I Work in the IT-Industrie (not in PC Gaming area) and i am quite familiar with all the different Business models.
I just wantet do show the Pro and cons also from a Publisher/delevoper point of view without favoring one.
Pay to Play:
This model is the one most players are familiar with. Games like WoW and most other western MMO had this model for many years. It means the player hast to pay initially for the Product itself (for owning the Software). Then the User has to pay frequently for using it. Usually a fixed amount of cash every paying-period (often like every month).
Pro Player:
He can precisely plan the cost of this. He knows that he will be able to enjoy the whole content without any restrictions after he paid the fixed amount of money. We also know that no other player in the game will have any advantage over him (excluding maybe more free time to play).
Con Player:
He has to pay in advance..... wich means if the Product is no fun to him or full of bugs and flaws, he spend the money at his own full risk. And since sooo many Programs are close to unplayable due to bugs this is a HUGE disadvantage.
Pro Company:
This model offers a more easy planing. Because at beginning of a month you KNOW how much money come in. Therefore do a very detailed planing on you resources to keep things running wihtout the risk of high losses. Also you receive a large portion of you initialy investet money at release date. Providing fast fresh money to keep the show going.
At the development phase you can put more time and resources into making the game great. The other model forces you to put quite some design-power into tweaking the game to become a Cash-Cow of some sort.
Con Company:
To cover all your expenses and make a profit the typical player MUST play the game for a certain amount of time. If he leaves before that green number of months, then it was a fail. (Worst scenario beside not selling at all: Customer buys software, and doesnt subsribe at all and just uses the typical granted free month.)
Free to Play / Pay to win:
These two descriptions are more closely tied together than most people want to hear. But its far less issue than most think. First there is to say that something like true Free to play doesnt exist (exception may be Fan made mods or Games). Every company wants to earn cash to pay their emplyees. NEVER EVER forget about this! So a developers job is to design a Game that is fun enough to suck players in. But also ensuring that players will have a much harder time if they dont pay.
A very good analogy is if you want to go skiing in the mountains. You got the equippment and the skill to have a nasty race there. However you have to get on top the mountain first. And it is absolutly free..... you can go climb the mountain and then get fully into the fun..... Or you can take the ski-lift for a fee to get on top much faster and without to exert oneself. This is what free to play means.
And every non-masochistically player will pay sooner or later or stop skiing.
So in conlusion: BOTH models mean you have to pay. Difference is the first will FORCE you and the other will PERSUADE you.
Pro Player:
You dont have to pay in advance! You can first check out basics of the game and see if its fun to you. And MOST IMPORTANTLY see if the game runs well. This has an enormously effect on the related industrie. As a developer you CANT release a half made game that is full of bugs. Because of the FtP/PtW model you would loose alot of potential customers in the first few weeks. Overal the FtP/PtW games are at a much better condition at release date than many other Products. Additonlly a player is NOT forced to pay regulary. He can decide for himself to invest 100 $ at start and then several month nothing or any other pace the play wishes.
Con Player:
Its usualy more expensiv over time (IF you are a realy dedicatet player). But that also in line with math..... normaly you dont just pay the typical 15$ a month but you also bought the game itseld for like 50 $ at start. So a standard company aims for a 25$ bucks a player should spend a month to stay in the green financial area.
After aroudn 5 Months you will normaly have people leaving for newer software. EVERY game gets abit old and more boring over time no matter how good it is (just some older faster than others).
Pro Comany:
Simply yields
more Profit under the right circumstances (since this ist the absolut primary goal of any company i had to realy put it into larger letters). Dedicatet players will pay a MULTIPLE of the Pay to Play model in the same period of time. This is also a HUGE advantage in a industrie where its products can grow old and obsolete in weeks.
Con Company:
There are serveral risks in this model. Firstly if your Product "sucks" (meaning its no fun, or full of bugs) you wont even get the initial flow of money like in the Pay to Play model resulting in a financial desaster. Cause of this, there is usualy more quality assurance involved before release. And aso somehwant less money for the initial development (to minimize this risk).
Also there is the risk of presenting too much fun without paying. The game MUST have ALOT of paying customers to yield profit (and to keep it running at all). So if the customer can archieve things too easy without paying its a epic fail in design and resulting again in financial desaster. On the other hand it must provide just enough fun without paying to "persuade" the customer to get even more out of the game WITH paying. This is no easy feature to balance.
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I know there are fan-boys of both ways that will come up with tons of "good reasons" why their prefered model rocks........
But from a IT-Manager side of view its the money that made relevant at end of the day.
I realy love to play games.... but belive it or not my family hast to eat, live and bills have to be paid. Everyone who thinks that making a great game is the primaly goal of any developer is plain stupid.
The primary goal is to make money.... LOTS OF MONEY! And if that objektiv is archived... then every developer with passion for game will see if he can create a realy great and fun game. Its in that order and nothing else! :-)
Edited by Extinction, 18 August 2012 - 06:32 AM.