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Chapter I- Introduction

1.5 Flow of Research

This research progresses following the steps shown in (Figure 1-3). The first step of the research is to gain a deeper understanding regarding the F2P MMORPG to develop research problem and scope. Then, through related literature reviews, develop research framework and hypotheses for the study. After collection of data and analysis to get the test results, the study will end with research conclusion and suggestions. Hence the flow of research as shown as follows (Figure 1-3):

Develop Research Problem & Scope

Literature Review

Create Research Framework

Figure 1-3 Research Flow Chart Formulate Research Design

Data Gathering & Analysis

Research Results

Conclusion & Suggestions

Chapter II Literature Review

2.1 The Origin and Development of MMORPG

MUD (Multi-User Dungeon Dimension) can be said to be the ancestor of the modern MMORPG. MUD is first developed in 1979, England, by two students in University of Essex, Roy Trubshow and Richard Bartle, as an adventure game. The interface of this adventure game is based heavily on words, can allow multiple users to connect and play, gives them the ability to role-play, and the game character can walk within a given environment. In this virtual environment, players kill monsters to gain experience points to gain more power during play (Yang, 2007).

Through time, games with word descriptions and basic Figureics such as MOO (MUD Object Oriented), MUSE (Multiple User Simulated Environment), MUSH (Multi-User Shared Hallucination) emerged with enhanced interfaces (Kim et al., 2002).

Therefore, it can be said that the definition of MUD is: A virtual environment that allows people in different time zone and different areas to join together as role-play characters.

It was not until 1997 that MMORPG start to gain popularity. A game created by Electronic Arts (EA), Ultima Online, began the whole MMORPG market (Zhang, 2006).

In year 2000, NcSoft, a Korean game company, developed one of the most popular MMORPG of all time- Lineage. Today, games like World of Warcraft, Ragnark Online, Final Fantasy XI are among the top MMORPG in recent years ranked by worldwide players.

2.2 Definition of MMORPG

2.2.1 Traditional MMORPG

How can one really define MMORPG? A Wikipedia definition describes it as a

“genre of computer role-playing games in which a large number of players interact with

one another in a virtual world” (Wikepedia.org, 2008). Players take on a role of a fictional character and have the ability to control over many of that character’s actions (Yoon, 2005; Lee, 2007). In later generations of MMORPG, players can actually have social actions such as hand shakes, nod, sit, waving, kiss, dance… etc. which adds to the social interaction sphere of the MMORPG. A major difference between a MMORPG from single-player games is the existence of the game’s persistent world, meaning that the virtual world will continue to exist and evolve even if one or a few or all player are away from the game.

A MMORPG can by played by connecting to the internet, and can allow thousands and even tens of thousand players around the world to play together. People can create their own characters (deciding on the name, gender, skin color, hair style, clothing, ability, and class); make friends and interact with them in the virtual environment in real time; fight monsters for experience and money; use money gained to purchase equipments and items for their characters either from virtual shops or exchange with other players (barter system); and can participate in in-game events (Hsu

& Lu, 2004). Therefore, compared to the traditional MUD games, a MMORPG has a lot more playability and entertainment values to the players.

2.2.2 Free-to-Play (F2P) MMORPG

According to Jessie (2008) on her revenue model innovations in the online game market, she separates the traditional MMORPG (which she calls it the time-based revenue model or P2P (pay-to-play) model) from the next generation free-to-play MMORPG (the item-based revenue model) (Jessie, 2008; Lai, 2005). Whereas the time-based model generates revenue by gamers paying subscription fees or by purchasing pre-paid cards (point cards) to continue playing, the item-based model offers free-to-play for all gamers but generates revenue from sales of virtual items to the gamers. Therefore, even though the free-to-play MMORPGs are free for all players, for the players who want more (for instance, better equipments for their characters or items for easier levelling), those players will have to use real money to pay for the virtual items (Guo & Barnes, 2007).

This free-to-play MMORPG, or the item-based revenue model, emerged in 2004 in Korea, and later became popular because of its revenue generating potentials (Oh &

Ryu, 2007; Shapiro & Hal, 1999). According to IDC China’s 2007 figures, more than 80% of online games are now adopting this model. As of now, approximately 13% of the players play P2P games, but as many as 87% of players are playing free-to-play (IDC China, 2007). Shi Yu Zhu, CEO of Giant, stated that the whole industry market revenue increased by 70% annually during the past three years due mainly to the transformation from P2P to the item-based revenue model (Jessie, Q.R., 2008). Here is a view of the IDC 2005 Greater China Online Gaming 2006-2011 revenue forecast figure (Figure 2-1):

Figure 2-1 2006-2011 Chinese Online Game Revenues Forecast Source: IDC China (2005)

2.3 Attractiveness of Game Design Elements

Through previous literatures about the online gaming industry, specifically, the free-to-play MMORPGs, even when the game is free for the gamers to play, in order to retain the players to continue playing the game, the game development companies have to find ways to design their games to attract those gamers (Wu et al., 2008). If the companies are capable of retaining the old players and attracting the new players, then they can continue ripping profits from the advertising companies and through virtual item purchases with real money by the gamers. In today’s society, and the upward rising

trend of free-to-play MMORPGs, a well-designed game in the field translates to maintaining competitive advantage in the already competitive environment (Zeschuk &

Muzyka, 2004). Therefore, designing an attractive free-to-play MMORPG becomes an important topic to examine, and is also the focus of this study. In this section, literatures related to the issue of game design will be discussed and examined:

2.3.1 Definition of Game Design

Chen, Jia-Ping (1994) suggests that game software design includes story/plot design, effect design (background design, sound/music design, and animation design) and overall flow design. Most multimedia game software development follows the processes shown below:

1. Color template: color template is the basics of diagrams and image storages.

2. Diagram & Image: diagram includes style, background, character, setting, etc.

3. Music & Sound.

4. Plot: plot is the soul of a game software. A good plot has climaxes, attractive plot connections, and animation effects to produce a good game software.

5. Method of overcoming difficulty: in the story, the protagonist often has to beat the challenges the designer designs in the game. And the method of overcoming these challenges is separated into active and passive methods. Active method is the type in which, for instance, players have to fight and kill monsters under some battle system. And passive method is the type in which players solve puzzles and progress through the game.

6. User Interface: user interface is the interface between the user and the software.

The tools of such interface include: keyboard, mouse, joystick, etc. The communication within the interface include diagrams, function tables, hotkeys, etc. No matter which type of interface the player uses, the ones that are most easy to control and handle and can help progress through the game most easily will be the better interface design.

Zhang, Wu-Cheng (2002), in his extensive study on his thesis in the field of online game design, identifies 7 main attractiveness of game design elements as his game design model:

1. Story Design: the game’s editing plan, overall framework, and the development of events; for instance, story content, character traits, effect design, and game progression.

2. Art Design: artistic style, background setup, character, and item setup.

3. Music & Sound: how well the music and song go along with each other and their role as an important way to express the game atmospheres.

4. Animation Design: the positioning, location, timing, and expression methods.

5. Entertainment Design: the feelings the game progression brings to the users.

6. Game Rules: the set of rules the game progresses.

7. User Interface Design: A good interface makes the game easy to handle and control and can make the gamers more easily connect with the game.

(1). Story

Interesting stories and plots can motivate players to explore the game, and return to the game to play through the story (Pearce, 2003). Character development can also trigger curiosity in players and immerse themselves into the story. Building in-game characters makes players feel like they can determine their fate in a virtual environment in ways they might not be capable of doing in reality (Ryan, 2001). It has been shown that when the story has a clear background and world view, is interesting in plot with side stories, is continuously expandable, and original, gamers will show higher interest in the game and will be more willing to continue playing the game (Tsai, 2006).

(2). Visual Presentation

The visuals of the game, including pictures, images, modeling can be a major factor in attracting players to try out the game. The definition of Figureics, or the polygon rendering, can create realistic virtual game worlds and also create nuanced characters with more precise action details (Smith, 2002). The visual presentation of a game can act as a signifier to the richness of the cinematic scenes in the game. People enjoy playing a game when facial features, actions, and expressions of an avatar are carefully designed with great detail (Pearce, 2002). The visuals do not only include avatar or character designs, but also includes background designs, equipment designs (weapons and armors), item designs, and monster designs. When the visual designs and the art style of these aspects of visuals are consistent and appealing, players have been shown to have a higher interest in the game (Tsai, 2004).

(3). Sound & Music

It is not only the visuals, but auditory cues can convey a sense of time of space of a fictional world (Ward, 2002). Sound and music can expend the concept of a game’s virtual world, and have been shown to drawn players forward through the sequence of game play (Whalen, 2004). And when visual objects are combined with sounds, it can increase perceived real and alive experience (Cohen, 2000). In other world, sound and music can help create a sense of real physical space which has been proven to have a positive relationship with player satisfactions (Whalen, 2004).

(4). Character Setting

The character setting part of design is the one of the basis of making a RPG, and this is especially true in a MMORPG, including free-to-play MMORGPs. Since there are so many players each player will meet and have contact with one another, it is important for the game developers to design the characters in a way that each race or job classes are distinguishable yet balanced with other races/job classes or else players will shy away from the game due to inequalities (Tsai, 2006). Thus, making discrete, yet balanced job classes/races is very important in designing a game where many people are playing in the same game environment. The skills and magics and equipments each job classes and races can use add in to this character setting equation (Eskelinen, 2001).

All in all, many studies on games have come to similar conclusions that when the design of character setting are balanced that no one setting is superior to another, and different setting have its own discrete elements can greatly enhance gamers’ playing experience and satisfaction towards playing the game (Cohen, 2000).

(5). Control

Game controls are the mechanisms that allow players to manage and direct online game progression by keyboard or mouse (Juul, 2001). Control can be thought of as the interface between players (reality) and online games (virtual). Therefore, when players engage in battles or simply explore through the virtual world, being able to control the character easily becomes extremely important. In reality, the sense of control is one of the most important aspects of design players look for when playing a game. A low sense of control can create frustration, while a high sense of control can increase attractiveness of the game (Eskelinen, 2001).

(6). Interaction

The interaction level of a game addresses the issue of the capability for gamers to be able to interact with other players. Since people playing an MMORPG are in fact playing a game with “massively multiplayer”, the contacts between the players, or the interaction between them become extremely important when game developers design their games. In every MMORPG, players can communicate with one another, make in-game transactions with in-in-game currency with one another, and team up or build parties with one another, in a way building a virtual community (Pearce, 2002). Evidence have found players to enjoy the game more, and can stay in a game longer, when the interaction mechanism of the game is excellent- meaning easy communications, transactions, and teaming up with one another (Juul, 2001).

2.3.2 Measuring Game Design

Mulligan J. & Patrovsky B. (2003), in their book “Gurus talk on Online Games”

suggest that before and after a new MMORPG project has been decided to run, the game design team need to concentrate on various design elements in a design proposal.

Since programming language related topics are out of the scope of this research, only attractiveness of game design elements related topics will be mentioned here:

When a game design team accepted a new MMORPG design project but before the project is in progress, these are the aspects the two scholars suggest the design teams should focus on: 1). Genre, 2). Polygonal presentation, 3). Style of interface, 4).

Target group, 5). Customer platform, 6). Original design or Contract game 7). Method of gaming, and 8). Innovative player experience.

And after the team have had a thorough thought on the game design aspects mentioned above, and after the project is in progress, the team will have to turn their heads and focus on these game design aspect: 1). Story plot, 2). Player interface design, 3). Character race and class, 4). Character creation and growth, 5). World positioning and environment, 6). Game rules, 7). Polygonal design guide, 8). Item and tools list, 9). NPC type list, and 10). Monster type list.

Shen-Ling, Xu (2004), on his thesis paper, researches MMORPG design attractiveness based on Mulligan & Patrovsky’s (2003) model, and simplified it into the following constructs for his model of MMORPG design influence customer satisfaction:

Character Setting

Interaction

Visual Presentation Story

Control Game

Music Game Design

Attractiveness Model

Figure 2-2 Xu’s Game Design Attractiveness Model

Xu’s game design attractiveness model, derived from Mulligan & Patrovsky’s model, examines the attractiveness of the defined elements of game design for a MMORPG and uses them to test gamers’ satisfaction towards the game. This study decides to refer to Xu’s research framework model to measure online game, specifically, the F2P MMORPG attractiveness of game design elements’ attractiveness, and based on online game characteristics to develop measurement constructs for the study.

There are many researches conducted on the matter of online gaming, and most of them have similar variables such as story, music, and visuals. However, what makes Xu’s model distinct from other scholars’ proposed models is due to his emphasis on a attractiveness of game design element- interaction, which differs from many of the scholars studying online gaming. Online gaming consists of many branches, and most of them are single player games, so the study of interaction is relatively unimportant, and thus is taken out of the picture when scholars conduct their experiments. However,

since interaction is been proven to be an important part, if not the most important, of the game genre of MMORPGs, the inclusion of this variable is critical to examine the effects of the new branch of the MMORPG, which is the focus of our study- the F2P MMORPGs.

The above reasoning is the primary reason for this study to borrow Xu’s model to progress with the later testing.

2.4 Customer Satisfaction

The 21st century is a society which contains high degrees of service activities.

Product and service qualities determine whether a consumer will be satisfied with the purchase, and this is a key factor in determining a successful or a failing business.

Therefore, customer satisfaction level is a widely used indictor for firms in the operation of their businesses.

When a consumer experiences the quality a product or service, either complaint or satisfactory emotion is formed, and this becomes a new experience. As a result, the customer will decide to repurchase, in this case, replay the game, or shift to another product or game.

It is thought by Engel, Blackwell and Miniard (1986) that the importance of customer satisfaction lies in 2 main events it might lead to:

1). Repurchase intention: the consumer having tried the product have higher than expected satisfaction towards the purchase. This positive feeling towards the product or service will likely create a repurchase intention.

2). Brand image creation: after a satisfactory usage of the product or service by a consumer, a reputation will be formed. This will be a very good channel to attract new customers because word-of-mouth advertising is thought to be the most effective form of advertising.

2.4.1 Definition of Customer Satisfaction

Customer satisfaction can be defined as the evaluation of conformity between the perceived and the actual value experienced by the consumer after using a product or service (Engel, Blackwell and Miniard, 1986). If the perceived value is higher than the actual value, the consumer is unsatisfied. On the contrary, if the perceived value conforms to the actual value, then the consumer is satisfied (Hausknecht, 1990).

Various scholars have different opinions on how to properly define customer satisfaction. Some of the most widely used definitions have been gathered and organized for use in this research, as shown below in Table 2-1:

Table 2-1 Definitions of Customer Satisfaction

Scholar (Year) Definition

The after-purchase evaluation on the user’s experience of using the product or service.

Comparison between the before and after usage of a certain product or service.

The satisfaction level is conceptualized as the evaluation on the influence of the product on the user.

Determining the opposing “Satisfy/Unsatisfied”, and also taken into account the value received by the user.

The customer’s expected value is on par or is surpassed from the usage of the product.

The difference on the expected and actual performance of the product as observed by the consumer.

The response of a consumer after receiving the value of the product.

Summing up the above definitions of customer satisfaction, this research will define it as the evaluation of the experience playing a free-to-play MMORPG and

whether the game offers enough creative features that meet or go beyond players’

expectations. If the features in the game are the ones the players want, then this will generate a positive emotion from the players toward the game. If the players’ demands are not met, then they will likely feel unsatisfied and will stop playing and move on to try other free-to-play MMORPG made by other gaming companies.

2.4.2 Theories on Customer Satisfaction

1). Expectancy - Uncertainty Theory

Oliver (1993) suggests that customers will have a pre-purchase expected value

Oliver (1993) suggests that customers will have a pre-purchase expected value