Why Subscription Models Aren’t Dead Yet

There’s a discussion on The Elder Scrolls Online forum regarding the forthcoming game’s pricing model. Before we go further, I should point out that the game is known as TESO, which is way too close to Tesco for my liking, but for the sake of brevity, I’ll call it TESO. Anyway, the discussion is largely supportive of the pricing model and on the face of it, the pricing model looks historically like other MMO’s, with an upfront price for the digital edition of USD$59.99 or GBP£49.99 and after the first 30 days a recurring monthly cost of USD$14.99 or GBP£8.99.

However here’s the thing, that pricing model is largely out of date. Games launch this way and then within a year or two, they go to free play. That’s often how it works these days. I went through this with Star Wars : The Old Republic, it was a very similar model and it didn’t end well in terms of being a subscription model, however going free to play saved the galaxy, as reported in Massively at the end of March last year : GDC 2013: James Ohlen on how F2P saved SWTOR:

According to Ohlen, SWTOR was designed to be a subscription-based game, so any F2P option needed to still effectively support the service the way a sub game would. The most successful compensation came in the form of Cartel Packs. In the style of trading card games, these packs would give players random items that they could use in game. And just as in any good TCG, the items in the Cartel Packs could be traded with other players — this time on in-game auction house, the galactic trade network.

There’s part of the key to changing your model and it’s one Linden Lab should pay heed to but I’m not going to talk much about Second Life or Linden Lab in this post, I’ll save that for another post. There will be a little bit more about SL and LL but this post is mostly about TESO.

So with all the evidence staring TESO in the face about the lack of longevity of subscription based MMO’s, why are they going ahead with it? Well if anything, SWTOR leads the way. Initially there will be a big buzz and a lot of people engaging with the game, the cash will flow in and that’s a business model that is hard to ignore.

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Ebbe Altberg – What We’ve Learnt So Far

Ebbe Altberg has arrived with a bang in some circles, before he has even officially started work as the new CEO. His start date, I’m unreliably informed, is Monday February 10th 2014. I’m writing this for reference for future blog posts.

Inara Holmes has once again donned her deerstalker, puffed on her pipe and investigated the man to come up with a rather deep short profile on Mr Altberg. This time Inara has been able to demonstrate her science of deduction without having to call upon the assistance of Gray Of The Lab from San Francisco.

Ebbe was born in Sweden, the country that invented Blocksworld and the country next to the country that invented Lego. Unforunately Ebbe has so far been unable to convince Swedish super group Abba that they should perform inside Second Life for tips only. However give it time, Linden Lab has opened the door to a Viking invasion and those guys like to party.

Mr Altberg has previously worked for Microsoft (hooray), Yahoo! (boo) Ingenio (?) and BranchOut (??) who were linked to Facebook (Boooooooooo!). For full details, please read Inara’s informed post, carry on reading here for an uninformed post.

So far Mr Altberg seems to have been enjoying himself as the new found leader of the virtual revolution and other products and has been particularly active on Twitter, where you can find him under @ebbealtberg.

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New CEO Fallout – @SecondLie Retires From Twitter But @RebbeAltberg Is Born

Second Lie at Twitter Party

The arrival of Ebbe Altberg has already led to the end of one Second Life character on Twitter, with @SecondLie announcing his retirement in an afternoon/evening of excitement, hope, despair, bewilderment and surprise at the arrival of Ebbe Altberg as new CEO of Linden Lab.

The unexpected turn of events threatened to overshadow the optimism about the arrival of the new CEO, with fans of @SecondLie expressing shock at his retirement. Lie (real name SecondLie) refused to answer any further questions, but did point reporters, observers, bloggers and Lindens in the direction of a new kid on the twitter block, @RebbeAltberg.

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Ebbe Altberg Named As Linden Lab CEO

As people await a blog post, some with baited breath, I can non-exclusively reveal that Ebbe Altberg has been named as the new CEO of Linden Lab. The news was brought to my attention by a post over at SLUniverse by Ashur Constantine, who joined SLUniverse in February 2014 ….. and was making his first ever post ….. hmmm.

The news is however confirmed by reading Linden Lab’s press release on the matter. Rumours that Ebbe has been appointed CEO purely because he has Alt in his surname have been strenuously denied by unnamed officials.

The press release informs us:

Most recently prior to joining Linden Lab, Altberg was COO of BranchOut. Prior to that, he was part of the executive team at Yahoo!, most recently as SVP of Media Products. His more than 25 years of experience managing teams that create world-class products and services also includes leadership roles at Ingenio (acquired by at&t Interactive) and Microsoft.

There are more details about Ebbe on his bio on the Linden Lab website:

Ebbe Altberg comes to Linden Lab with more than 25 years of experience leading teams and creating software used by hundreds of millions of users. After graduating from Middlebury College he went on to work at Microsoft, where he spent most of his 12 years leading teams that created the world’s most popular productivity products such as Word, Excel, PowerPoint, and Office.

In 2000, Ebbe moved to Ingenio, Inc., where he headed up product and had a stint as interim CEO. As Chief Product Officer, he lead Ingenio to become an innovative telephony and marketplace company, which was ultimately acquired by at&t Interactive in 2007.

Ebbe then joined Yahoo! in Europe as VP Head of Audience, with responsibility for all consumer-facing products and affairs. After a couple of years he was promoted to SVP Media Products, a group of about 800 engineering and product people that created the Yahoo! homepage, news, sports, finance, and entertainment products and platforms.

Most recently, Ebbe went back to a small startup, BranchOut, where he was the COO and managed the teams building products for professionals such as BranchOut and Talk.co.

Alas Ebbe hasn’t yet made anything funky to put next to his name like the other senior executives have, but give it time.

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Second Life Has Orcs And Much Much More

There are some interesting comments on Mitch Wagner’s article about High Fidelity, which I blogged about yesterday. The comments demonstrate that some people don’t realise how vast Second Life is in terms of range of content and they also demonstrate that some people simply do not like the idea of an open ended platform.

The first comment I’ll highlight is this one:

Second Life would have fared better if it had appealed to MMORPG fans, the primary proven market for such activities. Philip Rosedale, you need orcs.

The thing is Second Life has Orcs! Second Life also has Elves, Wizards, Dragons, Halflings … whom you should be really careful around and all sorts of other weird and wonderful characters. Indeed my favourite Second Life event of the year is Fantasy Faire.

Kaylewuffel has a nice video from the Lumenaria Sim at Fantasy Faire 2013.

etheriaparrott has a video of The Atomic Kitties of Rynn Verwood and Lauren Thibaud on stage at the event:

Draxtor Despres covered the event in The Drax Files episode 4 and highlighted via his interview with Zander Greene how Second Life can be an excellent platform for charity fundraising.

I could go on and on … no really, I could, I love Fantasy Faire!

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