PROPOSAL FOR SUBMISSION

Research topic

The topic we’ve selected is about online games business. The business in online games has broad definition and contains of wide-ranging services not just solely the services provided by the company to the customers, it also includes the business between players and between players with third-party business.

There are different kinds of online games categories as I mentioned in the first post, thus there have different pattern of business emerged. In our topic we are going to narrow down the scope to one category, which is about Massive Multiplayer Online Role-Playing Game (MMORPG).

Rationale of topic choice

Why we have selected this topic? It is because this kind of ‘off topic’ will not be taught in lectures/classes as a subject-matter, and yet the business in online games is not simply you can find in search engine (Google). Only if you’ve ever played MMORPG, then you would know what and how the business in MMORPG is about. As I’ve been a hardcore gamers since long time ago, I can share my experience of how the evolution and changes of business in online games (especially MMORPG) from past to present. So, it is pleased to provide me this opportunity to share the knowledge with others.

How we obtain information for the paper

As from my little survey in the blog there it shown that 50% voters ever play MMORPG and the other 50% are not. So, meaning to say, much of the students in this class are still not familiar with MMORPG/online games. Therefore, we try to simplify the illustration about the business of online games. How we plan to obtain information for the paper? I think mostly information in our research will based on our own experience in online games since we had been hardcore gamers before. And we would also try to find the related articles or journals regarding online games business to emphasize in our own understandings.

Research Objectives of Our Research Assignment

The scope of our research assignment would be narrow down into four parts:

1.       Identify various type of business in online games. The areas covered will be online game company and third-party company/business involves in the particular online game.

2.       Penetrate into strategies of how online games business (MMORPG) implemented. The areas covered will be online game company (MMORPG) and third-party company/business involves in the particular online game.

3.       Challenges of online gaming business (MMORPG) currently facing and how they overcome it. The areas covered will be the bot issue, scam issue, and hack issue.

4.       Factors affecting of why people play/spend times in online games (MMORPG). The areas covered will be studying the human factors and the attractiveness of online games.

Report Outline

1.0   Introduction

1.1   Rationale of topic choice

1.2   How we obtain information

2.0   Types of Business in Online Games

2.1   Brief introduction of different MMOs

2.1.1          MMORPG

2.1.2          MMOFPS

2.1.3          MMORTS

2.1.4          MMOSG

2.1.5          MMOR

2.2   Brief introduction of third-party companies/businesses involves in online game

2.2.1          SeaGamers

2.2.2          Garena

2.2.3          Gold-Farmer

2.2.4          Individual/Part-time players

3.0   Factors affecting people to play online games (MMORPG)

3.1   Achievement

3.1.1          Advancement

3.1.2          Mechanics

3.1.3          Competition

3.2   Social

3.2.1          Socializing

3.2.2          Relationship

3.2.3          Teamwork

3.3   Immersion

3.3.1          Discovery

3.3.2          Role-Play

3.3.3          Customization

3.3.4          Escapism

4.0   Strategies implemented in Online Games Business (MMORPG)

4.1   Online Game Company (MMORPG)

4.1.1          Competition

4.1.1.1    Genre

4.1.1.2    Content

4.1.1.3    Graphics

4.1.1.4    Familiarity

4.1.1.5    Updates

4.1.1.6    Game Length

4.1.1.7    Social Structure

4.1.1.8    Innovation

4.2   Third-party company/business involves in online game

4.2.1          How to approach in-game players

4.2.2          How they meet customers/players needs

5.0   Challenges and Ways to overcome (MMORPG)

5.1   Bot Issue

5.2   Scam Issue

5.3   Hack Issue

6.0   Conclusion

7.0   References

8.0   Appendix 

Literature Review

Online games can be differentiated into several types, such as MMORPG, MMOFPS, MMORTS, MMOSG and MMOR. In our research, we are trying to narrow downthe scope to MMORPG, and the businesses involving in it.

MMORPG stands for massively multiplayer online role playing game, a type of MMOG (massively multiplayer online game). An MMORPG is a computer-based RPG (role playing game) which takes place in an online virtual world with hundreds or thousands of other players. In an MMORPG, a player uses a client to connect to a server, usually run by the publisher of the game, which hosts the virtual world and memorizes information about the player. (Anissimov)

In an MMORPG, like any RPG, the user controls a character represented by an avatar, which he directs to fight monster for experience, interact with other characters, acquire items, and so on. MMORPGs have become extremely popular since the wider debut of broadband internet connections, now with millions of subscribers from hundreds of different countries. Some MMORPGs have as many as a million subscribers. (Anissimov)

Mainly, publishers of the MMORPG are generating incomes from players through monthly subscription or through in-game cash items. Other than the publisher itself, third parties also have the opportunities to generate income from the online games, such as ‘SeaGamers’, who generates income by selling in-game gold and provide power-leveling service in exchange of real money; ‘Gold farmer’, who farm in-game gold and sell to other players for real money; and individual players who sells their accounts or trade in-game items to other players for real money.

There are several factors affecting people to invest or play MMORPG. According to Nick Yee (2007), the motivation of plays in MMORPG can be divided into 3 components, which are (1) achievement (2) social and (3) immersion and each of the components have their subcomponents, such as advancement, mechanics, competition, socializing, relationship, teamwork, discovery, role-playing, customization, and escapism.

As the market of MMORPG is rapidly growing, publisher of the games has to promote themselves in order to stand out of crowd among other MMORPG companies. Strategies implemented such as the changes in way of making businesses, like, eliminating monthly subscription, so as to attract more customers to register. In other words, it transferred from ‘pay to play’ model to ‘free to play’ model, whereby to generate income from selling in-game cash item instead of monthly subscription.

Moreover, advertising play a big role nowadays, in the past, mostly online game companies promote their game through game magazine or banner in cybercafé, but, today we can see that some online game companies are advertising their game through TV ads, and social network such as facebook to promote, acquire, interact/maintain relationship with their customers.

Publishers of online games are currently facing threats from those so-called ‘third party companies’, as these third party companies will approach in-game players to sell unfair benefits such as in-game gold/currency, power-leveling, bot etc. which will seriously affect the balance, fairness and motivation of other players.

Lastly, this research paper will provide a brief but broad explanation of various types of businesses that can be done in online game industry (especially MMORPG). 

Major References:

De Paoli, S. & Kerr, A. 2009, ‘The Cheating Assemblage in MMORPGs: Toward a sociotechnical description of cheating’, Authors & Digital Games Research Association (DiGRA), viewed 21^thOct 2010.

http://www.digra.org/dl/db/09287.23190.pdf

This article provides an insight about the cheating assemblage in MMORPGs, and more towards conceptual explanation. The conceptual explanation is whereby the illustration of sociotechnical nature of cheating in MMORPGs showing how cheating is composed both of highly sophisticated technologies elements and complex social elements. We will use this article as a guideline when we writing about the challenges of MMORPGs currently facing, because in that section, what we’ve knew about the challenges is solely based on our own in-game experience, therefore we need this article to guide us in explaining the issues (bot, hack, scam) in a correct way.

‘Underworld MMORPG Massive Multiplayer Online Role Playing Game 2005’, Neopangaia, viewed 21^th Oct 2010.

http://underworld.wecometoplay.com/bizplan.pdf

This article is a business plan of a MMORPG company. In this article it shows that how actually a MMORPG company plan before launching their game. The plan contents such as keys to success, competition and buying patterns and etc. So, we will use this article to help us in explaining the strategies of how a company should take in order to compete among other competitors.

Yee, N. 2006, ‘Motivations of Play in MMORPGs: Results from a factor Analytic Approach’, Nick Yee, viewed 21^th Oct 2010.

http://www.nickyee.com/daedalus/archives/pdf/3-2.pdf

This article primarily analyse why peoples play MMORPG. In this research article the author classified the motivations into three major components, which are achievement, social, and immersion. We will use this article to help us in completing one of our research objectives that is to find out why people play/spend times in MMORPG.

Other References:

Anissimov, M. 2010, ‘What is a MMORPG’, wiseGEEK, conjecture corporation, viewed 22^thOct 2010.

http://www.wisegeek.com/what-is-a-mmorpg.htm

‘Benefits and Drawbacks of Less or More Time Playing MMOs during an Economic Depression’, Online Massive Multiplayer.com, viewed 17^th September 2010.

http://www.onlinemassivelymultiplayer.com/rants/benefits-and-drawbacks-of-less-or-more-time-playing-mmos-during-an-economic-depression/

Buy MapleSEAMesos | Sea Gamer Mall, 2007-2010 SEAGM.com, viewed 11^thSeptember 2010.

http://www.seagm.com/gold/buy?game_id=8

‘China jails 11 over online games scam: state media 2009’, France 24, viewed 24^th September 2010.

http://www.france24.com/en/node/4950332

Drain, B. 2010, ‘EVE Online player steals $45,000 worth of ISK in massive investment scam’, Massively, viewed 24^th September 2010.

http://www.massively.com/2010/09/11/eve-online-player-steals-45-000-worth-of-isk-in-massive-investm/

Garena, Connecting World Gamers, Garena Online, viewed 10^thSeptember 2010.

www.garena.com

Laurence H. M. Holland and David M. Ewalt, 2006, ‘Making Real Money In Virtual Worlds’, Forbes.com, viewed 21^th Oct 2010.

http://www.forbes.com/2006/08/07/virtual-world-jobs_cx_de_0807virtualjobs.html

SEA Gamer Mall | Your One Stop Gaming Services Platform,2007-2010 SEAGM.com, viewed 11^thSeptember 2010.

http://www.seagm.com/

Young, K. 2006, ‘Addiction to MMORPGs: Symptoms and Treatment’, viewed 21^thOct 2010.

http://www.netaddiction.com/articles/addiction_to_mmorpgs.pdf