Game Design on Item-Selling Based Payment Model in Korean Online

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Game Design on Item-Selling Based Payment Model in Korean Online Game Design on Item-selling Based Payment Model in Korean Online Games Gyuhwan Oh Taiyoung Ryu Division of Media, Ajou University Kama Digital Entertainment San 5, WonChunDong YoungTong-Gu SamChang Bldg, SamSungDong, GangNam-Gu, Suwon, Korea Seoul, Korea [email protected] [email protected] +82-31-219-1836 +82-2-544-6800 ABSTRACT monthly subscription fee as their primary payment policies. The paper covers issues of item-selling based payment But, they are quickly transforming their services either by model(micro-transactions) in Korean online games. Firstly, discounting service frees or providing the service for free of we characterize two payment models in online game: charge based on item-selling based payment policies. subscription based payment model and item-selling based payment model. We then investigate and characterize item- selling based payment model in online games and introduce two online games, “Kart Rider” and “Special Force” which have been successfully adapted item-selling based payment model as their business model. Finally, we discuss game design issues to efficiently accommodate item-selling based payment model in online games: how to balance between items obtained by game-money and items purchased by real Figure 1: Game play screen of “Quiz Quiz” money, how to abstract the function of such items, and how to strength events and communities. The survey will The online quiz solving game, “Quiz Quiz” developed by provide insight of designing micro-transaction policy for Nexon in 1999 is the first successful commercial game that the next-generation console markets with “Xbox 360”, had taken an item-selling method as its business model in “Playstation 3”, and “Wii” as its major axis. Korea [16]. Figure 1 shows game play screen of the game. After that, casual and easy-to-play online games have been Author Keywords providing their basic games for free, and pay for in-game Payment model, online game, item-selling based payment, items and additional services. Today, some of them have micro-transaction, game balancing been earning a few million dollars every month. Two online games, “Kart Rider” and “Special Force” which are INTRODUCTION developed by “Nexon” and “DragonFly”, respectively, are Collecting payment for network games can be defined as such examples [7, 19]. financial cost for game players requiring game play or The paper covers issues of item-selling based payment enjoying paid contents through internet from PCs or game model (micro-transactions, normally consisting selling and consoles. According to U.S. market intelligence provider buying in-game assets for under 15 USD) in Korean online IDC, Korea in 2005 occupies about 45% of the entire Asia- games. Firstly, we characterize two payment models in Pacific online game market excluding Japan [8]. Now, online game: subscription based payment model and item- Korea is one of the leaders of online game development in selling based payment model. We then investigate and the world. Hundreds of new online games have been characterize item-selling based payment model in online launched every year, only a few dozen survives in the games and introduce two online games, “Kart Rider” and competition due to the limited scale of Korea game market. “Special Force” which have been successfully adapted In order to survive in the fierce market, game service item-selling based payment model as their business model. providers have been suggesting various price policies to Finally, we discuss game design issues to efficiently obtain price competitiveness. New online games launched accommodate item-selling based payment model in online in the market are also trying diverse and sophisticated games: how to balance between items obtained by game- methods of payment policies to obtain price money and items purchased by real money, how to abstract competitiveness. In majority of MMORPG in the past had the function of such items, and how to strength events and been chosen subscription based payment models such as communities. Situated Play, Proceedings of DiGRA 2007 Conference © 2007 Authors & Digital Games Research Association (DiGRA). Personal and educational classroom use of this paper is allowed, commercial use requires specific permission from the author. 650 SUMMARY OF PAYMENT MODEL ON EXISTING ONLINE GAMES The majority of fee based online game is the MMORPG based on PC platform and video game platform in North America, Europe, and East Asia serviced in 2006. Most of these games have subscription based payment models such as daily, weekly, or monthly subscription fees as their payment policies. In the U.S.A. and Europe’s subscription based payment model are mostly MMORPG based on PC platform. The period limits are monthly basis and the fee is usually 12 USD ~ 15 USD per month. It usually reduces the resistance of players by servicing free of charge open beta service, providing free of charge service at the initial Figure 1: World wide trend of online game subscribers subscription level, or when purchasing a game package. The representative examples of this are “WOW (World of Figure 1 shows the online game serviced world wide with WarCraft)” by Blizzard, “City of Heroes” by Cryptic over 120,000 subscribers and their subscription trend [13]. Studios, and “Eve Online” by CCP [23, 1, 2]. As seen from the data of the graph, only a few online games dominates the majority of the game market, In addition, the In Japan, subscription based online services are provided to online games have quite a long life cycle over 5 years both PC platform games and game console platforms. They except for the WOW and they take subscription fee also have variety of genre such as role playing games, payment model as their business model. Such situation sports games, and action games. “Final Fantasy 11” makes it difficult for the new online games to enter the provided by Square Enix can be used by purchasing 7,800 market. Recently, new game companies endeavoring to JPY package and monthly fee of 1,280 JPY per a character participate in the game market are using the strategies such unlike the MMORPG in the U.S.A. or Europe [3]. “Final as fixing service fees at a lower price than the current online Fantasy 11” does not provide free of charge period and game providers or even providing free of charge services open beta service. “Monster Hunter 2” which is released on except for exclusive services to attract players subscribed to Feb, 2006 is the third series of “Monster Hunter” by other online game providers. The online game market in CAPCOM [14]. The game is put on sale for “Playstation 2” Korea where the majority of the games are composed of and provides both single player mode and networking mode online game can evidence this tendency. Starting from 2006, [14]. In order to use the networking mode, a player needs to the service fee of MMORPG market in Korea has been purchase the game package that costs 6,980 JPY and is clearly declined or has turned into free of charge services. additionally required to pay service fee of 840 JPI on monthly basis to use the multi-play server. The Winning Most of the subscription fee charges for online games in Eleven series provided by Konami for “Playstation 2” Korea have maintained a fee of 20,000 KRW to the platform is the only subscription based type of sports game subscribers on a monthly basis. However, as [22]. “Winning Eleven 9” released on August 2005 monopolization of small number of games such as “Lineage provides both single player mode and networking play [9]” and “WOW” grew, entrance of new MMORPG mode. The game provides service fees based on 7 day, 30 became gradually challenging, causing many of the day, and, 90 day periods. Furthermore, an extra fee needs to MMORPG providers to begin their services at lower fees or be paid by the online game players to use a specific soccer provide their services free of charge. In November 2005, team and specific team of a league for the networking play. “Uncharted Waters Online” published by CJ Internet has fixed the service price lower at 19,800 KRW, breaking the Limitations of Subscription based Payment with Term previous game providers’ monthly price of 20,000 KRW Expiration [21]. This trend was followed by NC Soft’s “City of The subscription based payment model adapted by majority Heroes” which begun its service in the 1st quarter of 2006 of MMORPG market can pose burden the game developers at 19,800 KRW and “Rohan” of Sunny YNK have also as well as the online game players. The financial burden fixed its’ monthly service price at 19,800 KRW [18]. In the carried by the game players stemming from the subscription case of “Guild War Chapter 2: Broken Alliance” provided based payment model can prevent the game players from by NC Soft, begun its service by fixing its monthly service experiencing new online games other than the games they fee at 9,900 KRW [6]. Besides the examples given above, are paying fees for. This will work as a barrier to the many of the new MMORPG such as “Gui Hon”, “Lapelz” entrance for arising new game companies trying to have declared to provide their services free of charge, participate in the market other than the few companies that which begun their services at the first half of year 2006 in dominate the current market. Korea [5, 17]. In the midst of swarming discount-pricing trends, “WOW” by Blizzard had little choice but to lower their monthly service price from 24,750 KRW to 19,800 KRW from April 2006. 651 As the free of charge casual online games have increased a pet and having no other special functions such as their market share in Korea online game market, online participating in combat with the player.
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