Current Market Conditions Competitive Analysis

1438 Words Jan 14th, 2013 6 Pages
Week Three Team Assignment - World Of Warcraft

Eco 365
January 7, 2013

Week Three Team Assignment - World Of Warcraft
World Of Warcraft derives from the Warcraft series developed by Blizzard Entertainment. World Of Warcraft has been one of the leading multiple player online-based games on the market for years since its initial release. The game maintains a high level of subscriptions that cost a fixed rate of $15 per month. The game itself once controlled over 50% of the multiple player market shares in 2006 for the western region. Subscriptions have reached more than five million by 2006 and exceeded 10 million subscribers for a 2nd time by the end of 2012. Subscriptions for this game have even exceeded 14 million in year 2009. At
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The price of $15 per month or equivalent in other regions, are a standard set by previous successful developers within the market. The pricing structure provides foresight of future profits based on subscription levels. Increased monthly subscriptions have become more unattractive as other platforms for massive multiplayer games have moved towards free to play gaming and focus their revenue earning on selling in game items. Consumers have steadily started to consider other games that have no cost to play. Free to play games have been known to rise quickly in subscriptions while still generating revenue from frequent players. Repeat players often seek out premium items paid for with cash. These items create a virtual market for virtual items and provide value by making them premium items or services.

Supply cost has decreased as technology improves and becomes cheaper in price. Supply for this market is based on the server performance with high volumes of users; along with, connection speeds for sending data back to users. Both of these variables are highly adjustable to meet minimum requirements. When servers or connection speed lack in performance, these types of games become affected by latency issues and make the game unplayable while online. Server performance is critical in maintaining player satisfaction along with other attributes in the game design. Improved technology has allowed developers to host…