a_skeleton_02
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+rep for posting actual numbers.At the free to play conversion in 2012 swtor still had 500,000 paying subs. They boasted 17mil+ monthly revenue after the introduction of a cash shop, and retained their premium subscriber base.
They didn't do it because they weren't making money. They did it because they knew they could make more. Blizzard introduced limited microtransactions in Nov 2009, long before subscriptions peaked a year later in Q4 2010. Microtransactions now make up ~20% of WoW's revenues. Players willing to pay a monthly sub are dropping industry-wide, while microtransaction revenue is on the rise.
These are companies who are very aware of current consumer trends & desires, and they will continue to craft strategies that reflect them.
If you break it down to some business 101 shit and forget you are dealing with something you have apersonal and emotional biastowards you get this.
This widget cost 300 million to make, Once the widget is made it generates 15 million a month profit for 4 years. Is the widget a flop?
If the widget cost 300 million to make, Once the widget is made it generates 15 million a month profit for 4 years. The makers of the widget projected it to make 30 million a month profit for 4 years. Is the widget a flop?
The second situation could maybe be construed as a "flop" because of bad projections but they still turn a profit just not as much as they wanted but I doubt anyone would call it a failure. Xadion is correct with the ROI talk because they probably could of made a better a investment for their 300 million but at the time everyone was trying to get that WoW money and they got greedy.