Revenue Model Shifts in China - Now Subscription-Based

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Revenue Model Shifts in China - Now Subscription-Based

World of Warcraft News - NetEase and Blizzard have shifted the revenue model for World of Warcraft in China. Up to the shift, Chinese players paid in hour-by-hour increments. With the launch of the Legion expansion, Chinese players are now required to pay a monthly subscription up front in order to play. NetEase brought in $37M in August compared to only $8M in July, presumably as a result of the change in revenue generation.

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SBFord

blueturtle13 said:

Smart move and proof once again that the sub model continues to work, regardless of region.

Especially if it works in China by such a huge margin after a long history of hour-based game play. Pretty astonishing revenue boost from month-to-month with the new model.

laserit

SBFord said:

blueturtle13 said:

Smart move and proof once again that the sub model continues to work, regardless of region.

Especially if it works in China by such a huge margin after a long history of hour-based game play. Pretty astonishing revenue boost from month-to-month with the new model.

It will be interesting to see the numbers six months down the road. 

donger56

Just because it works in Asia doesn't mean it will work in the west. What game in the west has an hourly charge to play it? None, because that won't work in the west just like monthly subs don't work as well as they used to. Everything is either F2P or B2P with an optional sub for some games. Sub only games die quickly and don't get that big release boost from the cash shop like other games do. The sub only model is dead in the west and won't be returning. 

Mendel

Compared to hourly charges, the subscription rates must seem like a godsend to the Chinese player.  I'd even venture so far as to suggest that there will be individuals trying to play every hour in the month, just to achieve the absolute minimum cost per hour rate.  Oppressive mandatory rate replaced by a lesser mandatory rate yields more customers, thus more revenue.  If that's not BUS 101, it should be.

laserit

donger56 said:

Just because it works in Asia doesn't mean it will work in the west. What game in the west has an hourly charge to play it? None, because that won't work in the west just like monthly subs don't work as well as they used to. Everything is either F2P or B2P with an optional sub for some games. Sub only games die quickly and don't get that big release boost from the cash shop like other games do. The sub only model is dead in the west and won't be returning. 

You have some valid points. But things we think are dead, never to return have a way of coming back.

Aeander

blueturtle13 said:

Smart move and proof once again that the sub model continues to work, regardless of region.

Well, it works for World of Warcraft. Not so much all the new MMOs that go f2p within a year.

Also, this was a change from an hourly price model - the most archaic, unfriendly business model possible, which died alongside AOL.

laserit

Aeander said:

blueturtle13 said:

Smart move and proof once again that the sub model continues to work, regardless of region.

Well, it works for World of Warcraft. Not so much all the new MMOs that go f2p within a year.

Also, this was a change from an hourly price model - the most archaic, unfriendly business model possible, which died alongside AOL.

The F2P cash shop model supports a shit load of mediocre games.

Only the very rare few will become Rock Stars, although countless numbers will try.

Mendel

laserit said:

donger56 said:

Just because it works in Asia doesn't mean it will work in the west. What game in the west has an hourly charge to play it? None, because that won't work in the west just like monthly subs don't work as well as they used to. Everything is either F2P or B2P with an optional sub for some games. Sub only games die quickly and don't get that big release boost from the cash shop like other games do. The sub only model is dead in the west and won't be returning. 

You have some valid points. But things we think are dead, never to return have a way of coming back.

I think a picture of a buggy whip would be more appropriate, @laserit.  Bicycles will last as long as the Olympics keeps including them.



Well, maybe the buggy whip's fate is tied to the future of Harness racing.  Gambling seems to be pretty healthy, though.  So healthy that it may be eternal.  Maybe even healthier than the Olympics.

You may be right after all, @laserit.

NitemareMMO

Wonder how many will pass out trying to squeeze as many hours as possible from a sub and refuse to go eat and sleep.

Tecca

NitemareMMO said:

Wonder how many will pass out trying to squeeze as many hours as possible from a sub and refuse to go eat and sleep.

I see it as a way for more of them to relax and not worry as much about using every minute to its fullest potential. Hourly payments would make me play that way, monthly sub would make me feel like I have all the time in the world. 

Aeander

laserit said:

Aeander said:

blueturtle13 said:

Smart move and proof once again that the sub model continues to work, regardless of region.

Well, it works for World of Warcraft. Not so much all the new MMOs that go f2p within a year.

Also, this was a change from an hourly price model - the most archaic, unfriendly business model possible, which died alongside AOL.

The F2P cash shop model supports a shit load of mediocre games.

Only the very rare few will become Rock Stars, although countless numbers will try.

Even if I grant you that, "very few" has looked suspiciously like "none" this past decade. And none of this none has remained a subscription title.

laserit

Aeander said:

laserit said:

Aeander said:

blueturtle13 said:

Smart move and proof once again that the sub model continues to work, regardless of region.

Well, it works for World of Warcraft. Not so much all the new MMOs that go f2p within a year.

Also, this was a change from an hourly price model - the most archaic, unfriendly business model possible, which died alongside AOL.

The F2P cash shop model supports a shit load of mediocre games.

Only the very rare few will become Rock Stars, although countless numbers will try.

Even if I grant you that, "very few" has looked suspiciously like "none" this past decade. And none of this none has remained a subscription title.

IMHO when it comes to this genre. The industry is putting too much focus in one area while neglecting the most important things.

The cash shop with RNG model will run its course. That's not to say that it will mark the return of the subscription model, but something will take its place.

Automation will change and is changing many aspects of our economies. The games industry included.

Aeander

laserit said:

Aeander said:

laserit said:

Aeander said:

blueturtle13 said:

Smart move and proof once again that the sub model continues to work, regardless of region.

Well, it works for World of Warcraft. Not so much all the new MMOs that go f2p within a year.

Also, this was a change from an hourly price model - the most archaic, unfriendly business model possible, which died alongside AOL.

The F2P cash shop model supports a shit load of mediocre games.

Only the very rare few will become Rock Stars, although countless numbers will try.

Even if I grant you that, "very few" has looked suspiciously like "none" this past decade. And none of this none has remained a subscription title.

IMHO when it comes to this genre. The industry is putting too much focus in one area while neglecting the most important things.

The cash shop with RNG model will run its course. That's not to say that it will mark the return of the subscription model, but something will take its place.

Automation will change and is changing many aspects of our economies. The games industry included.

I don't think anything will take its place. I think what we'll see in the long term is a diversification of models due to an excess of competition. F2p, b2p, and p2p all feed into eachother and provide a spectrum of options for players. Maybe we'll even see uncommon models like company-wide subscriptions or new things like integration into general subscriptions (like Amazon Prime) or f2p with ingame ads. Certainly, I don't support the last of these for immersion purposes, but I expect more experimentation will happen on the business side of things.

Vesavius

blueturtle13 said:

Smart move and proof once again that the sub model continues to work, regardless of region.

Been saying the sub model is more than viable for years and years, it just took patience to watch the main market wise up to F2P and burn out on it at their own speed and start to catch up with what I and others have been saying.

The F2P carpet bagging bubble was just the VCs cashing in, they never gave a crap about us as consumers or gamers.

Sovrath

laserit said:

donger56 said:

Just because it works in Asia doesn't mean it will work in the west. What game in the west has an hourly charge to play it? None, because that won't work in the west just like monthly subs don't work as well as they used to. Everything is either F2P or B2P with an optional sub for some games. Sub only games die quickly and don't get that big release boost from the cash shop like other games do. The sub only model is dead in the west and won't be returning. 

You have some valid points. But things we think are dead, never to return have a way of coming back.

I totally wan to buy that bike!!!!!

Vesavius

NitemareMMO said:

Wonder how many will pass out trying to squeeze as many hours as possible from a sub and refuse to go eat and sleep.

This already happened under the old model... In fact, the most famous cases of things like this came from countries that pretty much only ran the old model. 

CrazKanuk

I don't think this is proof that the sub model is viable at all. What it does prove is that the sub model is more profitable than the F2P model....... if you have enough players to support it. 

laserit

Sovrath said:

laserit said:

donger56 said:

Just because it works in Asia doesn't mean it will work in the west. What game in the west has an hourly charge to play it? None, because that won't work in the west just like monthly subs don't work as well as they used to. Everything is either F2P or B2P with an optional sub for some games. Sub only games die quickly and don't get that big release boost from the cash shop like other games do. The sub only model is dead in the west and won't be returning. 

You have some valid points. But things we think are dead, never to return have a way of coming back.

I totally wan to buy that bike!!!!!

Retro is in, you can go and buy one.

I'm personally waiting for the banana seat with the stick shift between the balls

IggiePuff

donger56 said:

Just because it works in Asia doesn't mean it will work in the west. What game in the west has an hourly charge to play it? None, because that won't work in the west just like monthly subs don't work as well as they used to. Everything is either F2P or B2P with an optional sub for some games. Sub only games die quickly and don't get that big release boost from the cash shop like other games do. The sub only model is dead in the west and won't be returning. 

Well, none has an hourly charge now. But years ago Neverwinter Nights from AOL had an hourly charge and it was a very popular game. EverQuest was reported to be going with hourly charge but then decided to switch to monthly.

laserit

CrazKanuk said:

I don't think this is proof that the sub model is viable at all. What it does prove is that the sub model is more profitable than the F2P model....... if you have enough players to support it. 

The same is true for any model

CrazKanuk

laserit said:

CrazKanuk said:

I don't think this is proof that the sub model is viable at all. What it does prove is that the sub model is more profitable than the F2P model....... if you have enough players to support it. 

The same is true for any model

Yeah it definitely is. The difficulty is that WoW is being used as an example of how the subscription model is still viable when they probably, and it wouldn't be that far a stretch, have 10 times the number of subscribers as all other subscription games combined, lol. WoW is an anomaly. It's like a Russian judge who gives the Russian skater 10/10 even though she fell 10 times. That's why the Olympics throws these scores out  

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Tiller

blueturtle13 said:

Smart move and proof once again that the sub model continues to work, regardless of region.

If a game is good it's worth a sub model. But expect no cash shop items at all in the game. 0!

Kyleran

Torval said:

laserit said:

Sovrath said:

laserit said:

donger56 said:

Just because it works in Asia doesn't mean it will work in the west. What game in the west has an hourly charge to play it? None, because that won't work in the west just like monthly subs don't work as well as they used to. Everything is either F2P or B2P with an optional sub for some games. Sub only games die quickly and don't get that big release boost from the cash shop like other games do. The sub only model is dead in the west and won't be returning. 

You have some valid points. But things we think are dead, never to return have a way of coming back.

I totally wan to buy that bike!!!!!

Retro is in, you can go and buy one.

I'm personally waiting for the banana seat with the stick shift between the balls

They only look retro. They're not built retro. So people like the look of what was. That's about all we can conclude from that.

Er people buy and play games such as Wasteland 2, (Wasteland 3 going out for crowdfunding in fact) and Albion Online (clearly a Diabloesque looking MMO), what conclusion would you draw from that?

Same one I think, some people are still interested in older game designs, but updated for the modern era.