***** n stuff, on 02 December 2012 - 03:22 AM, said:
You forgot the option: I would spend less money because I'd need to buy less premium time for the same amount of play time.
Premium time is fine the way it is, tying it to time played instead of real time would generate less revenue unless the MC cost of premium was significant increased to compensate, which would make it an exercise in pointlessness.
***** n stuff, on 02 December 2012 - 11:28 AM, said:
"excercise in pointlessness"
I stand by my statement.
Actually it would not be a pointless change. Follow me for several minutes (please).
TLDR: More people buying at a higher cost will more than compensate for people
possibly buying premium time at a lower rate. Don't bother arguing/replying if you are only reading the TLDR...
There are two systems that could be used:
1) Premium time tied to real time (A.K.A., the current system)
2) Premium time tied to PLAYED time
Nothing new so far.
The current system works if everyone realizes that the cost of premium time accounts for 1) time spent playing and 2) time spent not playing. For example, Piranha Games might have set the cost of premium time assuming people would play 6 hours per day. However,
a large majority of people do not realize that this is how Piranha Games set the cost of premium time. This is evidenced by the fact that approximately 80% (at the time of writing) of players would be willing to spend more money on premium time if it were tied to PLAYED time.
Ok, that's cool, but what does that have to do with MWO's revenue stream?
Instead, what players are doing is attempting to optimize the amount of gameplay time they get while paying for premium time. Therefore, the majority of players are not buying premium time except when they know they can spend a lot of time playing during the premium time period. This is resulting in a large fraction of players only buying premium time when they can spend a lot of time playing, which is the minority of the time for that large fraction of players.
So a lot of people aren't buying premium time with the current system the way it is. How do you change that problem?
You eliminate the possibility of trying to optimize how much players try to play during premium time. This is a major reason why people are not buying premium time. Without that possibility, people will buy premium time
according to whether they want its benefits, not according to whether they can use it.
The way you do this is by tying premium time to PLAYED time. Two things happen here:
1) You eliminate any way to optimize how you use premium time.
2) You make premium time seem like a better deal, even if the cost-per-played-time is the same.
The elimination of ways to optimize how you use premium time is why tying premium time to PLAYED time is not an "exercise in pointlessness."
But some believe there is another reason for why premium time should be left as is. If you tie premium time to PLAYED time, people won't need to buy premium time as often. This could decrease revenue. What do you say about that?
There are three things that determine the revenue generated by premium time.
1) The rate, or how often, people need/want to buy premium time.
2) The number of people buying premium time.
3) The cost of premium time.
I agree that changing the system by tying premium time to PLAYED time, while not increasing the cost of premium time, would actually result in a loss of revenue
only if you assume that the same number of people are buying premium time and you assume that people buy premium time less often. However, that is probably not a good set of assumptions.
In my example for how Piranha Games set the price of premium time above, I said that the average time played per day with premium time might be 6 hours. Suppose that premium time is changed and tied to PLAYED time. Now people might be buying premium time a quarter as often (6 hours divided by 24 hours in a day).
So people are now buying premium time at 25% (0.25) the rate that they used to. How does Piranha Games generate more revenue if this happens?
I've explained enough before that I'm not going to restate why (see above posts), but more people will be buying premium time. To break even with the same cost, four times as many people would need to be buying premium time. Although this might be ambitious, again, my poll is showing that approximately 80% (at the time of writing) of players would be willing to spend more money on premium time if it were tied to PLAYED time. So that could suggest that five times as many people are willing to buy premium time if it were tied to PLAYED time.
Just because approximately 80% of people are more willing to buy premium time tied to PLAYED time does not mean that five times as many people will be buying premium time...
Right, which is why there should absolutely be a price increase in premium time if it were tied to PLAYED time (it is a better deal after all). Suppose that only two times as many people are buying premium time tied to PLAYED time than are buying it in the current system (I think this is way less than the increase we would see). Now the price would only need to double for Piranha Games to break even on the change. I would pay double the price if this change were implemented. I'm guessing a lot of other people would too.
Ok, I see what you are arguing, but you're also making some assumptions some people might not agree with...
Also right.
1) I am assuming that a.) the increase in the number of people buying premium time and b.) the increase in the cost would more than compensate for the decrease in the rate at which people buy premium time. For example, let say the rate is 25% of what it was, and the number of buying people becomes 3 times what it was, and the cost is 2 times what it was, then revenue would change by a factor of
0.25 x 3 x 2 = 1.5. That is, you would see a
50% increase in revenue.
2)
I am also assuming the there is a decrease in the rate that people buy premium time at. Who knows, maybe people will buy premium time more often than they do with the current system??? Personally, I would be buying premium time MORE OFTEN than I do currently. I am making this assumption for conservatism, not for practicality. I think people would buy at about the same rate actually.
Edited by Meatball095, 02 December 2012 - 08:01 PM.