The Economy of FREE

FREE, 29 holiday song downloads on Amazon. You clicked.  I know you did.  It's ok, I'll wait for you to get Silent Night playing in the background before you come back to read this post.  FREE is hard to resist, especially with no strings attached.  FREE is also worth money, because out of the hundreds of people that download a FREE song, some will end up buying one.

Gamasutra has some hard numbers: 58% Of PlaySpan Users Buy Goods From Free-To-Play Games

And not only did free-to-play games see the highest purchase penetration among users, they also generated the most money on a per-user basis. The average user's expenditure on publisher-sold free-to-play digital goods over the course of 12 months was $75, compared to $60 for MMOs, and $50 for social network games.

F2P games, with micro transactions, serve all levels of investment from players. There is no barrier to entry because its free to play, increasing the potential audience. Those willing to spend very little, can still access the game, earning money from a market segment that the subscription model misses. Those willing to pay more are allowed to do so and are not capped at their monthly subscription cost. Both end up supporting the ability for free riders to hitch on at no cost.  A free rider being just another sales opportunity.

World of Warcraft has forever cemented the subscription model as valid. F2P games are quickly validating micro-transactions.  This is not an argument that F2P is better than the subscription model. It shows that the F2P model is working and that those people screaming about $10 horses are falling behind the times. Also, it shows that advertising can be done with the product, not flashy Mr T commercials (as epic as they are).  That's a win for the customer as we get a free game to play, no strings attached.

Allods Online: Fatigue is pretty smart

The fatigue system in Allods Online is pretty smart.  Players have a fatigue pool that is filled every time they gain experience.  Fatigue is gained on a 1 to 1 basis to experience and is displayed as the blue portion of the experience bar. At any time, fatigue can be turned in at an innkeeper for experience (also on a 1:1 basis).  The fatigue pool is limited and only so much can be gained in a single day.

This is not immediately obvious, but when fatigue is maxed out, a player is effectively cut to 50% of their normal experience gain.  However, Allods does this in a very smart way which I agree wholeheartedly with.

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DISQUS comments fixed! Yay!

@DISQUS has helped me identify and remove the offending java script that was causing comments to fail on heartlessgamer.com. Everyone should be able to post without issue now, guest or not.

Please give them a try below.

Micro-transactions and Battlefield Heroes Beta

EA Dice made some unpopular changes to the pricing model in the free-to-play (F2P), but supported by micro-transactions Battlefield: Heroes. Ars Technica has an article with the basics:

You could buy certain items to give yourself an edge, sure, but it was just as easy to earn in-game Valor Points (VP) to purchase weapons and widgets for use in the game. Many gamers did just this, earning VP in their regular gaming session without ever paying a dime. Others made a few purchases here and there to round out their items.

With micro-transactions all the rage right now, this has created a shit-storm around the blog-o-sphere. I find myself having to step in and defend the unpopular view.

Heartlessgamer.com Giveaway: Allods Online Beta Keys

Sorry, ALL KEYS ARE GONE!

I will update this post if I receive any more keys.

On Monetizing MMO Blogs

Recently, I asked for some feedback on the site, as well as opinions on MMO bloggers monetizing their blogs.

First, I run advertisements in three forms on this blog currently: in-line text ads, search traffic only ads, and referral links. The first two are powered by Chitika and pay per click. The referral links are to Amazon.com and pay a percentage of any purchases made via that link.

What do you need the money for?

The biggest question that people ask me is what I do with the money I earn. The blog is free to host on Google's Blogger, so there are no web costs (outside of an annual $10 domain registration fee). And it's pretty obvious I don't make my living doing this.

I use the money to pay for some of my gaming. When my blog was more popular (my traffic is down 50%+ this year), I made enough for a monthly subscription to an MMO. Recently, I have used it to micro-transact in games like Battlefield Heroes and Domain of Heroes.

However, since I've not played a subscription game in a while, I have pocketed a good amount of the money made (actually its sitting in my Paypal account). My most recent game purchases have been covered by bonuses I've gotten from work.

The Amazon.com referral links pay out via Amazon gift certificates. When I earn enough for my first gift certificate there, I will purchase more games, books, and movies to write about on this blog.

For the most part, the money earned here can be viewed as an investment back into the blog. However, it still leaves me sitting on a pile of cash that I haven't spent and I am going to work out a percentage to donate to Child's Play (my favorite charity). Going forward, charity will have a lot to do with the money made here after my minimal new web costs are covered (I am bringing some new stuff online in the near future).

Feedback

Surprisingly, most people that left feedback were fine with bloggers monetizing their blogs as long as it wasn't intrusive or contradicting(for example, gold seller ads when I am against gold selling). Chitika has been good about running legit advertisements, but they rarely match search ads to anything my readers would be interested in.

The Amazon.com referral links are more targeted. If I talk about a game, I will usually link to the games page on Amazon. If I review a book or movie, I will also link to Amazon. Or when Amazon runs deals like $3 in FREE MP3s, I will link to the promotional page and collect referrals as people cash in the free codes. This is hit or miss, but is the least intrusive of all advertising and the most honest.

With the feedback gathered, I think I am going to move towards straight Amazon.com referral-based advertising and be more open about my links. Along with the charitable giving, I am hoping this honesty will spur some purchases!

Lastly, I am going to take down the in-line text ads, as well as the search based ads from Chitika on the main page. I'm always open to advertising opportunities, so some form of automated advertising may return in the future.

DISQUS fix, need testers

Update: 4 Dec, 2009 - Thanks for the help so far. If you are seeing "There was an error with your submission. Please make sure you are actually logged in." as a guest, I am working on it.

I have worked with @DISQUS to resolve some issues with DISQUS comments on the site. I am trying to find out from people that have been having problems if it is any better. So if everyone could please try and leave a comment here for testing, it would be appreciated.

Initial Impressions: Allods Online (beta 2)

Allods Online looks like World of Warcraft. It also feels and plays like WoW. This is a compliment, because Allods Online is a good, fun game to play

Allods Online is an upcoming free-to-play (F2P), but supported by micro-transactions game from gPotato and Astrum Nival. It entered closed beta 2 yesterday and I was able to put a couple hours into it.

As with WoW, Allods is divided into two factions: Empire and League. Both sides offer similar classes, albeit named differently based on race. At this point, I am unsure how much of a difference between factions the classes enjoy.

I chose to go with an Arisen Occultist (which is of the Psionicist archetype, Empire faction). The Arisen are an undead-like, mechanical race. They are Allods' version of WoW's undead, as almost everyone in game alludes to.

I guess I should cover that up front. Everyone in game won't shut up about WoW this and WoW that, but its understandable as it happens in all new MMOGs. Even in ones that aren't anything like WoW. This is a deal killer for some and has others quickly searching for the chat options to kill general chat. Personally, I just ignore it.

Back to my Occultist. This caster class works on a mental link mechanic whereby all my attacks against the linked target have some sort of benefit. I can then terminate that link, dealing a significant portion of damage. At first the mechanic is confusing as there are hidden benefits not immediately explained that reduce cast time and offer additional attacks (a DoT, stun, and an extra nuke). After a few levels, I am cruising with this guy.

User Interface (UI)

The UI for Allods is familiar to anyone that has played a diku-inspired MMOG in the last decade. It most closely resembles WoW's and again that is a compliment. Many games try, but fail to emulate some of WoW's better features such as the UI. There are hotbars, menus, a quest tracker, and a familiar looking character info pane.


The only missing item is a minimap, but the larger world map works well. I have not investigated whether a minimap is even available.

Combat

A lot of previews have stated that combat in Allods is slow, but in my experience the speed felt right. It was also smooth and enjoyable. Responsiveness is a bit off at times, but that could be related to the server debugging going on.

Technical

There is only one US server and it had a rough start. At first no one could connect and then after a couple hours it crashed and a login queue was put into place. This morning I did not encounter a queue and was able to play without issue.

I am able to run the game at maximum settings without a hitch (quadcore CPU, Nvidia GTX 260 graphics card, 4Gb RAM, Windows 7 Pro x64). My only graphical complaint is that the viewing distance is tiny, but this is the same complaint I have with WoW's limited viewing distance. In crowded areas, to save on performance, only so much is loaded, which often leads to moments where you think the way ahead is clear only to move five feet and find out there are 10 people standing there instead.

Little Things

There are little things that separate Allods from WoW and other MMOGs.

An immediately noticeable and welcome feature is how rest experience works. Instead of accruing rest exp while logged out, players gain fatigue while fighting/completing quests. This fatigue can be traded in at innkeepers for experience. I am unsure if excess fatigue negatively affects a player or not.

Death is handled via a purgatory mechanic. Upon death players are banished to a small zone with other dead players. They are given the choice to wait a short period of time for a free resurrection or pay with experience debt for an immediate revival. There are also consumable items available in game that can be used to escape purgatory unscathed.

There are some fairly unique classes and races in the game. The Gibberlings race features three small furry avatars that act as one. Summoner classes have non-standard pets, such as the Orc's pet Gnome. Also the associated class for the archetypes are named different for each faction, giving a hint of uniqueness.

With these minor differences, there are some significant ones such as Astral Ships that will be revealed in the later levels of Allods Online. Beta 2 is capped at level 20 and limited to certain zones.

Conclusion

I'm being fairly positive in this initial impressions post because Allods came out of left field and surprised me. As I started with, Allods is a good game. The WoW comparisons are endless, but that's a good thing. Other F2P games like Runes of Magic made me want to go back and play WoW. Allods, so far, has made me want to log back in and play Allods. This game may be the F2P equivalent to WoW I've been looking for.


My Allods Online photo album is available via Flickr.