Author Topic: Things turning to 'free' (Read 7721 times)

Sean Locke Photography · « **on:** August 10, 2012, 22:24 »

Didn't know right off if this had any relevance, but still interesting...
http://cnnmoney.mobi/wk_snarticle?articleId=urn:newsml:CNNMoney.com:20120810:star-wars-free-play:1&category=cnnm_business

Karimala · « **Reply #1 on:** August 10, 2012, 22:51 »

I've seen artists setting up stores in Second Life where they sell their virtual art as virtual home decorations. Some make some pretty decent money doing that. Not quite the same thing, but thought I'd throw it in anyway.

cathyslife · « **Reply #2 on:** August 11, 2012, 06:06 »

When I click on your link, Sean, I get a 404 article not available.

Sean Locke Photography · « **Reply #3 on:** August 11, 2012, 06:46 »

Sorry:
http://money.cnn.com/2012/08/10/technology/star-wars-free-play/index.html

PaulieWalnuts · « **Reply #4 on:** August 11, 2012, 06:57 »

I must be missing something here.

They spend over a hundred million dollars on a game and make it free because another company is doing the same? How will they make money this way? If they make all their games free how will they stay in business?

Jo Ann Snover · « **Reply #5 on:** August 11, 2012, 07:04 »

As a parent, I would note that these "free" games are anything but - much more expensive long term than buying a game for $60 IMO.

I've tried negotiating lifetime caps on spending for these "free" games so that my kids don't ending up putting more than a certain amount through the shredder (I guess you can tell what I think of these expenditures but I try not to judge...too much)

My formerly X-box addict son hasn't touched it in nearly a year, having moved to Steam and playing games on a PC again. Some of the games there are straight purchases, but many are the free plus in-game spending.

Sean Locke Photography · « **Reply #6 on:** August 11, 2012, 07:11 »

I got all excited seein SimCity on FB, but after playing for 10 minutes, I can't do anything without spending real cash or wasting time on non game things. So I dropped it.

My son was devastated last year when Lego Universe, a mmpog, shut down after a year in business.

bunhill · « **Reply #7 on:** August 11, 2012, 07:30 »

Quote from: Karimala on August 10, 2012, 22:51

I've seen artists setting up stores in Second Life

people are still on Second Life ?

StockBottom · « **Reply #8 on:** August 11, 2012, 07:37 »

it's a cut-throat business.

when they reach this stage, giving the product away in order to profit with in-game upsells (which is the same Zynga is doing) i think it's a bad sign for the whole industry, as the next step is giving away the product for free to profit from advertising alone, and finally to close down the company and file for bankruptcy, we've seen this scenario in many other industries already, it's nothing new, and frankly kids should better play football rather than going retard with MMORPGS or whatever the name.

LSD72 · « **Reply #9 on:** August 11, 2012, 17:38 »

Just got back from a festival. One stage there had a title I think fit this thread very well. You too can celebrate Freestock.

Microbius · « **Reply #10 on:** August 12, 2012, 02:46 »

I read another article about this, but can't remember where.
From what I remember, Starwars has failed to get the number of players they hoped for so they are trying the model where anyone can play some of the basic stuff for free but you have to cough up lots of money for in game upgrades and exclusive content.
Also from what I remember WoW is still doing very well so it is a pretty specific thing to do with the Starwars game rather than a general trend.

I personally am not a big fan of the new model as it seems a lot like exploiting those with addictive personalities. You tend to get a few players paying crazy amounts of money because they are hooked and the rest paying nothing, instead of everyone paying a bit each, but there you go.

stockastic · « **Reply #11 on:** August 12, 2012, 10:53 »

Facebook is maybe the biggest 'free', ad-supported business model. And it's hitting a wall, as all the people who bought FB stock on day 1 will now tell you. There's just no way they can generate the amount of ad revenue needed to support their huge organization and meet its impossible profit targets.

One critical problem is that users are increasingly on mobile devices that just don't have room to display enough ads.

People are already getting turned off by FBs endless in-your-face tie-ins to profit generating 'apps' and other inline spam generators. I think it's inevitable that FB either faces big competition or starts to talk about a paid 'premium' service. This might turn out to be the high-water mark for the 'everything online is free' model.

fotografer · « **Reply #12 on:** August 12, 2012, 11:13 »

Quote from: bhr on August 11, 2012, 07:30

Quote from: Karimala on August 10, 2012, 22:51
I've seen artists setting up stores in Second Life

people are still on Second Life ?

Yes, I think that for my brother and his wife it has become their first life!!!!! Sad!! She justifies it by saying that she is going to make a lot of money on it but I think they have yet to see a single cent and they are ploughing money into it.

StockBottom · « **Reply #13 on:** August 13, 2012, 10:38 »

Quote from: stockastic on August 12, 2012, 10:53

Facebook is maybe the biggest 'free', ad-supported business model. And it's hitting a wall, as all the people who bought FB stock on day 1 will now tell you. There's just no way they can generate the amount of ad revenue needed to support their huge organization and meet its impossible profit targets.

One critical problem is that users are increasingly on mobile devices that just don't have room to display enough ads.

People are already getting turned off by FBs endless in-your-face tie-ins to profit generating 'apps' and other inline spam generators. I think it's inevitable that FB either faces big competition or starts to talk about a paid 'premium' service. This might turn out to be the high-water mark for the 'everything online is free' model.

too late, LinkedIn is already market leader in paid premium social networking, and rightly so as LinkedIn is a useful service for business networking $$$.

stockastic · « **Reply #14 on:** August 13, 2012, 19:44 »

Quote from: StockBottom on August 13, 2012, 10:38

too late, LinkedIn is already market leader in paid premium social networking, and rightly so as LinkedIn is a useful service for business networking $$$.

LinkedIn's stock price has actually gone up at the same time FB's has declined.

Maybe if FB had introduced a paid version of the service, early on - no ads, 'groups' to manage who sees what, easy ways to turn off unwanted apps and notifications, wall customization - many people would have signed up and FB would have an income stream. But I think they're finding out that 'free' is forever.

Microbius · « **Reply #15 on:** August 14, 2012, 00:30 »

Quote from: stockastic on August 13, 2012, 19:44

Quote from: StockBottom on August 13, 2012, 10:38
too late, LinkedIn is already market leader in paid premium social networking, and rightly so as LinkedIn is a useful service for business networking $$$.

LinkedIn's stock price has actually gone up at the same time FB's has declined.

Maybe if FB had introduced a paid version of the service, early on - no ads, 'groups' to manage who sees what, easy ways to turn off unwanted apps and notifications, wall customization - many people would have signed up and FB would have an income stream. But I think they're finding out that 'free' is forever.

Agreed, and they are also discovering there's no point in advertising to millions of people who aren't prepared to pay for anything. Or that having a platform that has to cater to all those free loaders for the sake of a tiny percentage of people that are prepared to pay doesn't make financial sense.

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Author Topic: Things turning to 'free' (Read 7721 times)

Sean Locke Photography

Karimala

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PaulieWalnuts

Jo Ann Snover

Sean Locke Photography

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StockBottom

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