EDIT: I'm not as negative now as I was when I posted this originally. I'm still concerned. But really there's not much point in worrying about it. We'll just have to play it by ear and have as much fun as we can with the character concepts we've created.
This is a potential problem from this thread.
Edit number 2: This could still be a problem in the long run. I hope we can still have fun in Champions. But just be aware that the game is what it is and likely isn't going to get any further support.
I'm a little more optimistic now than when I first posted this. After popping into the game now and then and noting that Terry and others are indeed having a good time, I guess I'm happier about helping out, even if the game eventually does get shot down in a few years.
This is a potential problem from this thread.
Quote:[table][/table] Originally Posted by ruiiji
If a company has a stock quote, it will have an annual report as they are required by the market regulators to file these. Since PWRD is an "ADR" class stock, they file less info.
But in any case you do not need to own stock in any company to get this info. Go to their website and look for "Investor Relations".
http://www.pwrd.com/html/en/annual_report.html
I browsed through their last annual report, and unfortunately until the next one is published, you won't know if Cryptic's numbers will be called out as a line item.
Good info, thank you Ruiiji! I'll share a key part I found:
Quote:
[table][/table] We have adopted an item-based revenue model for all but one of our self-developed games and intend to apply this revenue model to most of our new games. This revenue model may have a negative impact on our financial condition and results of operations.
We have adopted an item-based revenue model for all of our self-developed games except for our first MMORPG, Perfect World, for which we use a time-based model whereby players are charged for their playing time. Going forward, we intend to continue applying the item-based model to most of the new games that we operate.
Under the item-based revenue model, players are able to play the online game free of charge for an unlimited amount of time, but are charged for purchases of in-game items, such as performance-enhancing items, clothing, accessories and pets. While several other online game companies have adopted the item-based model, it is still relatively new compared to the more proven time-based model and results in new risks and uncertainties for us. The item-based model requires us to design games that not only attract players to spend more time playing, but also encourage them to purchase in-game items. The sale of in-game items requires us to track closely consumer tastes and preferences, especially in-game spending trends. In addition, the item-based model may cause additional concerns with the PRC regulators, who have been trying to implement ways to reduce the amount of time that Chinese youths spend on online games. A model that does not charge for time may be viewed by the PRC regulators as inconsistent with this goal. We cannot assure you that the item-based revenue model will continue to be successful, or that it will not have a negative impact on our future financial condition and results of operations.
Our revenue recognition policy for the item-based games entails our best estimates of the lives of various items associated with each of our item-based games. As we adopted the item-based revenue model beginning in September 2006, we have a limited operating history and data for our item-based games on which to base our revenue recognition policy for such games. With respect to permanent ownership items that we sell to players, we recognize revenues over the estimated lives of such items. We consider the average period that players typically play our games and other player behavior patterns to arrive at our best estimates for the lives of these permanent ownership items, which, in some cases, may be as long as the estimated life of the related game.
However, given the relatively short operating history of our item-based games, our estimate of the period that players typically play our games may not accurately reflect the actual lives of the items. We have been revising our estimates as we continue to gain operating data and refine our estimation process and results accordingly.
Any future revisions to these estimates could adversely affect the time period during which we recognize revenues from these items. For example, an increase in the estimated lives of these items would increase the period over which revenues from these items are recognized. See ?Item 5. Operating and Financial Review and Prospects?Critical Accounting Policies?Revenue Recognition.?
6
If we are unable to successfully develop, launch and/or operate additional online games that grow our player base and increase our revenues, our future results of operations will be adversely affected.
In order for our business strategy to succeed over time, we will need to continually develop, launch and operate new online games or license or acquire new games that are commercially successful. We will need to do this to both replace our existing online games as they reach the end of their useful economic lives, which we believe are typically three to five years for most of our online games, and to meet our growth strategy of operating a larger number of online games that grow our overall player base and increase our revenues.
We plan to invest a significant amount of financial and personnel resources in developing, launching and operating new online games. The success of our new online games will largely depend on our ability to anticipate and effectively respond to changing consumer tastes and preferences and technological advances in a timely manner. We cannot assure you that the games we develop will be launched as scheduled, viewed by the regulatory authorities as complying with content restrictions, attractive to players, able to compete with games operated by our competitors or commercially successful. In addition, as we introduce new games, some of our existing customers may switch to the new games. If this transfer of players from our existing games does not grow our overall player base and revenues, our growth and profitability may be materially and adversely
affected
But you know what I find is crazy? In not section do they mention how they plan on attracting new players. Champions Online is not advertised at all by Perfect World to my knowledge, it's all word-of-mouth. Any you know what f***s over word-of-mouth more than anything? Customers getting frustrated with half-baked content and no new additions.
Additionally they don't even mention the fact that is cheaper to keep making new content for an existing game, whereas creating or buying up a created game engine is FAR more expensive. Makes me wonder just what the hell they are spending their money on...
This focus of PWE's model neglects to pay attention to the fact that for this specific market it's content in the form of explorable stuff and powersets and freeform slots (or lifetime access) that is the REAL driver of the business. Apparently keys might be a part of that, as it all goes into the same revenue pool.
Do note that they say this stuff IS tracked "closely" whatever the hell that means exactly is anybody's guess. I'm not even sure if most of the Cryptic employees know the answer to that. Also leaves me wondering if that is a good tracking system, or if it's as finicky as the Auction House GUI or the ill-tested Level 60 Mega D patch.
![[Image: viewpost.gif]](http://co-forum.perfectworld.com/images/buttons/viewpost.gif)
Quote:[table][/table] Originally Posted by rapierwhip
It is the exact same thing as a grab bag... even has the same price tag associated with it. the only difference is that you have to find the bag as a drop and buy the right to find out what you should have been awarded without having to pay extra for it. To the best of my observations, the boxes are not hard to find at all... I found three in less than five minutes of random mob bashing... and the boxes seem to have replaced normal drops entirely since in that same five minutes, I got exactly two other drops: both recog tokens.
I've stuck in here through targeting bugs, costume bugs, power bugs, power nerfs, administration overhauls, Vibora Pay scandal, APs, CSs, and Alerts, and thought that nothing could actually drive me away from this game. Paying for the loot that I should get for free through normal game play might just be the thing though.
They have something similar to this in DCUO, called Promethium Lockboxes. You get the box randomly in a loot drop and have to buy the key to open it... but here's the thing: Legendary Members (i.e. subscribers or Gold Members here) get an unlimited number of keys for free. I never really thought I would see the day when I would say that Sony is treating its customers better than another company.
Quote:
Quote:I haven't been playing lately so I haven't had to check this out yet, but this paints a scary picture of what this game might become if this is accurate and intended to be the way things are going to be for now on. The idea of even non-subscribers being expected to gamble in order to get access to loot (and I assume by extention random gear) is already bad enough. But to do that to people that already subscribe takes it to a whole other level.
Doing it to non-subscribers is bad because it expect them to become gamblers in order to financially support the game they're playing for "free". But bad as that is there is a justification for that--the game is "free", it has to make money to support itself some way. Its an (horrible) alternate business model in a game that requires no monthy payments to sustain the game.
But isn't financially supporting the game what we have always payed $15/month on a subscription for? What's the justification for doing the same to subscribers? Double dipping much?
Quote:
[table][/table] Originally Posted by Quoted Report posted by agentnx5
In order for our business strategy to succeed over time, we will need to continually develop, launch and operate new online games or license or acquire new games that are commercially successful. We will need to do this to both replace our existing online games as they reach the end of their useful economic lives, which we believe are typically three to five years for most of our online games, and to meet our growth strategy of operating a larger number of online games that grow our overall player base and increase our revenues.
In other words, they don't CARE about the growth and longivity of the game. They just want to regurgitate games and keep them around while it brings them profit.
And the difference with other games/companies? Other games have to keep their game growing and their players occupied in order to retain their players--the game has to be sustained. Here, the focus is on selling the players access to random loot while enough players play the game, then close it down when it meets the end of its economic usefulness. Growth in order to maintain the sustainability of the game is irrelevant. The game doesn't have to be sustained, just generate enough money on the here and now to keep it running then close it down when the players no longer care.
Quote:As someone still nursing the wounds of NCsoft's "realignment" that shut down City of Heroes... that statement about a game outliving its economic usefulness isn't very encouraging.
Edit number 2: This could still be a problem in the long run. I hope we can still have fun in Champions. But just be aware that the game is what it is and likely isn't going to get any further support.
I'm a little more optimistic now than when I first posted this. After popping into the game now and then and noting that Terry and others are indeed having a good time, I guess I'm happier about helping out, even if the game eventually does get shot down in a few years.