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Battle.net - Future Business Model?      7-Nov-09 07:25 am    
Hi guys, just want to hear from what you think about the future of Battle.net. The last couple of days I've started to think how they could start making money from the soon-to-be revealed new battle.net.

In my opinion there are 4 ways to make money from a game:
1) Creating the game itself
2) Distributing the game:
* Disc-format: Retail worldwide - although everybody seems to believe this will reduce dramatically within the next 10 years or so via the swift to digital.
* Digital: Services à la Steam
3) One-time services: Micro-transactions in-game
4) Subscription services

The way I see it Blizzard has two kind of franchises being A) MMO's and B) non-MMO's like Starcraft II.

Consider:
1) Off course they create the content so that money is already in the bank.
2) Battle.net gives extra opportunities since they are now driving all their customers to the hub which makes piracy a lot more difficult. Once everybody is on board they can rival steam cause they wouldn't them anymore, they can to it themselves since they are aiming for 'best of world' status. That way they will also cash in the digital distribution $ and create their own little Blizzard shop online instead of being in competition with other titles on other platforms.
3) One-time services: Think what they just announced: buying a pet in, changing classes for a "small" amount. Also referring to 1, they no longer have to create the content since they announced the would accept content from users to be sold via their hub (after a quality check I suppose), I assume they're going to take a nice cut of the final price to the customer. That's like free $ while keeping your customers happy with this extra opportunity, that way they're like getting a free Blizzard Studio via which they possibly can attract new staff if a couple of them show real potential. No need to look for people, they're daily presenting themselves to you and you get paid for it.
4) Subcription models: Off course we already get income from WOW but it was never clear to me how they would be able to get extra $ from like Starcraft II. I mean you buy the game and you can play for free online right? Off course they can give certain privileges to battle.net+ for example so people would be charged a couple of $ each month so they would get the absolute premium treatment. In that regard it would be ideal if also Activision's pc games would be integrated under the Battle.net umbrella. Let's assume they would be able to migrate the pc gamers to battle.net with COD and they deliver a good console-like matchmaking system for free. After a year or so they start with battle.net+ where you get access to dedicated services ONLY they are all from the Blizzard farm. That way even for COD-like games you can get a monthly income, get the die-hard fans who aren't happy back in line and pick the last remaining dollars from the dedicated server-providers.

That way they would be able to own the entire chain of distribution and get a steady stream of subscription fees. Think of all the COD/Starcraft/Diablo etc followers who we could charge a couple of Dollars for a premium service. Couple that with a possible take-over of TTWO, let's face it they are going to get bought be it within 2-5 years, so you get something like a WOW meets GTA MMO with subscriptions.

Could you give me some feedback on possible flaws in my thinkwork or some other views on how to create extra revenue?
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Battle.net - Future Business Model?
miningforgo... Not rated 7-Nov-09 07:25 am  
 
Hey, Thanks for the interesting post. Most poster...
mango_tree_... Rate it 7-Nov-09 04:08 pm  
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