Nick Wingfield of The Wall Street Journal has a fascinating story about the economics of digital media masquerading as an article about online role playing games.
This week, Sony Corp.'s videogame unit said it plans to soon offer a free version of "EverQuest II," the company's flagship online fantasy game, while allowing players to upgrade their characters by purchasing better virtual armor and other items.
It's a big change from the $15-a-month subscription fee Sony normally charges for the game—a plan that will continue to exist for players who don't want to pay a la carte fees for virtual goods.
The games division of Time Warner Inc.'s Warner Bros. has already said its $15-a-month "Lord of the Rings Online" game for PCs will become free, with better virtual goods costing extra, starting in the fall.
Wingfield notes that this practice started in Asia, where rampant piracy made selling video games in stores a losing proposition. Rather than fold up tents or try to sue people, Asian game makers figured out how to make the games free but charge for extra goods within them.
Now devoted gamers might object to a policy that encourages the wealthy to buy their way to success rather than earn it through game play but the article also notes that a Dungeons & Dragons game that was near death when it was charging a subscription gained users and profitability by going to an in-game sales model.
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