$50 for a Massively Multiplayer Online game, plus $15 a month? "That model is going away" says K2 Network's Joshua Hong as MMO's become a dominate form of entertainment in the 21st Century.
This week, meet Joshua Hong, Co-founder and CEO of K2 Network. He's the man who believes Massively Multiplayer Online games (MMO's) will become one of the most significant forms of entertainment in the 21st Century.
K2 Network is not only a gaming company but a service company. Six years ago, Joshua began porting MMO's from South Korea to the states. The company recognized an emerging "microtransaction" business model with MMOs in the Asian market. It became apparent that the business model was a perfect opportunity to be mirrored in the states.
Most MMO's use a subscription-based model in the states. As a workaround to compete, K2 Network offers free-to-play MMOs with the same high quality game play.
Will K2 Network's MMO approach succeed?
Hong replies, "The pricing mechanism in the U.S. retail video game space... is not well-thought out. There was only one-way for the MMO, you pay $50 for the box, and you pay $15 a month. That model is going away."
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Posted by kardall on 03/06/2008 at 09:58:13 pm in GigaOm Show
I don't know how I missed this episode... anyway.
I would like to comment on the K2 model. Yes, it's great over seas, it's picking up over here in the west.
The problem is, when you logon to World of Warcraft, or Everquest 2 or whatever game that is US based primarily, you see a level of quality in the game. You also see a differentiated gaming experience.
I have played a few games from K2 and they're very VERY similar in style/story etc.
MU Online (please), Knight Online (o m g no). Both of these are different "styles" but same background gaming experience. Kill to experience, get new gear from drops, repeat. The one thing I did like about MU Online was the "events" that took place during certain times to take over a building or what have you.
Apart from that, a lot of the games are replica's of US games, for free.
Not saying it's a *bad* thing per se, but it's been done before, and I feel they're just trying to take what other people do in the west, make it an eastern game and make more money. Good on ya if it works, but I'm still not sure i'm ready for it. I mean... I play a lot of games that have high quality graphics for the same monthly fee, and I would pay nothing for lower quality graphics for nothing.
However, the background story and/or gaming environment are completely different. In the Western pay-to-play games, you have people who (usually) want to play to enjoy the game. In the Korean markets and Asian markets in general, you get players who want the best of everything so they can whip through the content, kill everyone else, and stay on top.
I would say, a good mix of the two is EVE Online. mix-mash of both systems and playerbase, but... I don't know, it's just different. But cool.
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Posted by NochnoiDOZOR on 02/03/2008 at 03:01:11 am in GigaOm Show
"I was mainly commenting on the general business model these companies are adapting.
I do understand your point though. I haven't played Warrock or any K-2 game, but I have played a few Gamescampus games extensively. Gamescampus has had their issues that leave bad tastes in users mouths. various bugs and hacking has decimated the in-game economy of Shot-Online, Gamescampus's flagship game. Lack of support and irrational customer service has really angered many. They feel the company is only worried about rolling out new "trinkets and items" rather than improving the overall experience of the game. From what your telling me, S.O. users should actually be grateful that Gamescampus hasn't done some of the things K-2 has."
Exactly. K2 is not the bastion of a new form of MMO business model. I mean hello, IT HAD AN F- RATING on the Better Business Bureau for years which has only recently come up. Rest assured however, if you have a problem logging in to your premium account or using the in-game power up store, K2 will come running to you with hotfixes and more help than you can poke a stick at. But post a bug report or hacking accusation? They go straight to the trash can.
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Posted by EddieLee on 02/01/2008 at 07:50:40 am in GigaOm Show
Loved this episode.
The best example of this model is (oh god) Maple Story. Look at how popular that MMO is, it's got tons of users and it's completely free. I'm sure they make tons of money from their micro transactions, you can even buy them at retail...
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Posted by Cirris on 02/01/2008 at 05:07:41 am in GigaOm Show
"You've heard of K2, but obviously not too much. Hong has no idea what he's talking about. Take for example, the supposedly popular MMO (by K2 Network) - Knight Online.
Non-paying members are FORCED into paying a subscription fee to play the game because 1) paying members cannot be banned for using game hacks, 2) once the servers reach capacity, non-paying members are ejected to make room for paying customers. However, the fact that 60% of players online at any time are away from they keyboard (selling things) means that non-paying members never get to play. And 3) the servers are shocking. They haven't bene upgraded in years and suffer frequently from terrible lag and connection issues. K2 recently unplugged some of their newest servers to save money, despite the fact that game membership had been growing steadily. Why? To reap as much profit as possible.
How in Christ's name is the 'old model' going away when Hong obviously vigorously supports it? Because it makes the most money. And money is what K2 is all about."
I was mainly commenting on the general business model these companies are adapting.
I do understand your point though. I haven't played Warrock or any K-2 game, but I have played a few Gamescampus games extensively. Gamescampus has had their issues that leave bad tastes in users mouths. various bugs and hacking has decimated the in-game economy of Shot-Online, Gamescampus's flagship game. Lack of support and irrational customer service has really angered many. They feel the company is only worried about rolling out new "trinkets and items" rather than improving the overall experience of the game. From what your telling me, S.O. users should actually be grateful that Gamescampus hasn't done some of the things K-2 has.
Read More »
Posted by NochnoiDOZOR on 01/31/2008 at 11:28:49 pm in GigaOm Show
You've heard of K2, but obviously not too much. Hong has no idea what he's talking about. Take for example, the supposedly popular MMO (by K2 Network) - Knight Online.
Non-paying members are FORCED into paying a subscription fee to play the game because 1) paying members cannot be banned for using game hacks, 2) once the servers reach capacity, non-paying members are ejected to make room for paying customers. However, the fact that 60% of players online at any time are away from they keyboard (selling things) means that non-paying members never get to play. And 3) the servers are shocking. They haven't bene upgraded in years and suffer frequently from terrible lag and connection issues. K2 recently unplugged some of their newest servers to save money, despite the fact that game membership had been growing steadily. Why? To reap as much profit as possible.
How in Christ's name is the 'old model' going away when Hong obviously vigorously supports it? Because it makes the most money. And money is what K2 is all about.
Read More »
Posted by Cirris on 01/31/2008 at 10:36:42 pm in GigaOm Show
Great episode. Very informative. I've heard of K2 and WarRock from fellow gamers who play the popular Golf MMO Shot Online (gamescampus.com). Word of mouth seems to be the best marketing for these types of genres. Also, I agree the "Item fee" business model is slowly taking hold over the old "premium" models that Americans are used to. Very ingenious idea if you don't have funds to push a huge marketing campaign.
In addition, I'm liking how Joyce Kim is progressing as Hostess of the show. She seems to be more comfortable in her new role, where as before she seemed tentative. I also loved her outfit on this show, very elegant.
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