The name of the game is niche.
While the mass hype machine is focused on Twitter, Facebook, and YouTube — platforms with non-existent or weak business models — World of Warcraft generates over $1 billion-per-year via a healthy mix of 11-million-plus monthly subscribers and a multitude of licensing deals ranging from trading cards to physical games. Blizzard Entertainment‘s WoW, like many Massively Multiplayer Online Role-Playing Games (MMORPG), is more than just a “game” — it is, as WoW’s tagline says, “a world.” A world of team-building communities, social networks, virtual goods ecosystems, lifestyles, and, of course, gaming.
Why has WoW succeeded as a viable business but the above mentioned platforms have not or are struggling to deliver on the hype? In short because Blizzard discovered a niche, mined it for over fifteen years, stayed true to their initial focus, and have not shown an interest in reaching for a mainstream mass that will never truly appreciate or understand the draw of fantasy and community-based gaming. It also hasn’t hurt that they created a product that people have been willing to pay for since 1994. This willing pool of paying consumers continues to grow and is truly impressive in an age of people increasingly not wanting to pay for online content.
WoW may not be sexy. And it’s definitely not new. But it is worthwhile to step back from the abundance of attention on certain new platforms for a second to appreciate an online niche business that continues to do it right.
What’s your game?
