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Old 05-16-2007, 12:59 PM   #780 (permalink)
Frax
Raider Nation In Exlie
 
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Join Date: Feb 2002
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Quote:
Originally Posted by I'm Rich Bitch View Post
It may seem crazy but I think Smed is crazy like a fox. The benefits of this strategy are:
  1. They are able to get a small profit from each little MMO they own. The Team size is determined by how much money each one is bringing in.
  2. They use the MMOs as sort of a "MMO University" to train new Developers and spot talent when they see it. When they do get a hit they will not have to interview to get talent to staff it.
  3. Their current staff of Developers and Designers can move to the "Next New Thing" while their MMO portfolio brings in money to fund the R&D. This keeps the Staff happy.
  4. They continue to gain Market Share with the collection of small MMOs.
  5. They keep the naming rights to MMOs.
  6. Eventually they will be able to create a messaging system between all games.
  7. Eventually they can develop a way to have 1 character that can be played in each game. No more leveling alts in each game.
  8. Use the Station Exchange concept as a way to get more money in addition to box sales, and Subs.
There is a reason this guy is still around and in such a powerful position. The fact that you guys underestimate him makes him even stronger.
I agree with that. I'm pretty sure development costs dwarf day to day operating budgets of these games. SOE already has an infrastructure in place, customer service, billing etc, snapping up a failed project on the cheap and tweaking it into even a modest money maker is good business.
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