Wednesday, September 24, 2008

Choices CHOICES choiceS

Having spent many years analyzing the market and coming up with business models and approaches to market its nice to see that there is common ground out there and some of the experts are thinking similar. I have published the summaries but you can read the full article on Gamesutra. Its also worth noting that Min Kim of Nexon has also picked up on the big Media companies involvement which I have touched on in the past, although I think his point is countered very well by Petursson.

"Right now, the MMO industry is in flux, with much discussion over whether the subscription or free-to-play model is the correct one for ongoing projects. When you figure in the world market, things get even more complicated.

Gamasutra was at a panel at last week's Austin Game Developers Conference which featured Robert Ferrari (VP Business Development, Turbine), Hilmar Veigar Petursson (CEO, CCP), Nicolay Nickelsen (VP, Business Development, Funcom), Min Kim (VP of Marketing, Nexon America Inc.), and was moderated by Jessica Mulligan (COO, ImaginVenture SA). It delved into the complexities of the two models -- how are they performing, and what do users want this year?

Asked about the five year evolution of the MMO genre and its business models, the participants had this to say.

Petursson: "I think most companies will evolve ... I think a dual currency system is the most efficient way."

Ferrari: "Games will evolve to all platforms -- PC and consoles -- and you will see multiple payment methods, it's not one-size-fits-all."

Nickelsen: "I think also you need to look at the local aspect and you need to have local services."

Kim: "I think three to five years out, and we're starting to see it now, that the PC's going to make a hardcore comeback... I think that online will become mass market entertainment.... the kids who are playing Club Penguin five years out are going to become our players."

Petursson's parting shot: "I think we will see more companies like Nexon. It's not a small company, but it's a company that grew up in the industry... I don't see a lot of offline companies evolving."

In response to Petursson's complimentary words for Nexon, Kim replied, "The scary thing is the diversified media companies... you see Viacom starting it now, and Disney with Club Penguin... I'm not worried about the EAs, but the big media companies."

But Petursson said, "I am actually not worried about the diversified media companies... when I talk to them they are so unable to understand our business, which involves a direct relationship with consumers." He thinks they are too used to producing content and sending it out via linear channels to fully engage.

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