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Black Market AH
So the lede here is that Blizzard may be introducing a “Black Market” AH into Mists that is capable of selling, say, the Ashes of Al’ar. We can have the discussion as to whether that devalues the 0.13% mount or not in a moment. What I am more interested right now is in the very notion that:
- These mounts (etc) potentially becoming BoE or otherwise Bind on Use.
- This being a brilliant money-sink into a rapidly inflationary economy.
- Blizzard getting into the business of selling in-game items with in-game currency.
That last point may seem odd (vendors have been around since Day 1), but what I mean is not necessarily the selling of the Ashes of Al’ar, but of any of the mounts/items that otherwise are only obtainable by grueling hours /played.
The initial reaction may be to say that this is counter-intuitive; by definition, what Blizzard is doing is making these items easier to obtain, which not only reduces their scarcity, but allows players to actually eat the carrot. In the long view, players actually accomplishing their goals is bad for business. As the classical argument goes, the Black Market AH should be the equivalent of cheat codes, which hollows out the enjoyment that comes from restrictions and limitations – an infinite life Super Mario Bros is a less fun Super Mario Bros.
However, I must ask this: is a Konami Code-less Contra a less fun Contra?
Nethaera on the Blizzard forums mentions:
It’s worth noting that since we’re in beta, we’re still looking into what our philosophies are for what should and what shouldn’t be on the Black Market. We’re also trying to discern the frequency/rarity of what shows up there as well.
So perhaps we will not ultimately see the Ashes of Al’ar on the Black Market after all.
But… why shouldn’t we? I brought up Contra because, as anyone who attempted to actually play the game without the Konami Code can attest, the game was stupidly difficult to beat within the default number of lives. So much so, that I imagine few would even try without the Konami Code. Thus, the Konami “cheat code” probably generated more enjoyment in the aggregate than was lost from “bypassing” the difficulty.
In other words, while the “legitimate” owners of Al’ar or the TCG items or whatever Blizzard ends up selling on the Black Market do “lose” something of value (scarcity), I believe the incremental gain by everyone else results in a net positive. Obviously, the average player doesn’t have the 200,000g+ that it will require to actually obtain these items, but they couldn’t get a group together to farm Kael’thas either. What the average player can do is farm herbs or run dailies and otherwise set X amount of gold as a goal to reach in the pursuit of Al’ar; something that was largely unobtainable before, but now has a “reasonable” path towards.
Will these undoubtedly obscene prices encourage gold-sellers? Maybe, maybe not. Just keep in mind that unlike the sale of BoE raiding epics – whose prices already can encourage gold selling – the final gold price of Black Market items are removed from the economy permanently, regardless of whether they can be resold or are BoP from the mailbox. Any reduction in inflation is a net positive for everyone.
So, I say: bring it on. And not just because I have oodles of gold with nothing else to buy.
P.S. The Daily Blink has the right idea:
D3-Day
As you slaughter more skeletons and zombies than should technically exist based on historical human population levels, remember this:
I never ended up pulling the trigger on the Annual Pass, and the RMAH fees Blizzard settled on are completely ridiculous, but hey. Give it the old college try, and let’s see what happens.
Oh, NOW We’re Being Reasonable
Every time Blizzard makes some nice progress towards actually implementing player feedback, the actual improvements remind me exactly how boneheaded they originally were. Take, for instance, the following hotfix:
UI
- Inactive guild leader replacement now requires 90 days of absence, up from 30 days. Ascent to the rank of guild leader is now only available to guild members at Rank 2, 3, or 4.
Oh, yeah, I remember that discussion now.
Of course, the irony of it all is that the change can be read so many different ways. Is this Blizzard (finally) responding to the player feedback lodged back before 4.3 went live? Is this Blizzard being tired of all the tickets and sleeper agent alt coups? Or is this a tacit Blizzard admission that, hey, maybe it’s not so reasonable to expect players to stay subbed each and every month? Especially given A) the two million people already out the door, and B) there are actually other games worth a player’s time to check out (MMO or not).
One such game is Blizzard’s own Diablo 3, out less than a month from now. But, honestly, it is just one of a mighty deluge of games coming out in front of the apocalypse.
In any event, I am very much enjoying this newer, more reasonable Blizzard.




Closer Look: Blizzard’s Q4 2011
Feb 10
Posted by Azuriel
When we last left our intrepid heroes in Q3 2011, WoW had lost 800,000 subscriptions and the following four salient points were made in the earnings call:
I suppose the holiday box sale and Annual Pass count as aggressive marketing, but let me not get ahead of myself. If you want to read along from home, Seeking Alpha will hook you up.
1. Is Bungie not working on Titan?
Eric Hirshberg from Activision Publishing buried this gem 25 paragraphs into vapid gushing of COD and Skylanders:
Looking further out, we continue to lay the foundation for our new universe from Bungie, one of the world’s best developers. Bungie continues to make incredible progress on what we expect to be a genre-defining new IP that will provide us with tremendous new opportunities and which remains one of our key strategic growth pillars for the future.
This may or may not seem a non sequitur, but I have always entertained the notion that the Bungie acquisition might have had something to do with Blizzard’s Titan development. Why?
Let’s look at the entrails. First, both Joe Staten and Rob Pardo have been playing it coy as recently as 2 years ago about Bungie working with Blizzard. But we also know that Bungie’s secret project “Destiny,” is slated as a sci-fi MMOFPS that is, quote, “WoW in space.” If you have a tinfoil hat handy, things can get even more bizarre when you consider that Ensemble Studios was working on a Halo MMO to directly compete with Blizzard… that was code-named Titan. And when Ensemble Studios was disbanded, several ex-members joined Blizzard. And now Bungie is here with a 10-year contract, making a brand new MMOFPS IP to be a “strategic growth pillar” for Activision Blizzard at the same time Blizzard is making a “casual” new-IP MMO that isn’t supposed to compete with WoW… that is code-named Titan.
Technically a lot of this is old news, and the earnings call did not reveal anything new either way. But in reading that paragraph under the Activision Publisher heading, it occurs to me that it is entirely possible that we could see two new, separate MMO properties out of Activision Blizzard even with WoW still sucking most of the oxygen out of the MMO room. In some respects, that outcome is crazier than Titan turning out to be a Blizzard-Bungie joint MMO.
2. Around 1 million Annual Passes sold… in the West.
Another initiative that has been very successful is the World of Warcraft Annual Pass. This program was announced at BlizzCon this past year. Under its terms, players who commit to being a World of Warcraft subscriber for 1 year will get a free copy of Diablo III, unique digital items in World of Warcraft, and other benefits. To date, we have signed up more than 1 million players in the West for the World of Warcraft Annual Pass.
The more I think about that number, the crazier it ends up being. While the Annual Pass appears to be non-binding (your access to D3 will simply go away), can you otherwise imagine another MMO who can count on 1,000,000 Western subscription accounts being locked in for 12 months? That would make SWTOR automatically profitable for an entire year.
3. Mists of Pandaria information out on March 19.
Some of you may have seen recent news about the upcoming World of Warcraft expansion, Mists of Pandaria. Last week, we began inviting global press to visit our office to get a hands-on look at the game. The press visit will take place next month, and our players will be able to read the latest news on the game on March 19. We’re looking forward to showcasing the game to our community and collecting more feedback as we prepare for the upcoming beta for Mists of Pandaria.
By the way, that means there is an automatic 1 million beta-testers for Mists, yeah?
4. Chuck Norris was super effective!
Neil A. Doshi – Citigroup Inc, Research Division
Mike, I was wondering if you could provide us a little more detail around the subs for World of Warcraft. What was the impact from some of your marketing efforts? And then how many subs did you add from Brazil? And if you have any comments on trend that you could share with us, that would be great.
Michael Morhaime
Okay. So we were very pleased with the results of the marketing initiatives in Q4. The Chuck Norris spot was very effective. We’ve got over 29 million views of the spot on YouTube. And I think, just looking at how well the subscribership held up during our most competitive quarter ever, we’re very happy with that. Engagement of the player base is very strong. We do not break down regional. We do not provide regional breakdown of subs, but we’re off to a good start in Brazil. And I don’t have any detail on churn.
Nothing to add to that.
As reported everywhere, WoW did implicitly lose another 100,000 subs in the quarter. There have been a lot of “See? Not dying!” posts over in the MMO-Champ and WoW Insider comments, but it’s worth pointing out that A) if someone unsubbed for SWTOR, then they won’t count as “missing” until January, e.g. Q1, and B) WoW launched in Brazil this quarter, as noted above. There are several more high-profile MMO launches coming this year, and let’s not forget that everyone is stuck with Dragon Soul until Mists actually launches… which could be six months from now, or more.
In any event, sub numbers really only matter to me in the context of having objective data by which we can interpret future design philosophy, and MMO player desires by extension. If Blizzard’s reaction to losing 1.8 million subs is to make the game easier, then we can assume that they believe a hard game is why people left.
It’s crude, it’s imperfect, but it is all we really have as armchair game designers.
Posted in Commentary, WoW
9 Comments
Tags: Activision, Blizzard, Bungie, Earnings Call, Mists of Pandaria, Morhaime, Subscription, Titan