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Remove brain from fantasy land and come back to reality.
Making the game free without houses means players will create 20 accounts so they don't need a house. They just store the stuff on their free characters.
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I'd wager the number of people who even attempted to do this would be minimal. It'd just be way too much effort and hassle for most people; especially if bank storage was severely reduced for free accounts.
Case study: Runescape. They offer a F2P (Free To Play) and a P2P (Pay To Play) service. F2P accounts have many restrictions; they can only access a section of the map rather than the entire thing, etc. There are various restrictions on items too; F2P accounts cannot use or obtain certain items.
All in all, that system works. The game is a grindfest and gameplay, imo, just outright sucks. However, they have a significantly higher number of subscribers than UO, controlling roughly
6.9% share of the overall market.
The principle of the free accounts is that they give people easy access to the game without any commitment. Once they play, they make friends with people, get into the game and the idea behind the F2P model is to get free subscribers to turn into paying subscribers using the carrot on a stick method. In Runescape's case, I'd say this works. The offset of paying for the number of freeloaders to subscribers ratio is significant enough for the model to be viable financially.
Now, I'm playing devil's advocate slightly here because I personally wouldn't want to see a F2P system in UO. The other aspect of the equation is the
type of player that free play breeds. The RS community's average age has to be incredibly low teens and maybe even pre-teen. Walk around any town there and you'll see the type of behaviour and conversation that goes on and, frankly, any adult of average intelligence would realize they probably don't want to continue playing there too much longer. I'd certainly not want this to happen to UO; I personally think the requirement of a credit card for a start filters out a lot of people I'd rather not be interacting with in my spare time.
Your assumptions about the financial viability of the model are just incorrect though. RS is doing fine and has been expanding since inception.
Managementtoday.com reported that Jagex posted profits going from £2.7m (~$5.4m) to £10.2m (~$20.2m) in the 2005-2006 fiscal year.
I probably don't think UO has the mechanics present in its current state to produce significant allure to make people want to subscribe as readily as RS, however. That opinion is subjective though I guess; there's an argument for both sides of the fence on this issue and admittedly UO does have elements that people can get into which may create subscribers.
On another note, we could talk until the cows came home about this subject and people can make points and counter-points until they're blue in the face. Fact is, EA aren't going to be embracing F2P any time soon with UO. No member of the management/director team would be willing to roll the dice with this and it'd take a significant amount of time to code in provisions for restricted, free accounts which would certainly be a requirement of the system should it be seriously considered. It isn't happening, but maybe fun to discuss.
Take care.