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Monthly Billing


Jodo Baas

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  • 5 weeks later...
Originally posted by swediot=)

if thats so im going for year

 

In my experience, doing anything OTHER than monthly is not wise. It's true that on a month-to-month basis it will cost you more. But what are you going to do after you subscribe for a year, then decide 4 months in that you just REALLY don't like the game?

 

You're stuck. The fee isn't prorated. You get NOTHING back. I've played EQ since release, and I've always paid monthly. And thank goodness I did too, because I'd need both hands and feet to count the number of times I've cancelled my account for extended periods.

 

Also, regarding the price points that people are guessing at. I think I heard someone above mention $10 as a possible price point. Unfortunately, I don't believe we'll ever see another MMORPG priced at $10 monthly (paying month-to-month). On the flip side of the coin, I believe there are MANY people (myself included) that won't bother with the game at ALL if they price it above $15 per month.

 

From a purely business perspective, what do they gain by pricing themselves out of the market? An MMOG makes it's money from being MM (MASSIVELY multiplayer). They need to stabilize their income. The only way to stabilize their income is to have reasonable prices and sell (accounts) in bulk. If they price accounts too high, then fewer people will subscribe. If fewer people subscribe, then turnover rate of accounts destabilizes their income to a point where it becomes almost unpredictable.

 

Think of it this way: Let's look at 2 "companies". I'll keep the numbers simple for calculation purposes.

 

Company 1: Charges $10.00 per month, leases 100,000 accounts.

 

Company 2: Charges $20.00 per month, leases 50,000 accounts.

 

Both companies earn $1,000,000 per month (gross) from their account income.

 

Now, in a given month, let's say 10,000 people decide to cancel their accounts (turnover kicks in). In this scenario, let's see who comes out on top:

 

Company 1: Loses 10,000 accounts. Income drops from $1,000,000 per month, to $900,000 per month.

 

Company 2: Loses 10,000 accounts. Income drops from $1,000,000 per month, to $800,000 per month.

 

The company with the lower monthly price point only lost $100k in income that month. The company with the higher monthly price point, on the other hand, lost $200k. And we're dealing with smaller numbers than the reality of the situation. EQ recently surpassed 500,000 active accounts (accounts being actively paid for at some regular interval).

 

Now, doubling the price point is not going to cut your customer base in half, like my example. Again, these are hypotheticals. But, doubling the price point WILL DEFINITELY lower your customer base. It's simple economics. Either way, the higher price point loses money faster than the lower price point. And when you take into consideration the fact that many people own multiple accounts, the problem begins to rise at a more geometric rate (since losing 1 customer means losing 2-3 accounts, depending upon the customer).

 

Businesses thrive on regular income. They need to be able to predict their income so that they can predict OTHER things in their company (salaries, new hires, layoffs, benefit packages, etc.) The only way they can effectively do that is to keep prices competitive.

 

This is why "mom and pop" shops all over the country (US) go out of business when Wal-Mart comes to town. They can't stay competitive against an adversary that sells in that much bulk.

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Well thought out and detailed Mujahid.

 

Sony will be looking for a break point. They want to see how much they can charge without losing too many customers. What does this mean? Well, the general concensus is $12.95-$14.95. The right price will land in there, and I don't think there is a single frequenter of these forums not willing to pay that.

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Originally posted by swediot=)

music gigs ofcourse you know playing in bars and stuff i dont do it for the money. its hella fun

 

Oh, so your a Dj. That's kool, we better stop this off topic now. But before i do, come pop into the =A= irc room soon. We can chat some more. :)

 

I now return this thread to it's purpose. ;)

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If it goes over 16...I'll play BHD thank you. My estimate is 14 maybe. They should look over these forums to see how many want the game to be below 15. I would like it at 5, but alas that can't happen. I mean with about 100,000 subscribers (This is just a random number) $5 a month would be...$600,000 a year! And just imagine that there are way more subscribers to SWG so...

 

My 2 cents...Or 600,000 dollars

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Originally posted by Lord_Vessen

If it goes over 16...I'll play BHD thank you. My estimate is 14 maybe. They should look over these forums to see how many want the game to be below 15. I would like it at 5, but alas that can't happen. I mean with about 100,000 subscribers (This is just a random number) $5 a month would be...$600,000 a year! And just imagine that there are way more subscribers to SWG so...

 

My 2 cents...Or 600,000 dollars

 

Come on, at least go up to $20. I certainly will, even though i will be skint. :(

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Originally posted by Mujahid

In my experience, doing anything OTHER than monthly is not wise. It's true that on a month-to-month basis it will cost you more. But what are you going to do after you subscribe for a year, then decide 4 months in that you just REALLY don't like the game?

 

I think it's all about compromises ;)

 

I bother if I have to pay month per month... but I agree with your opinion too :)

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Anyone who is concerned about paying who doesnt have a credit card, probably could use a bank debit card / Visa check card - the kind that take the money right out of your checking account. Other than renting a car, they can be used just like a credit card and no interest. At most banks, they are free and all you need to do is just sign up.

 

-cenotaph

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Originally posted by Kaiser Isaac

as far as how muchj i will pay will be..................$15...................... i dont think it will be at this right away i think they will draw people in to the game with like...$10..........then up the price..............

 

No, i think they will keep the monthly pricing at 1 fixed price. Each month. :)

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