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Originally Posted by errorjustin
They're not flawed, because they make a TON of money. The business model has been priven many, many times over.
I'm not saying I AGREE with monthly fees... I'm just saying people need to stop saying the business model is flawed. If it was, it wouldn't work.
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I'm going to say the model is flawed because it's like a chicken and egg situtation. Development dollars are very hard to come by in today's business place. So the company bets the farm on the latest MMORPG and they don't get the critical mass of people to buy the game to recover those costs or the monthly amount to pay for the infrastructure overhead can cost them millions in lost revenue, and in future sales too because people will become wary of their products.
It does work, but it's a big gamble. If I recall correctly there's a few MMORPGs that are not going to see the light of day because the developers decided that the risk was too high.