Masochistic Devel's
Of course, then one looks at the latest Bruce Woodcock data on the combat-sim genre's share of MMOLG subscriptions (as opposed to fantasy, sci-fi/superhero and social genres) being only 0.3%, and the idea of targeting an underserved sub-segment of that 0.3% seems kind of masochistic.I think it is more a question of costs of creation, maintenance, and on-going development. If you can keep the costs down, much smaller subscriber bases can be profitable.
Oh, well.
When you compete in the same 'attention space' as the behom-o-crafts, you're not going to hit the top of Bruce's chart. But those charts don't show profit.
Think about hollywood movies and their opening weekend box office gross: if you're not number 1, you're viewed as a failure. Look at Clerks II which just came out. According to Mr. Smith, the movie cost $5 million to make and grossed $10 million on opening weekend (marketing costs not in that, but still, the point is there).
He explains that Jay and Silent Bob Strike Back was the model for his latest release. It generated $30 million in box office, but $36 million in DVD sales. You've just got to "plug lower numbers in the equation", as Mr. Smith says. A comparable result with Clerks II will allow Mr. Smith to keep making his movies for a long time - without requiring significant distributor investment.
A similar principle can be adopted in gaming, and I suspect that it is in casual games.
Create a game that will be successful and viable at 5,000 annual subscribers. Your annual gross revenue would be $600,000 [5000 x $10/month x 12 months/year]. With a planned minimum lifetime of 2 years, (hopefully longer but let's be conservative at this point): $1.2 million.
That has to fund: pre-launch dev, post-launch maintenance, and post-launch dev. Pre-launch dev time is hard to predict precisely, but let's say 18 months, for a total time horizon of 42 months. Since you want to take some money off the table, you need to do everything for an even million, giving you a return of 20% if all those numbers play out. In an oversimplistic view, that would give you a monthly budget of $23,000/month, or $285,000/year.
Can you create, maintain and continue to develop a game for $285,000/year?
Yes, you can. But this does describe the shape of the world of what you can afford to spend money on. It would have to be a very small staff and a small game, but if you accidentally end up with 7,000 or 10,000 subscribers, then things start to get very profitable.
It may not be the game you're dreaming of, but it is viable and can be successful. A gaming example, though non-MMO, is Combat Missions. Made by a small team, they made the game they wanted to make, and 'published' it themselves via mail order. When I first heard about this game in 2000 I think, I bought 4 copies for myself, my brother and friends. I spoke once to one of them (memory fails me), because I was curious about how effective the mail-order system had been for them. While I couldn't get any details, it was very clear that they were very happy with the results.
