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NY Times discusses the MMORPG market (link ) :
...Retail sales of massively multiplayer games grew significantly in 2003 and 2004, according to the NPD Group, which tracks video game sales. And while the most popular multiplayer game released in the United States, the fantasy-oriented World of Warcraft from Blizzard Entertainment, has 1.5 million subscribers, that has proved to be an outlier. The industry usually regards 100,000 subscribers as the point at which a title breaks even. Not many games have hit that point and maintained it.
"This can be a profitable business - it just isn't usually," said Robert Garriot, chief executive of NCSoft North America, which publishes City of Heroes and is developing other titles. "There are a handful of people making money. Instead of being in the Top 10 you have to be in the Top 5."
And the cost of attracting subscribers is growing. The more elaborate massively multiplayer games can cost more than $20 million to develop, according to several executives in the business. That is about double what it costs to make a game for a console like Xbox. It took four years to develop World of Warcraft, according to Paul Sams, chief operating officer of Blizzard Entertainment, a division of Vivendi Universal Games. "It's substantially more expensive, substantially more risky and substantially more rewarding..."
...The other major massively multiplayer game based on a film franchise, Star Wars Galaxies, did not prove to be the breakthrough some had hoped. It has around 250,000 subscribers and is profitable, according to Sony Online Entertainment, but was criticized because it lacked the characters from the movie.
"There was certainly a lot of disappointment in Star Wars Galaxies that the characters weren't in the game," said Ross Rubin, director of industry analysis at the NPD Group...
...Participating in massively multiplayer games often requires a substantial investment of time: EverQuest users play for an average of about 20 hours a week. "It requires - my word - a 'special' kind of person," said Michael Pachter, a gaming analyst at Wedbush Morgan. "I think because people like video games, which is a casual experience, they may have misjudged the size of the market."