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Pachter on next-gen: "Developers need to charge for multiplayer"

Charge me for the game, which includes an online pass.

In the case of XBox Live - charge an annual fee to play online, with a $10 price increase for CoD.

Then you want to charge me for what I already paid for twice

And then you call me entitled.

Fuck you.
 
This is one of those times I'm glad I have great resistance because what I want to say is totally ban worthy.

But the audacity to call us 'entitled' gamers... Even for those of us that pay for xbox live... the fucking nerve. The fact that he can belittle us 'entitled' gamers and make a living off said gamers is a fucking joke.

I really wish ... I'll just stop.
 
This is one of those times I'm glad I have great resistance because what I want to say is totally ban worthy.

But the audacity to call us 'entitled' gamers... Even for those of us that pay for xbox live... the fucking nerve. The fact that he can belittle us 'entitled' gamers and make a living off said gamers is a fucking joke.

I really wish ... I'll just stop.
Don't worry, you're among good company and like-minded people here.
 
I think people are overreacting somewhat. In the context of what he said "sense of entitlement" isn't a bad thing, change that divisive adjective to another "E" word, expectation, and the meaning is precisely the same but I don't think it carries the same negative connotation.
 
Why would developers be interested in charging fees and subscriptions when they see idiots like me laying down more cash than that for keys in dota?
 
"The solution is to figure out a way to charge for multiplayer, but gamers have a sense of entitlement, believing 'once free, always free', so this one is tricky.

So, what are we paying when we buy the game? The single player only?

Is there a way to buy only the multi player?

I'm guessing not.

So, it's the model that's wrong... not the"sense of entitlement" that gamers supposedly have.

Again... why are we listening to this guy?
 
No, no.
Multiplayer is free.
AOZxr.jpg


No, no. Multiplayer is free.
 
I don't know if it's been explained, but here is a bit more about what he has to say about the subject. I don't think he'll mind me sharing. Emphasis mine.
We believe the migration of sales to digital is destined to continue, particularly as free online console multiplayer gaming continues to soak up all available hours. In our view, games like Call of Duty generate average revenues per consumer of around $75 annually, consisting of the packaged goods purchase, DLC purchases, and modest contribution from subscription services. The average player spends an estimated 500 hours annually playing these games, suggesting that revenues per hour of game play are close to $0.15. In past years, players paid $60 for a single player experience lasting a typical 30 hours, or $2.00 per hour. This suggests that online console multiplayer gaming is cannibalizing revenues for the industry, by providing significantly more value to consumers than gaming has in past years. We don’t mean to suggest that a player logging 500 hours on multiplayer would have purchased 15 games had multiplayer not been available; rather, we believe that approximately half of the players who spend 500 hours on multiplayer would have purchased ONE additional game for $60 had multiplayer not been available, generating $90 in annual revenue rather than $75. Given that the combined online multiplayer audience represents approximately 1/3 of all PS3 and Xbox 360 owners in the West, it is clear that free multiplayer gaming is a serious drag on packaged goods sales each month.

We expect this flaw in the current business model to be addressed next generation. While we don’t believe that current experiences will be dramatically changed, we do expect new models to emerge with new titles, and we think that the subscription and premium multiplayer experiences revealed in the past year (Call of Duty Elite and Battlefield Premium) will evolve with other games to require subscription-like payments as new multiplayer experiences emerge. Ultimately, it is incumbent upon the publishers to address the eroding prices paid by consumers for increasing hours of entertainment, as the current model is flawed and has resulted in lower overall revenues and profitability for the industry
With that extra detail in there, I don't think he's off base, really. The dollar-per-unit-time ratio surely feels like it has gone down (my opinion) and that drags down packaged revenue. No reason not to pursue ways to increase the ratio, if the market will accept it.
 
So, people are having more fun/hour ratios now than they did before. They should pay more.

I don't get the time cannibalizing argument honestly, even if such a thing was actually possible to prove, this generation overall revenues have grown considerably compared to previous generations and the industry has grown as a whole. The problem is that they are spending more money on creating sub par games, that is why they are seeing less money back.

Or maybe I'm wrong and that is why I don't own a multimillion dollar company.
 
This suggests that online console multiplayer gaming is cannibalizing revenues for the industry, by providing significantly more value to consumers than gaming has in past years

My GOD... he's just saying: "Don't give more value in your games. Suck more money, add less value."

- We didn't have to pay 60 bucks per game
- We didn't have to pay for DLCs
- We didn't have to pay sometimes (rent)
- There's still the re-sell issue
- PC games had LAN and were best sellers
- Console games had offline multiplayers

He keeps adding nonsense to his speech.

I don't mind the actual bussiness model: "60 bucks... and pay for DLC". But charging for multiplayer is going overboard.
 
I don't know if it's been explained, but here is a bit more about what he has to say about the subject. I don't think he'll mind me sharing. Emphasis mine.
With that extra detail in there, I don't think he's off base, really. The dollar-per-unit-time ratio surely feels like it has gone down (my opinion) and that drags down packaged revenue. No reason not to pursue ways to increase the ratio, if the market will accept it.

"The average player spends an estimated 500 hours annually playing these games, suggesting that revenues per hour of game play are close to $0.15. In past years, players paid $60 for a single player experience lasting a typical 30 hours, or $2.00 per hour."

There's something wrong with this statement. Is he comparing the total number of annual hours per player for online multiplayer games against the number of hours for one single player game?


edit: Yeah, it seems like he's calculating (total hours played of every game added together in one year) divided by (cost of one game) to get his revenue per hour number. That almost seems fraudulent.
 
edit: Yeah, it seems like he's calculating (total hours played of every game added together in one year) divided by (cost of one game) to get his revenue per hour number. That almost seems fraudulent.

Because it is. He is also ignoring the fact that even before Call of Duty came along there were online games that people played for years, without subscribing or paying a cent more.

What he is basically saying is: There is some untapped potential in your games, if you guys treat your customers like addicts (which going by these numbers they basically are) and charged by the minute you'd be even richer. Why don't you go ahead and do just that.
 
Pachter is employed to provide advice to investors, on the profit potential of companies.

So his advice for companies to maxlmise their profits is clearly going to annoy gamers, since they want the opposite (pay as little as possible).

His argument seems quite compelling to me. I recoil in horror at what it represents though
 
--
'Welcome to Walmart, how can I help you?'

"I'd like this here basketball, please."

'A basketball hey, that will be fun. That will be $19.99....
-- UNLESS ---'


"Unless what?"

'Unless you plan on using it to play with other people.'

"What difference does that make?"

'Well, then it's 19.99 for the basketball, and an additional $1 per day for using it with friends.'

"Sick, that sounds totally legit!"
--

We're spending the $60 frickin dollars on a frickin game for 4 hours campain BECAUSE of the multiplayer. We're paying our ISP, we're playing Microsoft for XBL (if we have any sense, cause PSN is Fing garbage compared to XBL when it comes to partying up for games of NHL, COD etc), and Activision is milking many of you for COD elite. Gamers are paying $60 for the game each year, $50 for elite each year, and now Pach thinks more money can be extracted for still another online fee?

People will balk at this imo. Too much is too much, already. If they want to hike the cost of the game by $10 or something, then that will probably sit better with people than a whole new "online" charge on top of all your other online charges.

Rubbish, Pachter.
 
It's evident that someone will try that. They are already creating new and different paying habits amongst gamers with Call of Duty, Uncharted, GT5, etc with "fidelity programs" or whatever this stupid shit is called. The reality is that you guys will enroll and swallow the pill when it will come to the point where they will feel ready to charge for multiplayers. They will prepare you slowly and you will see NOTHING.
 
--
'Welcome to Walmart, how can I help you?'

"I'd like this here basketball, please."

'A basketball hey, that will be fun. That will be $19.99....
-- UNLESS ---'


"Unless what?"

'Unless you plan on using it to play with other people.'

"What difference does that make?"

'Well, then it's 19.99 for the basketball, and an additional $1 per day for using it with friends.'

"Sick, that sounds totally legit!"
--

We're spending the $60 frickin dollars on a frickin game for 4 hours campain BECAUSE of the multiplayer. We're paying our ISP, we're playing Microsoft for XBL (if we have any sense, cause PSN is Fing garbage compared to XBL when it comes to partying up for games of NHL, COD etc), and Activision is milking many of you for COD elite. Gamers are paying $60 for the game each year, $50 for elite each year, and now Pach thinks more money can be extracted for still another online fee?

People will balk at this imo. Too much is too much, already. If they want to hike the cost of the game by $10 or something, then that will probably sit better with people than a whole new "online" charge on top of all your other online charges.

Rubbish, Pachter.
Basketball's cost don't go up, games do.
 
Whether people like this or not, I would be shocked if something didn't happen akin to this. And yes, people would pay for it.
 
Haven't pretty much most MMO's in recent years that tried to chase after the WoW money crashed and burned hard? I'm sure it will be a great idea for the industry to do the same for the rest of their games too. Pachter giving good advice as always.
 
Why is he still around? I didn't know people took anything he said seriously.

I'll hold onto my PC. Dedicated servers have treated me well so far.

I hope so. This would make multiplayer less popular and we'd get less BLUNT TRAUMA
Hahahaha
 
It'd be cool if the single-player game was like 40$ and the multiplayer 20$ or something. For me it'd mean games would only be 40$!
 
Haven't pretty much most MMO's in recent years that tried to chase after the WoW money crashed and burned hard? I'm sure it will be a great idea for the industry to do the same for the rest of their games too. Pachter giving good advice as always.

Actually I wouldn't mind that some generation of big publishers would crash and burn because of their stupid decision and leave place for some much needed new players with better ideas.
 
I don't see what the big deal is. If developers start doing this then don't pay for it. I haven't played COD since MW2 and haven't missed a thin
g. Gaming isn't exactly a necessary hobby and as far as I'm concerned the industry can shit itself and collapse. I know it's a business and they're trying to make money, but the way they're going about it is predictable and tiresome.
 
Basketball's cost don't go up, games do.

To at least some degree, that's because game makers want to make their games bigger and badder each gen.

I'm sure that a basketball manufacturer could make a ball that lasts twice as long but costs four times as much to make. They don't because basketball manufacturers aren't idiots.



That said, it's important to note that playing basketball multiplayer doesn't cost the manufacturer any money. Playing a video game multiplayer, if online, costs them to maintain the servers.
 
I kind of wonder if XBox live has been the reason for this not happening sooner. MS might have possibly saved us from this inevitable future on consoles where we are paying to go online with each game rather than a flat fee which XBox charges.
 
EA and Activision already charge "about a dollar a week" for a full online multiplayer experience. If you want all the maps, skins, etc, you gotta pay.

CoD Elite = ~$50 (52 weeksin a year)
Battlefield 3 Premium = ~$50 (52weeks in a year)

If you include EA's "online pass" fee for used games, they actually average slightly more than $1 per week.
 
I also love how the solution to his made up problem would probably benefit those studios causing the problem more than it would anyone else. All for the health and profitability of the industry of course, and by industry I mean the few big studios that put out those big multiplayer games.
 
Wow. I know that there is a business side to all of this, and some companies have their priorities set a bit less, uhh, honorably... but this is pretty bad. I wonder how far they would go?
 
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