Digital @ AsiaOne

A hit PC game and its novel pricing descends on Asia

Game's SE Asia co-publisher said the game can potentially garner $100 million in gross revenue over the next 4 years in SE Asia
ONG BOON KIAT

Thu, Nov 01, 2007
The Business Times

ONE of the most eagerly anticipated computer games this year, Hellgate: London, went on sale in Singapore yesterday.

The launch at the Funan DigitaLife Mall also coincided with the game's worldwide launch, and with the Halloween holiday - an apt reference to this role-playing game's post-apocalyptic London setting and violent gameplay.

Judging by the bullish pre-ordering from dealers, it was a promising release.

According to the game's South-east Asia co-publisher Infocomm Asia Holdings (IAH), all 35,000 initial copies have been snapped up by distributors.

And demand is expected to be strong. IAH chief executive officer Roland Ong told BiZIT that the game can potentially garner $100 million in gross revenue over the next four years in South-east Asia.

Created by Flagship Studios, Hellgate: London is a computer game that caters to two currently popular gaming genres: multi-player gaming and first-person shooter.

Under a deal with Flagship Studios, IAH makes the game boxsets, as well as serves as its exclusive online game operator in South-east Asia.

Sole distributor for the English versions of the game's boxsets in South- east Asia is Electronic Arts Asia Pacific.

Besides thrilling graphics and a randomisation feature that makes repeated playing interesting, Hellgate: London is also making news for its uncommon pricing model. It has a two-tier pricing model that includes upfront box purchase and a recurring subscription fee.

Gamers first purchase the box, which allows single-user gameplay in standalone PCs. The box purchase also lets them play - without paying - in 'multi-user' mode with other gamers in online game rooms hosted by Flagship Studios and its distributors.

To get additional content, however, gamers will need to pay a monthly fee.

This is considered controversial because online games typically do not require an upfront purchase.

'It is controversial only because people seemed to be very confused,' said Erich Schaefer, chief creative officer of Flagship Studios.

'People have been asking us why they should pay when they could play online for free.'

He is confident, however, that most gamers will choose to pay for extras.

'One of the disappointing things when we were making Diablo was that there was no way to fund ongoing content,' he said.

Diablo was an earlier hit computer game which Mr Schaefer and his brother Max helped develop before they founded Flagship Studios.

Another controversial revenue model is in-game advertising, where advertisements can be found in game scenes.

But Mr Schaefer said that the advertisements will not be intrusive.

'In most cases, they are torn and battered and most players won't even notice the advertising because they actually make the scenes look realistic,' he said.

'The gaming industry is risk averse, and hence not many game developers would offer a pricing model that includes both free and subscription components,' he said.

'This will also be our challenge in the months ahead, to make enough compelling content that justifies people paying the subscription fee.'

'This is the first time I've seen such a pricing model,' said Mr Ong of IAH.

He said that the pricing mode will work because 'it represents the best of both online and single-user gaming worlds'.

Gamers here, though, will have to wait at least until year end before they can subscribe online. The scheme is not ready yet.

For now, they can get the single-user box set at a Singapore list price of $64. A collectors' edition will sell for $80.

When the subscription model is ready, it is likely to be close to what IAH currently charges for its other subscription-based online games, which is between $10 and $25 a month.

 
 
 
Copyright ©2007 Singapore Press Holdings Ltd. Co. Regn. No. 198402868E. All rights reserved.
Privacy Statement Conditions of Access Advertise