Bioware's perpetual revenue stream
One might think from reading this post or this one that I might have something of an interest in perpetual revenue streams. That would be a correct assumption. In particular, I am interested in how publishers can make money on the same product almost indefinitely without being in the massively multiplayer market.
When you release a title like Neverwinter Nights, which is built upon the foundation of unlimited extensibility, the potential for creating more products based on that foundation should be apparent from the start. I am not going to pretend that someone in Bioware saw this potential from the start, though I would like to think so. Regardless of when it happened, Bioware has definitely seized the opportunity, and has used the power of the Internet to their advantage.
Since Neverwinter Nights was released in 2002, there have been two expansions released and many different versions of the game. Over time, Bioware began selling premium modules on their website. Right now you can buy Pirates of the Sword Coast, which has not seen retail release, for $9.99. Ten bucks is a small enough sum that I'd be willing to pay it, and enough money that Bioware doesn't even have to sell that many to make money. Add to the fact that this is for a download, and they have also eliminated packaging and distribution costs. Everybody wins, well except for the regular distribution channels.Even then, Bioware has managed to do seven retail releases involving Neverwinter Nights, keeping their title in the public eye. The latest, Neverwinter Nights Diamond Edition includes all the premium modules except for the very latest, both expansions, as well as previously released modules that were included on their website for free. All this for $30, it's practically a steal. The best part, all of the product included has been marketed and sold already, so most of what they are selling has already generated revenue, and possibly a profit.
The downside, as I mentioned yesterday, is that Neverwinter Nights was a title that needed time to mature. This revenue stream was largely dependent on a product that was going to rely on some consumer patience to be successful. Even so, I think that Bioware is demonstrating how you can offer a product, keep it on the market, and still retain a varied play experience by means of built-in extensibility. This may be one avenue of keeping the PC gaming market alive.
When you release a title like Neverwinter Nights, which is built upon the foundation of unlimited extensibility, the potential for creating more products based on that foundation should be apparent from the start. I am not going to pretend that someone in Bioware saw this potential from the start, though I would like to think so. Regardless of when it happened, Bioware has definitely seized the opportunity, and has used the power of the Internet to their advantage.
Since Neverwinter Nights was released in 2002, there have been two expansions released and many different versions of the game. Over time, Bioware began selling premium modules on their website. Right now you can buy Pirates of the Sword Coast, which has not seen retail release, for $9.99. Ten bucks is a small enough sum that I'd be willing to pay it, and enough money that Bioware doesn't even have to sell that many to make money. Add to the fact that this is for a download, and they have also eliminated packaging and distribution costs. Everybody wins, well except for the regular distribution channels.Even then, Bioware has managed to do seven retail releases involving Neverwinter Nights, keeping their title in the public eye. The latest, Neverwinter Nights Diamond Edition includes all the premium modules except for the very latest, both expansions, as well as previously released modules that were included on their website for free. All this for $30, it's practically a steal. The best part, all of the product included has been marketed and sold already, so most of what they are selling has already generated revenue, and possibly a profit.
The downside, as I mentioned yesterday, is that Neverwinter Nights was a title that needed time to mature. This revenue stream was largely dependent on a product that was going to rely on some consumer patience to be successful. Even so, I think that Bioware is demonstrating how you can offer a product, keep it on the market, and still retain a varied play experience by means of built-in extensibility. This may be one avenue of keeping the PC gaming market alive.
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bnielson
Bioware's Unlimited Adventures: Unfettered Blather contained two interesting blogs about Bioware's Perpetual Revenue Stream and about Neverwinter Nights being the new Unlimited Adventures. Unlimited Adventures being an old SSI RPG construction set. Since this is very similar in concept to my own article in the Escapist entitled Show Me the Money I wanted to put a link here to Unfettered Blather to show others are thinking of the same ideas.
28/02/06
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