Thursday, October 13, 2005

Subscription Software Concept: Online Games Model

Hi All,

Currently the retail model for the majority of online games is one buys a boxed packaged game software. And then opens an account with the game publisher for that particular MMO game with a fee based subscription. However lately there has been more direct downloads to consumers of these MMO games. Skipping entirely the costly wholesale to retail store distribution and marketing line of software games. Each step of that distribution line more profits (revenues) get diverted from the game developer and publisher.

What if instead of either purchasing an MMO game title in a retail store. By continuing this trend of direct downloads from the game publisher for a subscription to the MMO. But instead of charging for the entire game upfront which often includes a free month of game play. Give the consumer the option to purchase the game via "Installments". So as with each month they pay their subscriber dues, another $5 dollars is added to their fee. This can be repeated each month or quarterly basis until the game is fully paid off.

Of course if a customer under this game payment and monthly subscriber model cancels his/her game account. They would fully owe any remaining monies that are unpaid in full for the game software. This may also include a "penalty fee" as well if a game publisher wants to jab a consumer as well.

So whether a MMO game subscriber pays monthly or quarterly (yearly subscribers don't count, unless you give them the game outright for free for a yearly fully paid up front subscription) the game publisher can expect an additional residual revenue stream of income. If choosing this payment model for an MMO game account subscriber.