Alex Goldman
Alex Goldman is a producer for On the Media. One time he got run over by a car.
OTM producer PJ Vogt and I have been very public about our love of a video game called Team Fortress 2 (or as we nerds call it, "TF2"). So much so that in April of last year, after much goading and pleading by the two of us, Bob spoke to Robin Walker, a developer for Valve Software, the company behind TF2. Specifically, we wanted to talk to him about the frequent statements that Valve has made to the press about how in order to beat video game piracy, content providers just have to make their product more enticing than the pirates could.
ROBIN WALKER: I think it’s looking at the things that pirates are providing and asking yourselves how you can provide something better than that. So, to pick an example, if you purchased a product from us, we're going to continue working on that product after we've released it. We're sort of making that initial purchase of the product significantly more valuable over time. And so, if you somehow manage to get it for free initially but not in a way that lets you plug into that system, you know, that’s going to be a big hassle for you as you continue to try and figure out how to get each of those incremental improvements over the next few years for free, as well.
And Valve really does put a lot of work into TF2, especially for a game that was released over four years ago. The company continues to create new weapons and items, which can either be found in-game, traded with other players, or purchased from Valve's "item store" for prices anywhere from $0.99 to about $8.00. Valve also does occasional updates that will add a raft of new features and items for a particular character class (and usually come with secondary content to please the fans like the "Meet the Sniper" trailer below).
In June of 2011, Valve made TF2 "free-to-play." Where you had to pay between $10-$20 upfront to purchase the game before, you could now download the game and play online at no cost. The only cost would be if you wanted to purchase items rather than finding them in-game or trading for them. This seems like a step that a company who plans to back away from a product and move on to other things might take.
Earlier this week at the Game Developers Conference in San Francisco, Valve's Joe Ludwig ran a session where he basically said that TF2 had transitioned entirely from making money via the upfront cost of the game to microtransactions for weapons and other items. According to the site Gamasutra, the experiment was a rousing success -- since going free-to-play in June, TF2's revenue has increased twelvefold. Gamasutra's article is a fantastic roundup of all the ways that Valve has managed to keep the TF2 community engaged lo these many years, so I won't try to sum it up here.
Although this approach is novel, it's certainly not unique to TF2. The massively popular World of Warcraft also went free-to-play last year, following the same model of users paying for upgrades and items. Many top tier games will make money on the back-end by creating new downloadable content for purchase. The incredibly popular indie game Minecraft has been adding content and gameplay modes for free since its release (and slowly raising the initial price for purchasing the game). But Valve's announcement that TF2 has seen such a sharp increase in revenue could presage a dramatic rethinking of the way games are sold and profitability is achieved.
Comments [6]
Yesterday, TF2 launched maybe there most ambitious update yet in "Mann vs. Machine." √http://www.teamfortress.com/mvm/ They definitely seem to be doing just fine with the Free to Play model. Such a massive update 5 years into a videogame's shelf life just goes to show the power a wonderful game created by forward thinking game developers can be. They have created such a strong community to support it's game and have even kept the casual gamer interested by allowing them to play for free whenever an update like this launches.
This free-to-play model is very similar to, and I wouldn't be surprised to find it was inspired by, the online multiplayer role playing game Kingdom of Loathing (www.kingdomofloathing.com). This humorous game is also free to play, and you can either donate real money to get a special "item of the month" each month, or spend more time accumulating in-game currency to get one.
Its a bit of a special case, but its been looked at before, valve did it right by not locking players who did not pay out of the game, they did not make it a pay to be stronger game, paying only saves you time. You can earn or barter your way into items if you are willing to invest the time instead of the money, and most items are simply cosmetic, and all additional weapons are balanced in that they have upsides balanced by downsides, so the game remains fair for all regardless of investment. The game had good will and was a very high quality title to begin with, this model might not work for most other games. This game has a unique style and a sense of humor, a very polished title that is still fun even years after its initial release, and the graphics have not really dated because of its unique visual style.
Furthermore its more about the fact that with steam they undermined the used game market. With steam they can ensure sales to play, and have been prone to aggressively lowering prices on older games because they've realized that some money from an old game is better than no money from an old game at full price. Since they've insulated their games from the used game market which used to be the bane of game publishers, they have the freedom to do things like make an older game free to play.
Alex, I enjoyed your post a great deal (I'm a big TF2 fan as well). However, I think it's a stretch to say that World of Warcraft has gone Free to Play. As the article you linked to points out, non-paying subscribers can only attain level 20 (yes, I do know how geeky this sounds), and can see a tiny portion of the game. WoW still has something on the order of 10 million paying subscribers.
This, of course, in opposition to games such as Guild Wars, D&D Online, Star Wars Galaxy, Lord of the Rings Online, etc. which run on models more similar to TF2.
All that being said, I think that OTM does a very good job of covering the gaming medium, especially in opposition to most of the other outlets. Thanks!
thanks for comment. That facet was in an earlier draft of this story (cut for length), but still very interesting aspect of the game. I kinda wanna pick up one of those Cryogenators.
"The company continues to create new weapons and items, which can either be found in-game, traded with other players, or purchased from Valve's "item store" for prices anywhere from $0.99 to about $8.00."
A bit of an incomplete picture. In addition to items developed by Valve and some tie-ins from other studios (disclosure: I work for one), there are a number of items created by the community at large. Once approved, a cut of the sales goes between Valve and the author of the item. This was also done for maps and other items.
Part of the picture isn't just developer driven content, but community generated content propagating
Source: http://steamcommunity.com/workshop/browse?appid=440&p=1
Sorry for being picky! I think it's an important note to the free-to-play model Valve incorporated includes the community itself profiting from paid items.
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