Michael Pachter Says Sub MMO Market Is "As Big As It's Ever Going To Be"

Written by: (Twitter @winterinformal - ) | July 11, 2012 3:15 pm

54 Comments

Industry analyst Michael Pachter has issued his latest proclamation, declaring at the Evolve conference in Brighton that MMO gaming has “peaked” and that the recent failures by BioWare and 38 Studios are all but heralding the end of the subscription model for MMOs.

Specifically, Pachter says that there are only a limited number of people willing to pay for a subscription fee, and most of them are sucked into World of Warcraft, with other games, like Star Wars: The Old Republic or Rift or The Lord of the Rings Online occasionally coming along and taking a few from that number — but not actually adding new players to the mix:

Star Wars was supposed to bring in all of these new people that had never played an MMO before, just because they loved the brand. We know that Rift just took players from other existing MMOs, and the same with Conan and Lords of the Rings. Now the same thing has happened with Star Wars.

“It looks to me as though the MMO market is as big as it’s ever going to be – as far as subscription MMOs. People willing to play $15 a month.., there are six or seven million of them. Period. If Star Wars couldn’t expand it, when it’s made by BioWare, nothing can do it.

On the one hand, it’s easy to see where Pachter’s coming from. It’s not uncommon to think that so many new MMOs haven’t truly caught on is because they’re all competing for the same players. But on the other hand, the notion that “SWTOR is failing, so there will never be another big MMO,” which is also prevalent, might be a little presumptive.

What do you think? Have MMOs reached their peak? Or is Pachter just oversimplifying the matter?

Michael Pachter Says Sub MMO Market Is "As Big As It's Ever Going To Be"

  • http://twitter.com/JooLaPrime Joel Crawford

    I wouldn’t say SWTOR has failed

    But I certainly wouldn’t pay a $15 sub fee these days. Not with games like GW2 and PS2 around the corner….why would I.

    In truth I’ll probably end up dropping more on these games then any sub based MMO I’ve played, just b/c I control what I’m spending the money on

    • Jado Cast

      I think most people are more frugal in this bad economy. Bad time to have a sub IMO.

  • Jay

    Idk about subs, but I think you reached your peak in dat yellow dress… :trollface:

  • Thomas Monahan

    If you want to bring new blood in…you have to build a MMO with new mechanics. The reason certain players don’t play MMOs is sometimes the EndGame of the regular Raids and the Grind, and the Gear treadmills not’s appeal to certain players and these are the ones that Developers want to bring in. So to solve this we need a change in the Setup Rules of what is the MMO genera. They need to change some mechanics if they want to bring in new players who are not MMO players. Ask why do these players don’t like playing or are turned off from playing MMOs,..and I bet they are SUB fee, Grind, and Gear base treadmills—IE. players don’t want MMOs to feel like a 2nd Job

  • Brimstar

    I honestly believe people are sick of being tied down anymore, having to dedicate their funds to something every month is tedious as a cellphone bill. Now, this can be justified saying this is what expected of AAA titles but that norm has been changing with games that are B2P and F2P, some prime examples are LoL, PS2, SC2, Gw2, STEAM and the ability to be just as good or even better then this subscription model games That kind of trust is something that shouldn’t be looked over;companies deserve what they’re giving back and whether its negative or positive, thats just how it is.

    • http://twitter.com/dularr Dularr

      I just don’t think people are looking anymore.  From the WoW guildies I’ve spoken with only 3 purchased SWTOR and paid a sub for a few months. I only know of one former guildies that is still playing SWTOR.  Had three or four more try out the trial pass, but none stuck. For GW2, I am getting no interest from my guidlies in trying it out.  Wish I could get four players to join me GW2, but it doesn’t look good.

      I think alot of players that are considering stop playing WoW are tried of playing an MMO, any MMO.   

      • Jado Cast

        That’s interesting. Most wow players I know can’t wait to pay GW2. What’s the reason they are not interested?

        • http://profile.yahoo.com/ITHF7XKYGVXFAPCDMDJTKHLBBU Lian Wan

          No raids maybe? :)
          That seems like something that is pretty high on the list of “things WoW has that GW2 doesn’t”.

      • Jay

        I’ve already convinced about 4 maybe 5 of my old guildees from WOW to pick up GW2. The truth is, ArenaNet hasn’t really started advertising the game yet, so unless you stay aware like we do, chances are they know little about GW2.

        It didn’t take much convincing once I started telling them about all the features of the combat, dynamic events, wvw, and all the other little stuff GW2 is doing to progress the MMO genre forward.

        Educate yourself, then educate others… It works great.

        • http://twitter.com/dularr Dularr

          Time, money.  Don’t want to spend time on another new game. Don’t want to spend money on a box (yes I know, you mention there is no sub).  Turned off that Arenanet wanted you to pre-purchase the game to play in the Beta (at the time).    The endless hype of WoW killers have jaded many a player to the lastest and greatest MMO.

          And finally, asking them to do the one thing they hate about WoW, leveling a new character.

          Guys, there is one thing you can do to convince them, continue to play and enjoy GW2  six months after release.  Keep the servers alive and WvW competitive.

  • http://twitter.com/SilverTaurusPL SilverTaurus

    It might look like this, that there is pool of people who play sub games, and the other that dont.. 
    If you look at them, they probably wont suddenly go into sub based games .
    BUT IMO the amount of people who are leaveing games sub games might be equal or even less than younglings who starts they adventure with MMOs.
    Those below around 16 might preffer free to play games and might be lured to games like GW2.. but when they grow up they might find they got some spare $, they might preffer to stop jumping from game to game .. commit for longer time to developing character in stable game as WoW is.

    The new direction of WoW might be in some degree aimed to lure those young players to WoW.. to stop spending 20$ for new games every month or two and just relax with stable subscription to single, but evolving with time game.

    • Randall_Wolfcry

       The economy is shit right now and means that less kids are privileged enough to have personal computers. Most people access the internet with their phones because they can’t afford computers and internet and all that shabang.

      The upcoming generation of computer gamers will be LESS than the current one, because there will be less people who will be able to afford this hobby. The MMO market won’t get better until the market as a whole gets better.

  • http://profile.yahoo.com/3JO75BNS43WDETCNCO7F7XS6Q4 jo

    ha ha, bullshit. SWTOR never had a chance. when motherfuckers start making GOOD, NON-WoW MMO’s again let’s talk.

    • jayremy

       Copying the WoW-MMO but delivering on what many perceive as less regardless of whether it was or not (is irrelevant). The moment they couldn’t distinguish themselves far enough from WoW just like Rift failed to do, success declined.

  • http://twitter.com/kirzanSix Michael Coulombe

    Typical Pachter BS. If anything, people don’t give a shit anymore. I know a LOT of people who “forget to unsub” and don’t care about it. People buy games on steam left and right just because it’s at 15% off. People throw more their money at games without really thinking about it too much. 15$ a month is comparable to a lot of things in the industry. Like DLC. 

    When you really play an MMO and you’re not one of those people whining because they don’t have time to play and don’t want to pay, the hours/$ spent is INSANE. It’s a much better average than, say, someone who buys “the new hot console game” at 60$ (often once a month or more) and finishes the game in 7 hours. Even if there’s Multiplayer, you will “neverrrrr” get the same average.

    CCP knows how to do it properly. Offer a way to buy subscription time with in-game money. That way, once you played a really long time and found a way to get a lot of money, you’re rewarded. Not just with the money, but with the possibility to never have to pay for your game again. The upside? It’s not a F2P game grabbing you by the balls that will eventually limit you. It’s a full game, everything unlocked.

    • jayremy

       I believe this is true some people who don’t manage finances are don’t mind blowing money in the “what if” case of them going back to play or for a few days-hours a month. I myself have likely paid for at least 3-4 months of Wow I shouldn’t have.

      The average player or shall I say majority aren’t the types here on the forums a lot watching the market, the industry and playing many different games. Many WoW players for example, WoW is all they know or just Blizzard games only.

      We can’t assume these people to be as volatile gamers as most of us here. I wouldn’t say we are the 1% or even less than 10% perhaps we are much more but certainly not nearly what >60% of people who have “active subscriptions”.

  • http://twitter.com/OnlyInSaudiArab \.. Wa5eer ..//

    P2P is going to be almost gone in the coming 5 years and B2P is the one will control the market with F2P its so easy to tell this is going to happen 

    • jayremy

       I would just call it subs, because technically “B2P” is “Pay to Play”. More so I have and others have said P2P regarding Peer to Peer, the more stapled acronym discussion games like Vindictus and had people rage about being wrong because they read P2P as pay to play.

  • http://profile.yahoo.com/3JO75BNS43WDETCNCO7F7XS6Q4 jo

    it’s just very frustrating to see ya know? the whole fucking “if EA, Bioware and STAR WARS couldn’t do it, nothing will” line of thought is so god damn retarded. SWTOR was not any fucking good…don’t matter WHO made the fucking thing or the IP. but as far as the IP carrying the shit, Mike O’Brien put that into perspective in 2007 in his GDC speech.

    the only people who are surprised at this turn of events are fucking morons to begin with.

  • http://www.facebook.com/stradus.woods Stradus Woods

    I am done with subs after seven years I won’t pay a sub for a game anymore.  Didn’t play Tera because of the sub (even tho for the most part love the game) if it ever goes free to play or just no more sub I’ll buy it and play).   Most my friends are like me just sick of subs and being limited on time for playing a game.   I think league of legends proves that a micro transaction game can make plenty of money.   Tho mmorpgs I hope to see them more GW2 model in the future. 

    However if the game is good people will pay.  The problem right now is the best we have gotten out of games is becoming not good enough anymore.  I as a game I am always looking for better games to play.   So we just need better games.  People aren’t going to switch from there current mmos for any less.

  • Jado Cast

    He’s wrong. Turn call of duty or halo into a great mmofps and millions will pay subs if you could do it on consoles. The current mmo model especially mmorpg’s have peaked for games that charge subs. There will not be another WoW. Many haves tried to catch that lightening in a bottle but it was a one time phenomenon. not even WoW 2 could repeat that kind of success.

  • Draugmahl

     A lot of the ideas are pretty spot on…I think the actual dollars as far as a sub is concerned are far less significant than the kind of experience a sub game provides, as has been hit on often by many people. A sub-based game provides an experience designed to get people to remain subbed, by nature they are content-restricted and grindy and it forces a very time-consuming playstyle in order to progress into meaningful content. I could go on a huge rant about what that does to players over the long term and how it impact the community to be littered with people who no longer really enjoy the game, but play it because of how invested they are into it. Bottom line is today, right now, at VERY least…the majority of mmo gamers who are interested in GW2 aren’t going to be, and haven’t been for months, swayed into buying and subbing into a game that isn’t likely to be better. IF that game doesn’t have enough content to hold a lot of players attention after the first few months, you’ll likely see an increase in sub-based games again as players start looking for quality games to take up some of the slack (ie people resubbing to WoW/Swtor/whatever game they were playing before). Other people like myself are just so tired the WoW style game (or one of the many near-duplicates) that they’ll likely just find something more productive to do until the bug hits them again.

  • RBHgamer

    I can’t help but think that even with some discounts, 7 years of subs comes to over 1000$, about what i paid for my used car.  And that’s before adding in the cost of the box and the cash shops.  But on the other hand I know that many can afford a cabin at a ski lodge, chains for their car and lift tickets and ski rentals and blow that much on a weekend.  So it obviously is determined by your tax bracket.  When the economy improves sub games will could get a resurgence, but don’t count me in.

  • DoctorOverlord

    For ten years we saw a flat plateau of MMO subscribers when games were following the traditions established by UO.   WoW set a new level by ignoring some of those traditions but it seems like that has hit a plateau as well.     One should never say never but while it might be possible to expand the sub-based MMO market, I think it would take something truly extraordinary.   

    Perhaps it would take one of the big single player games franchises figuring out a way to make an truly engaging MMO experience (and throwing out even more of the old-school MMO traditions).   The chances seem unlikely though, so Pachter’s assessment is probably a good bet and we may see subs simply stagnate.

  • http://www.facebook.com/tyler.dahle Tyler Dahle

    I don’t think MMO’s are dead at all… I just think that companies have gotten very lazy. Every new MMO that seems to come out dies as soon as people reach endgame because oops! They forgot to add decent amounts of content for endgame. That seems to be the trend with every single new MMO that comes out and it takes a year or two before they get things together! Also, games like TERA and SWTOR add something “new” and “innovative” but leave everything else out. What MMO makers need to do is add those cool innovations, but remember to add tons of other things to do besides just level and endgame. MMO makers need to understand that they need to start adding EVERYTHING if they want to keep players around and get them to try it. They need to put in player housing, unique classes, big explorable worlds, good crafting, fun pvp, non linear leveling experience, etc etc… MMO makers today just pick a few of those to implement and think they will be good because hey, they have action combat. NO! I could care less how fun the combat is. If the game is empty I am simply not gunna play it.

  • http://profile.yahoo.com/FPXO267IVAHL3MK4HRRNRQPNDA Bush Swanson, The American Dre

    People are just going to keep havin sex so its like theres just babies all the time. and a lot of those babies are going to have the internet because its so popular and if you think those babies with internet aren’t going to play mmo’s than you are just being a big turkey. I would think that if every person had two babies, thats twice as many players so just like, if you had wow and it had like 10.000.000  people and those 10.000.000  people had 2 babies thats like 20.000.000  baby players so this is probably the best time for mmos but then again so is the future probably moreso….

    • MMO_Doubter

       MMO players having sex? WTF?

      • http://profile.yahoo.com/FPXO267IVAHL3MK4HRRNRQPNDA Bush Swanson, The American Dre

        mike b had sex 

  • Eggers

    The subscription based model for the MMOs hasn’t peaked, WoW has and will go down, but that is because there are more subscription based game coming out that are good games Rift, SWTOR, Tera, TSW and still Eve. These games are taking away from the WoW player base, and more good games could continue to do that.  I think in the future we will see more buy to play models like GW and GW2, and alway some free to play games.  FTP still seems to be the way that games go if they can’t pull of the subscription based and the only big FTP game that have done really well are the LotRO and D&D by Turbine.  I know that all the SOE MMOs are now FTP and APB, AoC and some others but none of these games seem to be doing great I mean I really don’t hear anything at all about them most of the time and if I do it is nothing that would bring me back.  I think there needs to be more verity in the MMOs market because like 90% of the games are fantasy,  I would like to see more Scfi, Steampunk, Horror, and present day games come out.  And if the sub model is dead then why are Tera and TSW selling games?
    I think we will alway see subscription games, but in the future we will be seeing more buy to play then http://FTP. 

    Oh and SWTOR still has over a million subs, and SWTOR was mismanaged by BioWare and EA it  should never of cost 300 million to make that game.  WOW GWs, Rift, Tera, TSW, LotRO, and EQ all good games and I’ll bet that not one of them cost even half of that to make them.  BioWare and EA got carried away.

  • http://pulse.yahoo.com/_JD5RIAPTFFZFIF3DCNYVVG7NIQ Kyle Bohannon

    how bout the fact that the mmo market is so over saturated that its not funny? not to mention the fact that game companies are taking for granted what they can and cant get away with. swtor and wow : cataclysm are living proof. both games somewhat lacking in regards to either quantity and/or quality and they’re suffering for it.

    as big as its going to get? nah, i see it as the consumer finally getting smart with their money and realizing that the content theyre getting isnt worth the 15 bucks because the quality is bad.

    i dunno tho, im not an expert. just my opinions and observations. i didnt stop playing wow because the 15 bucks was too expensive, i stopped playing because i didnt enjoy their content

    • jayremy

      Wrong reply to the comment, but I do agree with you.

  • jayremy

    I think the market will still grow but it is not growing as rapidly as it once was. Think of a curved line (chart), and growth is slowed down but definitely far from stopped.

    Software is needed to sell and grow the market, maybe at some point in the future we may see another surge in popularity. I believe as the gaming pastime grows in popularity as people in society as a whole “tech up”, all the sub-genres, just like MMOs will grow.

    Talking about sub vs free to play payment and gaming structure sure may slow the sub based game market, as any decent competition you would expect would. Subscriptions aren’t going away, at least as a success model. Devs have to be happy too not just players and a great game (to whomever and whatever it may be) is always worth a payment and subscription.

    • Randall_Wolfcry

       We just need to have South Park do another episode about a new MMO. Some people think “Nu Nu, WoW was big before South Park” but hardly anyone talked about WoW before the South Park episode.

      WoW may have been big before, but it got HUGE only AFTER it was introduced to the larger pop-culture audience by South Park.

      • jayremy

          I
        see the MMO industry going leaps and bounds after certain points of
        larger scale introductions and seemingly “revolutionary” titles. WoW
        didn’t really attract just gamers for example, it brought millions into
        gaming that weren’t “true gamers” before and arguably still aren’t.

        For the gaming industry to grow beyond the normal amount of people
        already in it, it requires time, through social changes and
        attractiveness to new audiences. Not as much in a gameplay sense as a
        marketing and social networking demand.

        We will never see a steady line progression and it really depends on how well the software sells the market.

  • Randall_Wolfcry

    It would be great if this is the peak.

    There are WAY too many MMOs out there and you can’t have that many games out there splitting the market. With MMOs becoming less profitable it’ll force people to THINK before they invest tons of money on a game that turns to shit in less than a year.

    There are a lot of MMOs out there that I might like trying out for one reason or another. But I’m not gonna buy fucking 10 MMOs and pretend I would have time or money to play them all at once. Companies need to pull it back and focus on fewer, more polished and innovative products instead of pumping out garbage non-stop.

    • MMO_Doubter

       They will stop producing it – when we stop paying for it.

      • Randall_Wolfcry

         Well then let this be my plea to the world for everyone to stop buying shitty games. :O

        • MMO_Doubter

           Amen to that.

  • http://profile.yahoo.com/QPGS6RZQJSX3PB6KX6PIXASFS4 sergio

    Wasn’t Mr Pacther the one who said Call of Duty games might go subscription based? In mmo’s yes we might have peaked, but in general subscription will continue to be around, specially if you have normal game with perks like “elite” system they already have. 
    If an mmo can do all this we might have a normal f2p or b2p game with a subscription for the extra stuff.

  • MMO_Doubter

    ‘Industry analyst’

  • mcfoyle

    certainly does seem like there is a static pool of mmor players, a portion of which that sort of floats about between games.

  • http://www.facebook.com/people/Shawna-Daniels/1135007726 Shawna Daniels

      People have absolutely no problem paying 15 dollars per month for a game. I think that’s where this article is wrong. There is room to grow in the industry for sure, but people won’t be willing to pay for substandard products. Who would buy the SWTOR box and continue paying 15$/month  when free games or B2P games are better? The correlation between SWTOR’s current problems and the unwillingness for 10 million to pay isn’t the price structure, it’s the fact that SWTOR isn’t a very good game, and lacks longterm appeal to keep playing and keep paying for most as it just isn’t all that fun.
      
     The fact that GW2 isn’t using a sub fee is very nice indeed, and will attract a larger population as games such as LoL have shown. Paying 15 dollars a month for countless hours of entertainment is dirt cheap and if a game comes along that warrants that subscription structure, the masses will be willing to pay it. I personally would probably pay 100$/month to play GW2 if that’s what their price structure was at. People will pay if the quality and fun is there. I’m sure Blizzard is taking notes on how ANet is doing this.

  • H S

    Patcher is just trying to save face because his forecast  pitch to investors for SWTOR was so wrong.He has to find excuses since it was he who talked investors into throwing more money at SWTOR after it had already used up its $80 million budget in January 2011. These are the guys(investors) right now, who haven’t seen a nickle of their money returned from his pitch, and he is scrambling to explain why it was not his fault.

    • http://twitter.com/dularr Dularr

      And don’t forget BW gave away 30 days of free gametime to active subscribers, around 22.5m dollars in revenue.

  • http://twitter.com/K0ndra Madao

    The only subscription monthly MMO which deserves my money is EVE Online and if you play it, you can play it for free!

  • Dekin

    I didnt hear a word they said….THAT WAS SOME FREAKING EPIC B-ROLL. What the hay hay man why did they make a video game, they should have made another movie. I’d pay to watch 2 hours of CG if it was that pretty.

    • http://www.facebook.com/people/Willi-Enderle/1668850948 Willi Enderle

      I´d totally watch it.
      Never understood why they didnt make a cgi starwars – movie yet.

    • ArsenicSundae

      Ditto on the CGI.  More entertaining than SWTOR and far better than the last three films.  It’s an opportunity squandered.

      Topic:
      Subscriptions are going through a process of natural selection and the market has selected them for extinction.  One thing that has become crystal clear is that the money you pay every month is NOT coming back to you by way of fresh content.  Just look at WoW and the pathetic return it’s been giving for years.  If companies want to continue charging subscriptions, they’re going to have to start proving that the investment their players are making, is getting them something more than what F2P games are providing. 

      If GW2 succeeds and proves that subscriptions don’t automatically provide a superior experience, the final nail goes into the coffin.  A year from now, the industry could look vastly different as games that formerly planned on using the standby subscription model, rethink their options.

  • Morturion

    Why pay for something bad like WoW when you can play something cool like LoL for free ? :D

    • MMO_Doubter

       Or vice-versa.

  • RolyVento

    With so many great F2P game out there and coming out (GW2) I doubt I will ever subscribe again to any monthly fee game. I may eat my words but nothing that has come out yet (The Secret World) or anything of that nature has really attracted me to subscribe… the quality is just not there! and I can’t wait till August to cancel my WOW account.

  • http://profile.yahoo.com/ITHF7XKYGVXFAPCDMDJTKHLBBU Lian Wan

    Why is 38 Studios even included?!  Copernicus wasn’t released and then failed. It wasn’t even given a chance to fail.

  • Revanhavoc

    Great conversation. I think we can mostly agree the MMO market has reached a point of saturation. This is supported by developers changing focus to ease of access (F2P) instead of pay for promises that may never come true (SWTOR). Ease of access is the only way to increase the player base at this point.

    (Don’t count out innovation, Revan.)

    havoc is right, for all we know an incredibly innovative game could be released blurring the lines between social networks, gaming, and virtual reality.

    My final thought is ths: the era of the sub-based MMO is coming to an end, however the era of the MMO has only just begun.

    • MMO_Doubter

       The ear of MMOs being games is coming to an end. The era of MMOs being graphical facades for online stores has begun.

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