“on the long run the shop will be the predominant source for income”
Poor people will get the same breakdown of the game as we, but at least there they are honest about it. Hope they also said that before release, not only a week after.This is a normal process. An expansion with costs would produce a straw fire . A sharp peak in income for on quarter and a sharp declension after that quarter. After a more or less short time the shop will become the main source of income again.
Define ‘normal’.
GW1 mainly used the expansions-sales so do most non-mmo games.
You are correct that if you use expansions as income you get a drop after the q where you sell the expansion and then your next peak will be when you sell the next expansion. That however does not have to be a problem. You simply get a steady income on a yearly base. That is fine.
In fact when we look at the sales of GW1 and compare it’s expansion-peaks to it’s initial sale it’s about 100%. GW2’s cash-shop sales start to drop and are now at a steady +- 21% every q. That means that after the second expansion GW2 would have started to earn more money with a pure expansion-based model then with the pure cash-shop model they use now.
And then I am not even talk about the fact that the compromises you need to make to the game for the cash-shop to work scares away people so that number might drop even lower and if they now would sell an expansion it would likely also sell less and less people playing a game also results in less opportunity to make money with merchandise. Lastly is does not benefit the game and so in also not a benefit for the long-term perspective of the game.
The cash-shop model however is a fairly easy, risk-low, proven, cash-grab approach. That is likely why it’s the way but it does not benefit the game or the customers and when done correctly it does even not benefit the company.
earning money is only half the equation for a business. how much a company earns in sales is meaningless if you don’t know how much they spend in generating those sales. I would guess that creating expansions costs significantly more than running a cash-shop
That is true, just holing up a cash-sop would be cheaper but apparently ArenaNet has a team of +300 people working. Not all developers obviously. But looking at the LS a lot of work went in there. If most of that would have gone into an expansions I think they could have released a pretty good expansion every year. The LS does not might seem much for many people if it comes to content but all the voice-acting, all the mini instances if you take all that work together I am pretty sure it would be enough man-hour to make an expansion. How many cash-shop items did we get in the first year? That could have all been new items to drop in the new expansions. So all in all I think they could have created an expansions with the same team / money and still have a small LS team to deliver an ongoing story, of course that would then be more like we did see the first few weeks of the LS.