MMORPG 'hole in pocket syndrome' strikes again
Artifact Entertainment files for bankruptcy.
The last few months have been a tumultuous time for MMORPG developers. Amongst others, SEGA had to drop Warhammer Online, Microsoft Game Studios in Japan binned True Fantasy Online and numerous industry players have emphasised the risks of MMORPG development and the uncontrollable, spiralling expenditure that can become necessary in successfully completing such ambitious projects.
However, Artifact Entertainment, which had opted to deliver its own MMORPG, Horizons: Empire Of Istaria, via a subscription-based online download service, as well as through publishers Atari, has also run into financial difficulties, albeit for slightly different reasons. According to an official notice on its website, “due to an inability to reach a mutually satisfactory agreement with a key vendor”, the development team has had to voluntarily file for bankruptcy in order to address its troublesome debts. Given that the game is directly downloadable from the Artifact website, the finger of blame seems to be pointing firmly at Atari, although neither party has actually articulated this possibility.
Thankfully, for the tens of thousands of regular Horizons players, their experience will not be affected. Subscriptions are still being accepted, and in terms of actually playing the game, it is still business as usual. Artifact is also in discussion with a “seriously interested company” which may or may not buy out the company’s assets and permit continued Artifact development in the future.
This recent tale of financial woe may have important repercussions for other games and projects akin to Horizons. If some of the world’s biggest games companies cannot afford to complete work on standard retail MMORPG products, and if smaller companies like Artifact can’t siphon off sufficient profits through downloadable, subscription-based systems (which is arguably the cheapest way to distribute any game), then the choice and range of such titles may be severely limited in the future.
Fans of online role-playing better keep their fingers crossed, and hope that the likes of World Of Warcraft and Everquest 2 prove that MMORPG development is a profitable activity, rather than just a huge financial drain.
However, Artifact Entertainment, which had opted to deliver its own MMORPG, Horizons: Empire Of Istaria, via a subscription-based online download service, as well as through publishers Atari, has also run into financial difficulties, albeit for slightly different reasons. According to an official notice on its website, “due to an inability to reach a mutually satisfactory agreement with a key vendor”, the development team has had to voluntarily file for bankruptcy in order to address its troublesome debts. Given that the game is directly downloadable from the Artifact website, the finger of blame seems to be pointing firmly at Atari, although neither party has actually articulated this possibility.
Thankfully, for the tens of thousands of regular Horizons players, their experience will not be affected. Subscriptions are still being accepted, and in terms of actually playing the game, it is still business as usual. Artifact is also in discussion with a “seriously interested company” which may or may not buy out the company’s assets and permit continued Artifact development in the future.
This recent tale of financial woe may have important repercussions for other games and projects akin to Horizons. If some of the world’s biggest games companies cannot afford to complete work on standard retail MMORPG products, and if smaller companies like Artifact can’t siphon off sufficient profits through downloadable, subscription-based systems (which is arguably the cheapest way to distribute any game), then the choice and range of such titles may be severely limited in the future.
Fans of online role-playing better keep their fingers crossed, and hope that the likes of World Of Warcraft and Everquest 2 prove that MMORPG development is a profitable activity, rather than just a huge financial drain.
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Comments
Joji 29 Jul 2004 13:01
1/4
Curse of Atari strikes again. Due to online games needing to diversify anyway, this isn't such a bad thing, but the folk loosing their jobs won't think so.
Online games need to be shorter so they are not so costly. But I feel perhaps Xbox is doing the best in this department so far. Maybe PSP and DS can also help things a little more with their wi-fi abilities.
Online games need to be shorter so they are not so costly. But I feel perhaps Xbox is doing the best in this department so far. Maybe PSP and DS can also help things a little more with their wi-fi abilities.
bbam 29 Jul 2004 13:22
2/4
Joji wrote:
>Online games need to be shorter so they are not
>so costly.
I disagree you cannot make mmorpg's short its just not right they must have to be successful well bnallanced items and weapons,felowships aka groups ior what ever you wat to call them, as well as huge worlds. Now what developers should do is make the game downloadable with a small subscription fee say 5 pounds a month whilst the game is in early stages such as beta and where the whole worlds are not complete and such, this is the only way mmorpgs can exist.
>Online games need to be shorter so they are not
>so costly.
I disagree you cannot make mmorpg's short its just not right they must have to be successful well bnallanced items and weapons,felowships aka groups ior what ever you wat to call them, as well as huge worlds. Now what developers should do is make the game downloadable with a small subscription fee say 5 pounds a month whilst the game is in early stages such as beta and where the whole worlds are not complete and such, this is the only way mmorpgs can exist.
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gophur 29 Jul 2004 18:21
3/4
"According to an official notice on its website, “due to an inability to reach a mutually satisfactory agreement with a key vendor”, the development team has had to voluntarily file for bankruptcy in order to address its troublesome debts. Given that the game is directly downloadable from the Artifact website, the finger of blame seems to be pointing firmly at Atari, although neither party has actually articulated this possibility."
Given that they are pointing to a vendor I would hazzard that it likely a service provider for the servers and bandwidth. It is a common practice to over estimate as well as over pay for these types of services in the MMO business. Restructuring these long term deals can be a make or break proposition for an MMOG.
Given that they are pointing to a vendor I would hazzard that it likely a service provider for the servers and bandwidth. It is a common practice to over estimate as well as over pay for these types of services in the MMO business. Restructuring these long term deals can be a make or break proposition for an MMOG.
Pandaman 29 Jul 2004 23:33
4/4
And people wonder why Nintendo doesn't want to venture into online yet.