapons per week. There are also 27 weapons (3 per class) that can be unlocked through achievements. Weapons can also be crafted, but I'll be honest: It's better to wait for a random drop, because 6-8 items a week makes it take a long time to craft even one weapon, let alone multiple.

    The major problem with f2p accounts is that there are restrictions on them until you buy your first item from the store. In USD, the cheapest item is $0.49, but Valve has a minimum of $5 for adding funds to your Steam wallet... however, you can use the remaining $4.51 towards anything on Steam, including games.

    My problem with freemium even when done "right" or whatever you want to call it is still is unacceptable to me at a fundamental level:

    I -do- not want to be confronted with real life purchasing decisions every few minutes while playing games. Period. I don't want to be dropped into a "store" everytime I die. I don't want to be prompted to buy something everytime I start up, and every time I quit, and every time a new level loads.

    I've never had a TF2 free account, but from my understanding is that it bugs you once when you start the game with one of the game's characters having a text bubble mentioning it on the main menu. This is the only time the store is mentioned. other than having a button on the main menu for it. This text doesn't appear if you've ever bought anything from the store or bought TF2 itself from a store (or bought the Orange Box from a store or through Steam).

    That saod, I don't mind expansion packs. 20 new tracks and 5 new cars for $10 bucks or whatever is perfectly fine. But don't advertise it in the game so that I have to explicitly decline buying it every time I play... and don't break it up into micro-transactions... $1 per track, 1$ per car... I don't want to excert the mental process of deciding is this car worth a buck, is this car worth a buck, is this car worth a buck to me... I just don't.

    When TF2 has new weaponry come out, they sell them as sets along with related cosmetic items, if you really want to pay for them. The catch is that they're ridiculously overpriced... and usually they're added to the drop system at the same time they come out. So, unless you really want the cosmetic items, there's little point in buying them.

    And don't have me competing with people in the expansion pack cars if they are anything more than just skins.

    Remember even "Situationally better" is still better if you get any control over the situation, which of course, unless you are an idiot... you always do.

    I believe I've already addressed this point.

    But more to the point, the way items are balanced in TF2, a lot of the times they're different rather than strictly better. One of the more controversial items from the Christmas 2011 update was the Spy-cicle.

    The Spy-cicle is a melee weapon for the Spy... all Spy melee weapons do instant-kill backstabs. Note: Spies can disguise as enemy players, which becomes important in the description below.

    The Spy-cicle prevents the usual death screams from players, but instead makes a freezing sound and leaves an ice statue behind instead of a corpse. It can also be used to prevent fire damage (and makes the extinguishing sound when this happens) for 2 seconds at the expense of the Spy losing the Spy-cicle for 15 seconds.

    The thing is that its upsides and downsides are tied together. Sure, I can prevent fire at the expense of being able to instant-kill b

    --
    GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
  21. Everquest (classic) is about to go Free to Play. by Kaenneth · · Score: 3, Informative

    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.

  22. Re:what about by FunPika · · Score: 3, Funny

    That makes me wonder what the reaction of the last person who ever bought TF2 on Steam was when it went F2P....probably something like "WHAT THE FUCK? A $20 HAT?".

    --
    After years of not using a signature, I am going to make one to say the following: Fuck Beta
  23. Re:freemium only works on stupid people by Kreigaffe · · Score: 4, Insightful

    Yeah.

    Hats don't help you win.

    What you describe isn't a competitive game but a social one -- collecting meaningless bits of fluff that look neat but serve no purpose.

    Pay to win implies that forking over money gives you an advantage over players who haven't. Hats confer no such advantage. You just mad.. for some reason I can't even begin to understand.

    --
    ... still waiting for this free-as-in-beer free beer I keep hearing about. :|
  24. Re:freemium only works on stupid people by NemosomeN · · Score: 5, Informative

    I play TF2 quite a bit. Nothing that can actually give you an advantage is buy-only. This includes someone else buying something, and you trading for it. You can get every game-changing item without paying a cent. I bought the game, so I have never had a free-only account, but it's my understanding that you need to have a premium account to trade, which means you have to spend at least 50 cents on a item. Once you've done that, however, you can basically get any game-changing item you want. Things randomly drop while you are playing, but there are 9 classes. Trade any two weapons, and you can get any one weapon you want, generally. It is VERY easy to become competitively equipped with one class, and only takes a month or so of playing to become competitively equipped for all classes you would likely play regularly. TF2 is without a doubt the model of Free-to-Play gaming, from a business perspective. I have bought a few keys, but the impact has been nothing but cosmetic.

    --
    I hate grammar Nazi's.