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F2P Star Wars: The Old Republic could generate $150 million in annual revenues, claims Pachter

EA's decision to transition MMO Star Wars: The Old Republic to a mix of free-to-play and subscription model has the "potential to actually drive overall revenues higher", claims Wedbush analyst Michael Pachter.

"On average, the hard core free-to-play market generates higher revenues per user than its social counterpart, with many firms averaging $4 – 5 annual average revenues per user (ARPU) on average monthly active users (MAUs)," explained Pachter. "We think that a franchise such as Star Wars has the potential to attract 30 million or more MAUs, suggesting that the free-to-play version of the game has the potential to generate $120 - 150 million in annual revenues."

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Christopher1905d ago

One average, sure. But look at Zynga and its latest revenue reports. F2P is in decline on many fronts as well.

Trenta271905d ago

Maybe. It's different, seeing as Zynga makes completely different games in comparison to the ones average gamers play (Tribes: Ascend, Blacklight Retribution, etc)

There's also the fact that Zynga are completely idiots with executives taking leave due to the insider trading. That company is falling apart fast.

JBSleek1905d ago

Comparing the free to play market success to Zynga is like comparing the success of the banking system to Bank of America.

You can't deem an entire industry as sinking on the bets of a failing proposition which was faulty.

"Free to play is expected to grow to $2B revenue by 2015"

Trenta271905d ago

You misunderstood me. F2P is doing just fine. It's Zynga that's going down. Zynga shouldn't even be considered a game company. Facebook games? Really?

ATi_Elite1905d ago (Edited 1905d ago )

Zynga makes Facebook games and has completely OVER SATURATED Facebook with them. Their strategy has peeked and is now leveling off.

The 3D F2P market is very good and profits are increasing. F2P has games making lots of cash that are not even in every country. I find new quality F2P titles all the time. Currently playing Warface the Russian version.

League of Legends, Fallen Earth, Maple Story, Vindictus, Tribes:Ascend, Blacklight Retribution, Team Fortress 2, Super Monday Night Combat, Battlefieldplay4Free, plus many many more F2P games are all doing well.

You can make a $15 million dollar PC Game with the F2P format that can generate $5 million a month in micro-transaction revenue and pay for itself DAY 1 with a very micro advertisement from a Sponsor or two.

The ability to earn "Game Money" by doing surveys, watching videos, etc. is money the Game publisher is earning from it's sponsors along with revenue generated from gamers who buy in game items or customizations.

F2P MAKES CASH!

Christopher1905d ago

My problem was that Pachter's analysis included these numbers on F2P front. He mentioned them as an average whereas the first few years of Zynga and similar companies gave a huge rise to the F2P model.

I'm not saying that this would fail like Zynga, but that his estimates are off if he's using such data considering the steep decline of those type of services.

Wizziokid1905d ago

This will be the best thing for the game imo, it wouldn't have lasted much longer if they kept it P2P. the only question is can the F2P option sway people from the new WoW expansion and GW2

SeraphimBlade1905d ago

I'm actually quite looking forward to getting back to it since it went F2P. It's not a bad game at all, just not worth the monthly fee.

1905d ago
pompombrum1905d ago

Seriously, this guy should be number scrunching figures at his local Mcdonalds or something. Everything and I literally mean EVERYTHING that makes this game enjoyable is free. Maybe there will be some happy to part with a bit of cash but the Story is about the only real good quality about this game and you can experience that without spending a penny.

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