Monetization in MMORPGs has always been a slippery slope, especially after the rise of free-to-play titles in the gaming industry. There are MMOs that use one or more monetization methods to continue producing content, maintain servers, develop other titles, and keep things running. But not all monetization methods are seen equal and there are glaring advantages and disadvantages to many of them. We wanted to take a look at the most popular MMOs out right now, analyze their monetization and discuss what an ideal monetization format could look like.
Retail
Notable titles: The Elder Scrolls Online, New World
The Elder Scrolls Online and New World are the two biggest examples of games you can jump into by paying for the base game and regular expansions. You do not have to pay monthly to monthly subscription fees to play the game and such games typically have optional purchases like cosmetics or an optional subscription for bonuses.
New World is driven mostly by cosmetics, and when I gave the game a try at launch, the cosmetics on offer were typically priced at around $20 or lower. A lot of players use not just social media platforms to express themselves, but games as well.
There are countless free-to-play games out there that have generated billions in revenue solely through cosmetics. Players do not shy away from spending money to look cool and there is absolutely nothing wrong with that.
When it comes to retail games, harmless microtransactions that do not disrupt the competitive integrity of leaderboards or PvP gameplay are completely fine in my eyes. There are arguments that can be made against additional monetization past the full-priced cost to entry for such games, as many players hate it when the best cosmetics are locked behind the store instead of in-game achievements and that is a fair point.
Games should definitely reward you for your time commitment and developers can find a happy medium where they can monetize via skins without making their hardcore players feel left out. Popular looter shooter Destiny 2 manages to implement its cosmetics system quite fairly. You can purchase cosmetics or you can farm a special currency that lets you purchase past cosmetics after they are brought into the store rotation for an earnable currency.
Subscriptions
Notable titles: World of Warcraft, Final Fantasy XIV
Subscription-based titles like World of Warcraft and Final Fantasy XIV typically require you to purchase expansions as well. This is the most expensive monetization format at face value ignoring any optional purchases.
Subscription-based games were the norm in the MMO space and while there are “free-to-play” monetization models out there, the inclusion of battle passes and “optional” VIP memberships heavily incentivize players to pay regularly anyway. But there is a clear distinction between absolutely needing a subscription to play the game versus having battle passes or memberships that are optional.
Assuming there are yearly expansions, you can spend up to $250 if you have to purchase an expansion as well. It is still a steep asking price versus $10-20 battle passes that you buy two or three times a year or VIP memberships.
The Elder Scrolls Online also has the same monthly subscription fee as World of Warcraft ($15 per month) but are not forced to pay it. There is a lot of debate around mandatory subscriptions, but one cannot argue about a formula that has worked for over a decade.
We live in the subscription era in real life where people spend money on streaming services, cloud storage, or even services to unlock more horsepower on their cars. I don’t see a problem with the monetization model in a vacuum and it does work for stalwarts of the MMORPG industry. However, it might not be a viable monetization model for new releases in 2023 as most games are choosing to go the free-to-play route.
Free-to-Play with Microtransactions
Notable titles: Lost Ark, Guild Wars 2
I wanted to compare Lost Ark and Guild Wars 2 under the same umbrella. Lost Ark is a free-to-play title driven by its in-game microtransactions store and you also have the option of purchasing a battle pass. Guild Wars 2 is also no stranger to microtransactions, but it offers cosmetics and paid expansions.
Both games allow you to bypass grind by purchasing the premium currency but the biggest difference between the two is that you can farm the premium currency in Guild Wars 2 but you cannot do so in Lost Ark. This is exactly what changes the perspective of players about each of the titles.
You will have players who pay and progress their account faster than someone who doesn’t spend money on microtransactions. But MMO communities draw the line differently for different games, and understandably so. To some players, convenience items like gear slots might be pay-to-win while others might not feel the same way.
Games with microtransactions draw varying levels of criticism depending on how they are implemented but plenty of MMOs have gotten the formula right. For example, the monetization of Lost Ark leaves room for a lot of criticism and many might see it as a pay-to-win title, but it does offer a solid experience even if you do not engage with microtransactions. You will still be able to experience all of the content without running into a brick wall, and that is more than enough to keep many players happy.
Free-to-play with Gacha/Loot Boxes
Notable Titles: Tower of Fantasy, Lord of the Rings Online
Possibly the most controversial form of monetization to exist. Tower of Fantasy and Lord of the Rings Online both delve into gambling in different ways. While Lord of the Rings Online has loot boxes that offer fairly good rewards and are mostly targeted at players with deep pockets or veterans who have enough points to spare for keys.
While I am not a fan of LOTRO’s loot box system, you can choose to filter your loot and ignore most types of boxes once and for all. Being able to buy loot boxes and gear is something I am against. LOTRO still has some of the best content that any Lord of the Rings fan can experience despite the game’s shortcomings and it is probably what keeps fans coming back to the game.
Tower of Fantasy takes the gambling mechanics to a whole new level by making you spend premium and earnable currency on random Simulacra which are essentially weapons and you can use associated skins on them.
You get to use Simulacra, which are essentially classes in the game, based on what you get from the gacha system. If you want to get the most out of your class and push it to the limits, you have to obtain your weapons not just once, but multiple times.
While you may not need to spend money on the game as someone with a decked-out account could aid you against bosses or help you in raids, the game has systems to let you know that you are falling behind. From leaderboards to PvP, if you don’t have the right gear you will have a hard time keeping up if you are competitive by nature.
I feel that such a form of monetization simply should not exist in MMORPGs simply because of how frequently you interact with other players. Gear should be earned in MMOs and not bought and while others may have a different opinion regarding it, I do not like the monetization format Tower of Fantasy introduced at all.
Play-to-earn / Web3
Notable titles: Ni No Kuni: Cross Worlds, Bless Global
Whether we like them or not, play-to-earn MMOs are becoming more and more popular. I wrote a scathing review of Ni No Kuni because of how it massacred the Studio Ghibli charm. In concept, play-to-earn titles want to offer players a chance to make money off of the games they play but most of the titles we have seen so far are either cash grabs or so aggressively monetized that it rubs people the wrong way and the games just “die”.
As MMO players, it is only natural for us to want to chase better gear. But some of the games in the play-to-earn space essentially want you to treat the games as your second job. Bots and cheaters are rampant in some of the web3 titles and there is plenty of economic manipulation happening in them which can make your time investment unrewarding.
Maybe one day we will have some games that do right by their playerbase and actually turn this monetization format into a rewarding experience. But as it stands, things are not looking any good.
Why MMORPGs are difficult to monetize
We talked about Ghostcrawler’s exit from Riot Games recently and what the future of Riot Games’ MMORPG could look like. Something interesting that we learned from a chat he had with YouTuber ‘Kanon’ is that Riot Games believes a free-to-play model that is solely driven by cosmetics is possible.
But, just because it is possible does not mean that it will work. Ghostcrawler pointed out that a cosmetics-driven game works only when there are enough players to support the game. Riot Games has done the math and it would rather have 15 million players spend around $15 a month than have a smaller group of players who could potentially spend much larger sums.
MMORPGs also have a lot more expenses to bear compared to multiplayer games of similar size. Games like Counter-Strike, Valorant, and Apex Legends are largely unchanged. You get a character, a map, or a new weapon every 3-4 months and most cosmetics. In the case of battle royales, sometimes players don’t even get brand-new maps, and existing ones get slightly reworked.
In comparison, MMOs have to push out dungeons, raids and cater to all segments of the playerbase. It makes sense for MMOs to take more development and upkeep costs than other multiplayer/live-service games which is why I can get behind paying more for them. But it would be a lie to say publishers can’t be greedy and sometimes monetization can be overbearing. Finding the right balance is difficult and it is one of the reasons many prefer the non-nonsense approach of a flat subscription cost or a full-priced entry, and no other strings attached to them.
What is the best monetization format for MMORPGs?
I personally prefer Guild Wars 2’s monetization as it finds a happy medium between paid and free-to-play titles. It does have microtransactions driven by mostly cosmetics and you can earn the premium currency for free. You can either experience the game with a free account or obtain all of the expansions for $50.
WoW and FFXIV are two of the most financially successful live service games and they are in a position to command a subscription-based model, but it is not something most new players will be willing to invest into.
A free-to-star model with paid expansions and possibly additional cosmetics instead of a subscription is what I would ideally like from an MMORPG. I understand not all games are made the same and some games may need to delve into multiple monetization channels to keep things running.
The quality of the game and the experience it offers matters the most and I would not make any compromises on that front. I don’t mind spending a few extra dollars to show support for a game that I play regularly but it also needs to respect players’ time investment and offer a fair experience if there are any competitive elements involved.
We have transitioned from a subscription era to free-to-play games with countless avenues for monetization. Things have changed a lot in the MMO space and we would love to hear your thoughts on how upcoming games should approach monetization in the future. What is your favorite monetization format? Do you think old-school subscriptions are the way to go, or are free-to-play titles the unshakeable future of the MMORPGs to come? Let us know!
