Online Game, Made in U.S., Seizes the Globe

Tuesday, September 5th, 2006

From Online Game, Made in U.S., Seizes the Globe:

Less than two years after its introduction, World of Warcraft, made by Blizzard Entertainment, based in Irvine, Calif., is on pace to generate more than $1 billion in revenue this year with almost seven million paying subscribers, who can log into the game and interact with other players. That makes it one of the most lucrative entertainment media properties of any kind. Almost every other subscription online game, including EverQuest II and Star Wars: Galaxies, measures its customers in hundreds of thousands or even just tens of thousands.

And while games stamped “Made in the U.S.A.” have often struggled abroad, especially in Asia, World of Warcraft has become the first truly global video-game hit since Pac-Man in the early 1980’s.

Making money off software in Asia has its own challenges:

One of the main reasons Western software companies of all kinds have had difficulty in Asia is that piracy is still rampant across the region. Games like World of Warcraft circumvent that problem by giving the software away free and then charging for the game service, either hourly or monthly.

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