I’ve recently been invited to the local Hellgate: London launch, which is going to take place sometime during December next month. If you’re a regular here, then you may be aware that I’m not a big Hellgate fan.

Why then am I going?

Aside from the prospect of free chow, I’ve been itching to go because I’m very curious as to how IP e-Games, a local MMO publisher, would handle the game’s retail and payment scheme.

You see, Hellgate isn’t very cheap. It’s currently selling at over PHP 2,200 in retail (roughly a little over $50). Compare it to the majority of other local MMOs whose clients are distributed dirt-cheap or practically given away, and you’ve got yourself a problem.

If IP e-Games drops the price, it would suffer a huge loss for each unit sold. But wait! Consoles are sold at a loss, right? That may be correct to a certain degree, but the console gaming market is way different because while the hardware is sold at a loss, the console makers make money through the games themselves.

Oranges and apples. These new-fangled MMOs are very different from consoles from a business perspective. MMOs get their revenue from the monthly payments made by its players. If e-Games gives Hellgate away and manages to rake in a sizable number of subscribers, I don’t think the monthly revenues would make up for the losses for each copy of the game given away.

Another problem: how much would e-Games charge monthly? According to Flagship, the U.S. subscription is $9.95. Convert that to the local currency and you’ve got around PHP 420 per month.

Exactly how will PHP 420 compete with e-Games’ other free games? Interestingly, is e-Games still using its’ “Freedom to play forever” slogan?

Given the circumstances, I woud really like to know how the local publisher would handle the financial aspect of Hellgate because right now, I don’t think bringing the game here is feasible at all.

Post from: EveryJoe

Local Hellgate launch to answer questions about retail and payment scheme