2K Looking At Micro-Transaction and Subscription Possibilities

by
Posted November 14th, 2008 at 8:13 am

Amongst discussion on how multiple companies including EA are attempting to combat the lost revenue from used sales comes more talk on the subject, this time from the head of Take Two Strauss Zelnick. The presentation at the BMO Capital Market’s Conference was accompanied by the image above which uses the example of 2K Sports’ MLB series and how they could benefit from micro-transactions.

When EA Sports canceled many of the PC offerings for this year I predicted a move towards free-to-play with micro-transaction and subscription based or advertising supported gaming in the future for the PC. It’s what has been done successfully in Asia with games such as NBA Street Online. While that shift has been used to counter piracy the same goals behind it could provide another way to compensate for the lost sales that are largely being caused due to the practices of Gamestop.

EA’s NBA Live 365 may be a blueprint of what 2K is looking at providing in the future with their mention of “updated player and game stats”. EA’s initial hope was to provide the feature free this year via code and then charge for it in the future. I think right now it has become apparent that while it is an excellent feature, few would pay for it on top of the regular purchase of the game. It is a fine line to walk in offering expanded content but avoiding alienating the general consumers.

EA Sports doesn’t have much of a different view from Take Two on where things are headed. In an interview with Peter Moore he stated that the future of gaming includes “the EA Freestyle label, subscription-based gaming, heavily online-oriented titles, content creation tools, and digital distribution.”

Ultimately it is the consumer that will decide the direction these companies take. If the game is good, and the offered additional content is good, people will probably support it. If the game is a disappointment or if the content isn’t compelling then people won’t pay for it and the companies will take notice of that.

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  • Josh

    Mark wrote:

    Online is overrated….the only reason I go online is for updated rosters…..It seems like game-developers are spending too much time making online components of the game instead of making gameplay a number-one priority….

    Agreed!

  • DaveDQ

    When you factor in the escalated price in videogames ($60), and the performance of such games, especially sports games, we are getting taken advantage of.

    If one of us purchased a new phone for say, $60.00 with a 2 year agreement with our provider, and they then told you, “The phone does have some issues and we are working on it, expect the fix to come soon.” What would be our impression?

    Two things have ruined gaming, frequency of games needing to be patched and gimmicky methods of getting profit after the initial purchase.

  • DaveDQ

    When you factor in the escalated price in videogames ($60), and the performance of such games, especially sports games, we are getting taken advantage of.

    If one of us purchased a new phone for say, $60.00 with a 2 year agreement with our provider, and they then told you, “The phone does have some issues and we are working on it, expect the fix to come soon.” What would be our impression?

    Two things have ruined gaming, frequency of games needing to be patched and gimmicky methods of getting profit after the initial purchase.

  • DaveDQ

    When you factor in the escalated price in videogames ($60), and the performance of such games, especially sports games, we are getting taken advantage of.

    If one of us purchased a new phone for say, $60.00 with a 2 year agreement with our provider, and they then told you, “The phone does have some issues and we are working on it, expect the fix to come soon.” What would be our impression?

    Two things have ruined gaming, frequency of games needing to be patched and gimmicky methods of getting profit after the initial purchase.

  • rondoman

    DaveDQ wrote:

    When you factor in the escalated price in videogames ($60), and the performance of such games, especially sports games, we are getting taken advantage of.
    If one of us purchased a new phone for say, $60.00 with a 2 year agreement with our provider, and they then told you, “The phone does have some issues and we are working on it, expect the fix to come soon.” What would be our impression?
    Two things have ruined gaming, frequency of games needing to be patched and gimmicky methods of getting profit after the initial purchase.

    EXACTLY!!!

    Plus, we see prices for games go up to 60 bucks, but overall quality go down.

    We are in tough economic times, people are gonna start going to the PC to game, or just say F gaming altogether.

    If game quality wasn’t such an issue, it wouldn’t be such a big deal. But the fact that so many games have so many problems, requiring numerous patches, and then on top of that the game companies want to nickel and dime us to death really pisses people off, me included.

    I also agree that they are focusing WAY too much on online crap. Hell, I never game online like the guy before posted. I only get updates and stuff. Tell gaming companies to focus on gameplay and tidying up crap that shouldn’t be present anymore instead of adding crap features that most of us could care less about.

  • rondoman

    DaveDQ wrote:

    When you factor in the escalated price in videogames ($60), and the performance of such games, especially sports games, we are getting taken advantage of.
    If one of us purchased a new phone for say, $60.00 with a 2 year agreement with our provider, and they then told you, “The phone does have some issues and we are working on it, expect the fix to come soon.” What would be our impression?
    Two things have ruined gaming, frequency of games needing to be patched and gimmicky methods of getting profit after the initial purchase.

    EXACTLY!!!

    Plus, we see prices for games go up to 60 bucks, but overall quality go down.

    We are in tough economic times, people are gonna start going to the PC to game, or just say F gaming altogether.

    If game quality wasn’t such an issue, it wouldn’t be such a big deal. But the fact that so many games have so many problems, requiring numerous patches, and then on top of that the game companies want to nickel and dime us to death really pisses people off, me included.

    I also agree that they are focusing WAY too much on online crap. Hell, I never game online like the guy before posted. I only get updates and stuff. Tell gaming companies to focus on gameplay and tidying up crap that shouldn’t be present anymore instead of adding crap features that most of us could care less about.

  • rondoman

    DaveDQ wrote:

    When you factor in the escalated price in videogames ($60), and the performance of such games, especially sports games, we are getting taken advantage of.
    If one of us purchased a new phone for say, $60.00 with a 2 year agreement with our provider, and they then told you, “The phone does have some issues and we are working on it, expect the fix to come soon.” What would be our impression?
    Two things have ruined gaming, frequency of games needing to be patched and gimmicky methods of getting profit after the initial purchase.

    EXACTLY!!!

    Plus, we see prices for games go up to 60 bucks, but overall quality go down.

    We are in tough economic times, people are gonna start going to the PC to game, or just say F gaming altogether.

    If game quality wasn’t such an issue, it wouldn’t be such a big deal. But the fact that so many games have so many problems, requiring numerous patches, and then on top of that the game companies want to nickel and dime us to death really pisses people off, me included.

    I also agree that they are focusing WAY too much on online crap. Hell, I never game online like the guy before posted. I only get updates and stuff. Tell gaming companies to focus on gameplay and tidying up crap that shouldn’t be present anymore instead of adding crap features that most of us could care less about.

  • rondoman

    http://www.gamesindustry.biz/articles/moore-ea-sports-to-appeal-to-casual-gamers

    EA sports to cater more towards casual sports gamers.

    F U EA!!!!

  • rondoman

    http://www.gamesindustry.biz/articles/moore-ea-sports-to-appeal-to-casual-gamers

    EA sports to cater more towards casual sports gamers.

    F U EA!!!!

  • rondoman

    http://www.gamesindustry.biz/articles/moore-ea-sports-to-appeal-to-casual-gamers

    EA sports to cater more towards casual sports gamers.

    F U EA!!!!

  • Paul

    Yeah, my gaming excitement has gone more towards the PC lately.

    Pasta, are all GameStops like that where you are? I know I haven’t had anyone offer me used games when I am about to give them more money for the used ones. They push the card/membership but I haven’t ever had an employee push a used game on me.

  • Paul

    Yeah, my gaming excitement has gone more towards the PC lately.

    Pasta, are all GameStops like that where you are? I know I haven’t had anyone offer me used games when I am about to give them more money for the used ones. They push the card/membership but I haven’t ever had an employee push a used game on me.

  • Paul

    Yeah, my gaming excitement has gone more towards the PC lately.

    Pasta, are all GameStops like that where you are? I know I haven’t had anyone offer me used games when I am about to give them more money for the used ones. They push the card/membership but I haven’t ever had an employee push a used game on me.

  • Justin tuck

    if the content isn’t compelling then people won’t pay for it and the companies will take notice of that.

    No it isn’t look at madden.

    People will buy anything this is the age of nickeling and diming gamers.

  • Justin tuck

    if the content isn’t compelling then people won’t pay for it and the companies will take notice of that.

    No it isn’t look at madden.

    People will buy anything this is the age of nickeling and diming gamers.

  • Justin tuck

    if the content isn’t compelling then people won’t pay for it and the companies will take notice of that.

    No it isn’t look at madden.

    People will buy anything this is the age of nickeling and diming gamers.

  • http://www.billingsgazette.com/h/blogs/catgriz catgrizinsider

    Gamestop has been doing this for how long? And just now the game companies are wanting to maximize profit? I guess it’s the economy, stupid. But it still reeks of selfishness. It would really suck if console games became digital downloads…with game companies getting all of the control (which is what they want).

    The user won’t be able to rent(or if it was possible, on a limited demo basis by the publisher that would probably restrict the user from most content or beating the game) or borrow games. The gamer that needs to pinch pennies won’t be able to buy used anywhere, let alone Gamestop. You may not even be able to take games over to play at someone else’s place. It would be a sad state of affairs. Even the most awful games will generate much larger sales than deserved because the only way to try out the game will be to buy it.

  • http://www.billingsgazette.com/h/blogs/catgriz catgrizinsider

    Gamestop has been doing this for how long? And just now the game companies are wanting to maximize profit? I guess it’s the economy, stupid. But it still reeks of selfishness. It would really suck if console games became digital downloads…with game companies getting all of the control (which is what they want).

    The user won’t be able to rent(or if it was possible, on a limited demo basis by the publisher that would probably restrict the user from most content or beating the game) or borrow games. The gamer that needs to pinch pennies won’t be able to buy used anywhere, let alone Gamestop. You may not even be able to take games over to play at someone else’s place. It would be a sad state of affairs. Even the most awful games will generate much larger sales than deserved because the only way to try out the game will be to buy it.

  • http://www.billingsgazette.com/h/blogs/catgriz catgrizinsider

    Gamestop has been doing this for how long? And just now the game companies are wanting to maximize profit? I guess it’s the economy, stupid. But it still reeks of selfishness. It would really suck if console games became digital downloads…with game companies getting all of the control (which is what they want).

    The user won’t be able to rent(or if it was possible, on a limited demo basis by the publisher that would probably restrict the user from most content or beating the game) or borrow games. The gamer that needs to pinch pennies won’t be able to buy used anywhere, let alone Gamestop. You may not even be able to take games over to play at someone else’s place. It would be a sad state of affairs. Even the most awful games will generate much larger sales than deserved because the only way to try out the game will be to buy it.

  • Justin tuck

    well sites like gamefly are making a huge profit because of this you have to understand pirating is at an all time high with torrents.

    The game companies have to make a living too.

  • Justin tuck

    well sites like gamefly are making a huge profit because of this you have to understand pirating is at an all time high with torrents.

    The game companies have to make a living too.

  • Justin tuck

    well sites like gamefly are making a huge profit because of this you have to understand pirating is at an all time high with torrents.

    The game companies have to make a living too.

  • rondoman

    Justin Tuck,

    You must work for the game companies or something.

    You spew a lot of stupid crap on this site. . . .

  • rondoman

    Justin Tuck,

    You must work for the game companies or something.

    You spew a lot of stupid crap on this site. . . .

  • rondoman

    Justin Tuck,

    You must work for the game companies or something.

    You spew a lot of stupid crap on this site. . . .

  • Matt

    Gamestop offers to sell the used copy over the new one because the cost of buying it off a gamer is less than the new copy from EA or whoever.

  • Matt

    Gamestop offers to sell the used copy over the new one because the cost of buying it off a gamer is less than the new copy from EA or whoever.

  • Matt

    Gamestop offers to sell the used copy over the new one because the cost of buying it off a gamer is less than the new copy from EA or whoever.

  • Justin tuck

    @ rondoman:
    yeah rondoman Im collecting? a check from some game company like your boy pasta.

    could you be anymore ridiclous with that statment.

  • Justin tuck

    @ rondoman:
    yeah rondoman Im collecting? a check from some game company like your boy pasta.

    could you be anymore ridiclous with that statment.

  • Justin tuck

    @ rondoman:
    yeah rondoman Im collecting? a check from some game company like your boy pasta.

    could you be anymore ridiclous with that statment.

  • Skihawks

    GameStop and other stores get all the profit from used games while zero goes to the publisher. That is why companies like GameStop push used games. Also, if you want to buy a game why buy it new if you can get it cheaper used?

    I have purchased used games from GameStop and have never had an issue with the discs. It is smart, not only for GameStop and other companies but for the consumer.

    I do disagree that games are getting worse because they need to be patched. Yes, it sucks that some games have issues when released but to get a free fix is not a bad thing. I have stated this many times before, there was a time when patches did not exist and you were stuck with what you bought.

    The thing is everyone bitches about a broken game but as soon as a patch is released to fix issues or add requested elements such as an excelerated clock, etc. the complaints cease.

    The other thing I find annoying is how people complain about in-game advertising. I could care less. We see it on television every day and it makes some games more immersive due to the added realism of seeing real product placement.

    The cost of developing games has increased and as consumers we have been spoiled. To have only a $10 increase on games in the past 18 years is incredible.

    I am not a fan of micro-transactions but I would pay for some content. I will not pay for roster updates or extra options for create-a-player. That should be a part of the game. However, if they offered extras that had little to do with the gameplay I would consider a purchase depending on price.

    Things that should be off limits include extra uniforms, patches, CAP extras, etc. Extra stadiums and classic teams I would drop a little for as long as the real players were on the teams and not numbers.

  • Skihawks

    GameStop and other stores get all the profit from used games while zero goes to the publisher. That is why companies like GameStop push used games. Also, if you want to buy a game why buy it new if you can get it cheaper used?

    I have purchased used games from GameStop and have never had an issue with the discs. It is smart, not only for GameStop and other companies but for the consumer.

    I do disagree that games are getting worse because they need to be patched. Yes, it sucks that some games have issues when released but to get a free fix is not a bad thing. I have stated this many times before, there was a time when patches did not exist and you were stuck with what you bought.

    The thing is everyone bitches about a broken game but as soon as a patch is released to fix issues or add requested elements such as an excelerated clock, etc. the complaints cease.

    The other thing I find annoying is how people complain about in-game advertising. I could care less. We see it on television every day and it makes some games more immersive due to the added realism of seeing real product placement.

    The cost of developing games has increased and as consumers we have been spoiled. To have only a $10 increase on games in the past 18 years is incredible.

    I am not a fan of micro-transactions but I would pay for some content. I will not pay for roster updates or extra options for create-a-player. That should be a part of the game. However, if they offered extras that had little to do with the gameplay I would consider a purchase depending on price.

    Things that should be off limits include extra uniforms, patches, CAP extras, etc. Extra stadiums and classic teams I would drop a little for as long as the real players were on the teams and not numbers.

  • Skihawks

    GameStop and other stores get all the profit from used games while zero goes to the publisher. That is why companies like GameStop push used games. Also, if you want to buy a game why buy it new if you can get it cheaper used?

    I have purchased used games from GameStop and have never had an issue with the discs. It is smart, not only for GameStop and other companies but for the consumer.

    I do disagree that games are getting worse because they need to be patched. Yes, it sucks that some games have issues when released but to get a free fix is not a bad thing. I have stated this many times before, there was a time when patches did not exist and you were stuck with what you bought.

    The thing is everyone bitches about a broken game but as soon as a patch is released to fix issues or add requested elements such as an excelerated clock, etc. the complaints cease.

    The other thing I find annoying is how people complain about in-game advertising. I could care less. We see it on television every day and it makes some games more immersive due to the added realism of seeing real product placement.

    The cost of developing games has increased and as consumers we have been spoiled. To have only a $10 increase on games in the past 18 years is incredible.

    I am not a fan of micro-transactions but I would pay for some content. I will not pay for roster updates or extra options for create-a-player. That should be a part of the game. However, if they offered extras that had little to do with the gameplay I would consider a purchase depending on price.

    Things that should be off limits include extra uniforms, patches, CAP extras, etc. Extra stadiums and classic teams I would drop a little for as long as the real players were on the teams and not numbers.

  • Skihawks

    Uh, that should be accelerated….Brain cramp

  • Skihawks

    Uh, that should be accelerated….Brain cramp

  • Skihawks

    Uh, that should be accelerated….Brain cramp

  • Matt

    I don’t think that the fact that downloading patches is easier now and the fact that more games need patches is a coincidence. I think companies are more willing to put a game out with issues and just patch it later, as opposed to pushing it back, which almost never goes over well.

  • Matt

    I don’t think that the fact that downloading patches is easier now and the fact that more games need patches is a coincidence. I think companies are more willing to put a game out with issues and just patch it later, as opposed to pushing it back, which almost never goes over well.

  • Matt

    I don’t think that the fact that downloading patches is easier now and the fact that more games need patches is a coincidence. I think companies are more willing to put a game out with issues and just patch it later, as opposed to pushing it back, which almost never goes over well.

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