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EA is forging into new territory of micro-transactions, they will give you the game for free, but everything in the game will cost you some cash. Others have waded into this water in the past, but the fact that EA is the one looking at it, is this income model becoming mainstream?
I have very mixed feelings about this plan. Here are some thoughts.
One of the strong advantages to this micro-transaction pricing scheme is that you can try before you really buy it. How many times have you shelled out anywhere from $19 to $60 on a game that turns out to be a flop. On the flip side, can you afford to fall in love with a game anymore? If I had to pay real money for every new building I downloaded in SimCity4 I would be in the poorhouse in real life. On the other hand, the micro-transaction model should force game designers to produce quality games. When you take the upfront cost off the table, the whole Hope-to-recoup-the-costs-before-the-game-reviews-hit-the-wire method that has sucked in billions from hopeful gamers goes away. Game developers will be awarded for quality games, and punished for crap. Now, the trick is the cost of micro-transactions. There is a fine line between profit and bleeding the end user dry.
Here is a story on this from the NY Times ...
Ever since John Riccitiello took over last year as chief executive of Electronic Arts, the video game industry bellwether, he has promised to revitalize the company with new games and new ways of reaching consumers. Now, that may be happening.
In a major departure from its traditional business model, E.A. plans to announce Monday that it is developing a new installment in its hit Battlefield series that will be distributed on the Internet as a free download. Rather than being sold at retail, the game is meant to generate revenue through advertising and small in-game transactions that allow players to spend a few dollars on new outfits, weapons and other virtual gear.
At a conference in Munich, the company intends to announce that the new game, Battlefield Heroes, will be released for PC this summer. More broadly, E.A. hopes the game can help point the way for Western game publishers looking to diversify beyond appealing to hard-core players with games that can cost $60 or more.
E.A.’s most recent experiment with free online games began two years ago in South Korea, the world’s most fervent gaming culture. In 2006, the company introduced a free version of its FIFA soccer game there, and Gerhard Florin, E.A.’s executive vice president for publishing in the Americas and Europe, said it has signed up more than five million Korean users and generates more than $1 million in monthly in-game sales.
Players can pay not only for decorative items like shoes and jerseys but also for boosts in their players’ speed, agility and accuracy. Mr. Florin said that while most users do not buy anything, a sizable minority ends up spending $15 to $20 a month.
Here are some of the leaked features of BattleField 3 from Digital Battle