In recent days, there’s been a lot of buzz about the Free-to-Play business model and how it’s the latest and greatest thing for online PC games.
I totally agree with this, but truth be told, the Free-to-Play model entered into the US market around four to five years ago; so why the hype now? If Free-to-Play is indeed the next best thing for online PC games, why is it that so many major media outlets are reluctant to entertain story opportunities involving Free-to-Play games? Is this due to negligence on the part of the game publishers? Are they not effectively marketing their products? Or do the media outlets have a preconceived, tarnished outlook on the free-to-play industry itself? I think more likely than not it is the latter.
It is my personal opinion that the Free-to-Play industry needs to shape up and perform an overhaul on its image. While the various companies involved are independent of each other, they share a collective reputation as a whole.
The damage that has been done to the image of free-to-play games is evident when the first response from consumers regarding a new free-to-play title goes something like this, “Oh, this is another crappy Asian MMO grinder, no thanks.” Why would people make such an assumption when they’ve never played the game? Why do they feel the need to profile in such a manner? I think fault lies on some of the early forefathers of the free-to-play industry. Giving credit where credit is due, it’s great that these entrepreneurs spearheaded the immigration of the business model. However, it is unfortunate that emphasis was placed on quantity and not quality. These early free-to-play titles were usually riddled with bugs, poor localization, and bad customer support; leaving the user with an unpleasant experience and a bad aftertaste. The user is then left to conclude that this is why the game is free; poor quality equals free game, thus a stereotype is born.
The same thinking seems to have permeated into the media outlets in the industry. When we recently launched our new title Perfect World International in North America, many doors were closed in our face with various representatives telling us, “It is our policy not to review free to play games.” If the buzz is true, and the Free-to-Play model is truly the next best thing, why aren’t media outlets clamoring all over free-to-play games, beating down developers’ door to get the latest scoop? How can this model flourish when it’s stunted even before it can start to grow? As part of the Free-to-play Industry, I believe we must take a stand and re-educate people on the concept of free-to-play games. As an industry, we need to all start providing high-quality, polished, and properly localized games in order to do away with the old stereotype.
I believe in the Free-to-Play model. It is a great alternative to the traditional subscription based business model and gives users the freedom to choose. Users can choose to play any game they, all completely free of charge, and only commit real money if and when they feel like it. The option is always in the user’s hands. Many game developers think that once a game is converted to include micro-transactions, gameplay is broken and the overall balance becomes disrupted. I don’t think this is true; I see it more as of time versus money. People who have a standard 9-to-5 may have more money to spend but have less time to play the game. People without a 9-to-5 may have more time to spend in the game time but less cash on hand.
This is where the cash shop comes into play. Common items that can be found in most free-to-play game’s cash shops are items that can speed a character’s progression within the game. Utilizing these items, a person who has less time to play the game can remain competitive with an individual who has more time to allot. Ultimately, it’s a balance between game progression, time spent, and money spent. For example, in Perfect World International, we even provide an internal auction system that allows users to convert money earned from within the game to cash shop currency. That way, none of the cash-shop items remain exclusive to only those that have money. The end result: a paying user & a non-paying user can have the same gameplay experience.
In regards to the Free-to-Play industry itself, Eastern developers shouldn’t be the only ones contributing to the experience. I would encourage Western developers to pay heed to this burgeoning industry. According to a recent MMO study conducted by Parks Associates:
“Fourteen percent of gamers not currently playing MMORPGs would be interested in playing if they could play for free. Only 2% of gamers from the same group were interested in adopting an MMORPG with the traditional subscription-based model. The good news for MMORPG companies is they can recoup their investment over time through micro transactions, where game publishers and operators make money through sales of in-game items.”
So for the Free-to-Play publishers in the US that are importing games from the East, take note that the market is starting to get competitive, and the bar is being raised on the quality of the games. Some of the current titles are even up to par with some of the dominant pay-to-play games. And to the developers in the West - understand that this business model is quite profitable and when executed correctly, adopting this model will result in more users and maybe even a higher ARPU. Raise the level of service, raise the standard of the games, and soon enough the Free-to-Play to model is going to give subscription-based games a run for their money.
Prior to joining Perfect World Entertainment as Director of Operations, Yoon entered the Free-To-Play market as a Producer at Gala-Net Inc., where he led Gala-Net's flagship title, Fly for Fun. As a Producer, he was in charge of marketing, sales, product management and operations for one of the most successful free to play games in North America. Earlier, he began his video game career working at Sony Computer Entertainment of America as an Online QA Lead analyst.