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MMOs Are A Risky Business

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Posted May 2, 2008 - By Patrick Roche-Sowa

We all know that World of Warcraft thas made a lot of money. Speculation is that since the game's launch, it's taken in $1.4 Billion in subscription fees. But according to Next-gen.biz, not only is that an arduous goal to reach, the overhead costs alone can make a financial analyst go pale. To top it all off, they pretty much say there's no way to predict if a game will be successful either. Awesome.

The article is very wordy, but well written and informative. Financial analysis aside, the mentalist expressed from the side of making an MMO as opposed to playing it is astounding. When you talk about overhead costs falling somewhere inbetween 50 and 70 percent of the entire subscription income from a game, that's not exactly a pretty picture, showing the level of dedication these developers have. The article goes on to discuess the future of scubscription entertainment, theorizing that we'll be seeing much more from microtransaction economies in the next 5 years. I know I've been living in a microtransaction economy ever since I started working on TheFeed last year. OH!

Next-Gen.biz - MMOGs: Risk vs. Reward

 

Tags: Videogames
MMOs Are A Risky Business
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