Inside Asian Gaming

INSIDE ASIAN GAMING | February 2009 10 Cover Story most gaming industry literature. In some ways it is the spiritual computer-driven descendant of the progressive rock music and fantasy live gaming of the 1970s exemplified by such exponents as the rock band Yes and the International Fantasy Games Society. The most famous example of modern MMORPG is Blizzard Entertainment’s World of Warcraft , the largest pay-to-play game of that type. In April 2008 World of Warcraft was estimated to account for 62% of the global market for MMORPG with 11 million monthly subscribers. Free-to-playMMORPGsarealsoavailable, supported by advertising and purchases of in-game items. The free-to-play model is particularly common in Korean MMORPGs such as MapleStory and Rohan: Blood Feud. MMORPGs are normally graphics-rich and use complex computer programs often in 3-D, normally making them unsuitable for delivery or download to mobile handsets. As far as content goes, they frequently use a story or narrative based on a fantasy adventure. Other common traits of MMORPGs are that they usually have the option of multiple skill levels and/or storylines. Their availability in live online format means they also offer players social interaction with their peers, as the name suggests. MMORPGs often have a sub-culture specific to the game, such as jargon or special names for objectives. In many games characters can be customised in terms of appearance and playing style. One of the most interesting features of MMORPGs in terms of its financial model is that many feature the characteristics of ‘real’ economies. Virtual items and currency have to be gained through play and have definite value for players. Players can sell items to one another for in-game, virtual, currency or barter items of similar value. They can also purchase items for use in game, such as personalised avatars, using real-world currency. The Three Graces Factors in favour of soft gaming in China and Asia Pacific T here are at least three important virtues of subscription gaming and other soft gaming in the China and the Asia Pacific region. The first is the formats are generally free of hostile regulatory action by governments that ban gambling generally; ban online offshore gambling specifically; or want to tax it heavily. The second is they offer the chance of secondary revenue streams through the sale of things such as avatars—on-screen icons or animated characters that can be used to represent the player in the game. The third virtue is that because these games are deemed as ‘safe’ from government restriction, they offer their owners opportunities for strategic alliances withmobile communications networks or online social networking sites. Telecoms networks often have significant debt liabilities arising from the purchase of digital spectrum for 3G services and also face downward pressure on carriage costs because of lobbying by consumers and regulators. Any content that keeps people online for extended periods is going to be welcomed as a way of generating extra revenue. Partners PacificNet is working with Chinese telecom operators in the delivery of so-called casual games. “We are a service provider and content provider for various mobile value added services for China Mobile, the biggest telecoms operator in the world, and the second largest, China Unicom,” says Tony Tong, Chairman of PacNet. Revenue model Soft gaming content may also provide telecoms and networking operators new opportunities for revenue from advertising aimed at those soft gaming players. “We’re seeing advertising sponsorship in-game,” said Ken Crouse, Senior Director, Product Strategy of CryptoLogic, an award winning provider of online gaming content, during a seminar for industry professionals at last year’s Asian i-Gaming Conference & Expo in Macau. “These are revenue models that the video game industry has been working on for a number of years and starting to put in place,” he added.