Oh Look, By Making LoTR Free Online, Revenue Shot Up

from the gee,-who-coulda-predicted-that? dept

About a year ago, we highlighted how the online MMO based on Dungeons and Dragons had gone free after trying to charge for a while, and showed how going free didn't mean you lost money, but it could work well as a part of a business model. And, indeed, reports from earlier this year showed that revenue had increased 500% for the "free" game -- once again highlighting how "free" does not mean "no money." In fact, the success of this free effort was so well received that Turbine's owners agreed to let them open up the Lord of the Rings MMO as well.

And, as a whole bunch of you have been submitting, once again, it looks like, by going free, they've been able to make a lot more money. In just a few months, they've doubled their revenue by embracing free. The game is now free to play, and so a lot more people are playing -- and many of them are choosing to then pay for certain additional offerings within the game. Once again, the point is the same, if you recognize where and how free fits into your business model, you can make a lot more money. No one is saying that everything is free or that anyone should stop making money. It's all about understanding the economics of how to use free to create a more efficient market to make more money.

Filed Under: business models, free, lotr, mmo
Companies: turbine

Success Of Free D&D Online Leads To Free Lord Of The Rings Online, Too

from the good-to-see dept

Slashdot points us to the news that Turbine is now planning to offer their Lord of the Rings Online as free to play starting this fall. This follows last year's decision to turn Dungeons and Dragons online into a free offering, which actually resulted in a massive increase in revenue. Nice to see them expanding this to other areas.

What may be more interesting here is that this decision comes soon after Warner Bros. (the studio) bought Turbine. Warner Bros., as a movie studio, isn't exactly known for embracing "free," so it's nice to see that they're actually okay with expanding this program. Maybe they'll actually learn something to take back into the other parts of the business...

Filed Under: business models, d&d, free, lord of the rings, online games
Companies: turbine, warner bros.

Dungeons And Dragons Online Highlights How Free Can Work As A Part Of A Business Model

from the nice-job dept

Pretty much everyone who reads Techdirt seems to be sending over the story of how Turbine has changed the business model for Dungeons and Dragons Online, going away from charging people $50 for the game and then $15/month to play, to a model where you can play for free and there are additional benefits to actually paying. And, so far, it seems like a massive success. Many more people are playing than before... and many of those who would never have paid (or played!) at all are realizing that there are good reasons to pay for some things within the game. While these sorts of situations can be a fine balancing act (if the company gets too focused on trying to convince people to pay, it could make the free stuff annoying), it appears that Turbine has done a good job finding a sweet spot -- making sure that if you just want to play the game for free, you can absolutely do that and it's perfectly enjoyable all the way through. Putting money into it just gives players certain additional benefits that they feel is worth it. Suddenly, paying the company money becomes a reasonable per transaction situation, rather than an ongoing chore. While it's still early, it should be worth watching to see how well this particular business model experiment goes -- but the early indications suggest that it's yet another example of how "free" can work as a part of a business model.

Filed Under: business models, dungeons and dragons, free, mmo, online games
Companies: turbine