Subscription video games can still be successful, expert says

Despite the ongoing proliferation of video games and their uncanny ability to continue appealing to customers, many developers are unsure how to charge for the products. In many cases, subscription models are a viable option for companies.

At least, that’s the opinion of David Reid, CCP Game’s new chief marketing officer. Reid told gaming news provider Develop that companies that develop massively multiplayer online games, or MMOs, need to establish which business model best suits user and managerial demand but should not neglect subscriptions, as they can still be successfully deployed for video games, the news source noted.

“I think it comes down to – subscription is absolutely a viable business model and it continues to be – but I think what everybody in the MMO business has to realize now is that mandatory subscription is not the only way to build these games,” Reid said, according to Develop.

Reid said that decision-makers who are intrigued by the thought of creating a subscription-based video game need to find a successful example and follow in its footsteps. Today, many online games struggle because they cannot produce content faster than gamers consume it. Subscription models are a viable way to create a long-term, successful business strategy.

“If you want to build a subscription-based game, you need to make sure that [it] is the proper business model for the game you are making, for the type of content you’re delivering for the type of game and service with which gamers get new content and what it is they get,” Reid told Develop.

Video game developers can also benefit from leveraging an innovative subscription management platform, allowing them to more easily track and analyze usage and maintain customer relationships more efficiently.

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The Forrester Wave: Subscription Billing Platforms, Q4 2015

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