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Good read: Doubles revenue after going free

Discussion in 'Making Money' started by SEO20, Oct 8, 2010.

  1. SEO20

    SEO20 Elite Member

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    Turbine?s revenue from its online role-playing game Lord of the Rings Online doubled since it moved from a subscription model to a free-to-play model earlier last month, the game?s executive producer Kate Paiz said at GDC Online 2010 today.

    Lord of the Rings Online is the second massive multiplayer online role-playing game, or MMORPG, that Turbine has shifted to a free-to-play model and has seen substantial revenue growth. Revenue for its first experiment, Dungeons and Dragons Online, jumped by about 500 percent after Turbine shifted the game to a free-to-play model. About 20 percent of Lord of the Rings Online users that quit have since returned after the game went free-to-play as well, with a 400 percent increase in the total number of players, Paiz said.

    Here?s how the free-to-play, or ?freemium?, model works: players are able to play online games with persistent worlds like Lord of the Rings Online for free, but pay for additional perks like armor or becoming more powerful at a quicker pace. Turbine is one of the first to transition its games from a subscription model ? a model both Lord of the Rings Online and Dungeons and Dragons Online originally used ? to a freemium model and seen significant revenue growth.

    http://venturebeat.com/2010/10/08/lotro-revenue-doubles-f2p/
     
  2. SEO20

    SEO20 Elite Member

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    Freemium seems to be the new black. It totally makes sense. We should adapt some of this to our line of work.
     
  3. ShadeDream

    ShadeDream Elite Member

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    This is nothing new and certainly not a revolution. lol
    Take for example RuneScape, it has always been free and it also has a premium subscription which is the money maker.
     
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  4. SEO20

    SEO20 Elite Member

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    The new stuff is that the ENTIRE game is free (not just a few levels). If you want added extras you got to pay. What Skype did years ago - and works pretty good.
     
  5. ShadeDream

    ShadeDream Elite Member

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    RuneScape was and I think still is entirely free too, well except for the members world but that's another thing. It's not like an extra level or anything it's just access to more places and features. Both free members and premium members can commute in the same world, it's just that free members don't get access to further maps of the game. Well, either way, it's the same business model, give them something free and in return get more premium subscriptions then you would have if it was all paid. Travian, another browser game, does the same thing, entire game is free, you only pay if you want to do stuff at a quicker pace etc.
     
    Last edited: Oct 9, 2010