Reported from Yahoo Finance Chinese software developer and publisher of Perfect World and Ether Saga Online MMORPG's (PWRD) Perfect World Co. released 1st quarter earnings today first-quarter, earnings rose 36 percent from a year ago despite a drop in the number of players. Beating Wall Street expectations by 16 cents.
The Beijing-based company behind games like "Perfect World" and "Ether Saga Online" said it earned 215.4 million yuan ($31.5 million) in the three months ended March 31 compared with 158.4 million yuan a year ago.
Perfect World earned 58 cents per U.S. share, or 62 cents excluding some items. Analysts polled by Thomson Reuters were on average expecting earnings of 46 cents per share, an estimate that usually excludes items.
Sales were 425.1 million yuan ($62.2 million), up 40 percent from 303.2 million yuan a year ago. Analysts were expecting sales of $57 million, according to Thomson Reuters.
Perfect World shaves off 45,000 players from last years amount of 660,000 which is close to 7% of it's entire playerbase. Perfect World said that on average, 615,000 people were playing its games at any one time during the quarter, down from 660,000 in the same quarter a year ago. The number of active paying customers was also down, while the average revenue per user was up 62 percent, as the company became more aggressive in getting rid of cheaters. - courtesy of Yahoo.finance.com
Proving a fact that the Free to Play microtransactional business model really works. PW and ESO was making more money off of less people which in turns means a higher ARPU (Average Revenue Per User).
You can read more about the effect of ARPU in Richard Aihoshi's Free Zone: Community Matters, he goes indepth about the value of MMO ingame communities and how they effect a game. This recent earnings announcement backs up what Mr. Aishoshi is saying about the value of an ingame community because 62 million smackaroos just doesn't fall out of a boss monster's loot box.
The Bottom Line
Love 'em or Hate 'em Free to Play is succesful and is not going anywhere anytime soon, it might not be for everyone and you can't please everyone, especially the gamer community. If you could then it would really be a perfect world and that just doesn't exist.
Have fun and play safe,