Why do MMOs continue to be made? From everything I've seen (they require a massive constant influx of players to remain profitable, the graphics quickly become outdated, most MMOs, barring a few exceptions, shut down relatively quickly after launch) they don't seem like a smart idea. I feel like only people who can afford to make them nowadays are huge companies who can sink millions into a game that remains unprofitable for years. Is it just because of the romanticism of it all?
The reason that MMOGs continue to be made is because MMOGs are often actually quite profitable once they establish themselves. There is no real "romanticism" in building MMOGs - they are, by far, too expensive to build for the sake of being a pet project. MMOGs are a good vehicle for maintaining engagement. The social aspect of playing with many of the same friends over weeks and months provides a powerful incentive for players to continue to engage with the game. As I've said before, engagement is the most valuable metric that any game can have because it directly correlates to game revenue more than any other metric we have.
Let's examine your premises and see which ones don't hold up.
They require a massive constant influx of players to remain profitable
While this is true, there are adjustments that can be made as time passes. Profitability is a factor of both cost and revenue. As the player base naturally dwindles over time, so does the size of the team and the scope of planned future content. Thus, the cost of maintaining the game continues to scale downward with the decline of the player base, maintaining profitability. Eventually any MMOG will be placed in “maintenance mode” where no new content will be developed, but even then it can remain profitable for years as long as enough players are still willing to pay for the ongoing maintenance costs (as is the case with Ultima Online, which is approaching its 25th anniversary this year).
The graphics quickly become outdated
Cutting-edge graphics are only a selling point at launch. Many MMOGs today (WOW, LOTRO, FF14, SWTOR) are still going strong many years later despite not being the prettiest belles at the ball. Once the game gets its hooks into the player, they want to keep playing even if it isn't the prettiest game.
Most MMOs, barring a few exceptions, shut down relatively quickly after launch
The first year is where the majority of MMOGs die, primarily because they cannot grab onto a critical mass of players. The first year is also where the majority of games in general die for the exact same reason. However, if the game manages to survive its first year, the chances of a long lifespan are actually pretty good. For example, Defiance was a MMOG that was licensed and based on a Sci Fi channel cable television show that lasted for two seasons. The game launched in 2013 and didn't shut down until 2021, six years after the show had gone off the air. There are hundreds of smaller F2P MMOGs still running today because they managed to secure that critical mass of players.
I think most people don't realize that MMOGs are still a thriving genre, but have also evolved with the times. Most of them don't try the AAA big budget approach because such vehicles are somewhat obsolete. The only big AAA MMOG in the past several years I can think of was Amazon's New World Online, which had (and continues to have) its own share of problems. AAA MMOGs have evolved into more streamlined versions (a la Destiny, the Division, etc.), losing expensive systems like item trading, player housing, and so on, while retaining the social systems and retention/engagement elements. Smaller MMOGs have reduced scope and visual fidelity, instead focusing on content creation tools to save on development and maintenance costs. These gradual changes over time have changed the way MMOGs are built and maintained today. Making new MMOGs is by no means untenable.
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