How to make consumers addicted to your service..an example of multiplayer gaming

[via Emergic.org]

There are many reasons why MMOGs make enviable businesses:
1. Recurring Revenues. Anyone who has ever sold software covets thepredictability of recurring revenues, particularly subscription revenuesthat are basically "good until cancel." Most of the leading MMOG businessesemploy some form of subscription pricing.
2. Competitive Moats. Warren Buffet is fond of saying he likes businesseswith castle-like moats (i.e., ones with high barriers to entry). As usersinvest more and more time into a persistent character, into an avatar, intoaccomplishments, into online relationships, and into the resultingreputation, the higher the costs to switch to an alternate platform.
3. Network Effects / Increasing Returns. There is no better online barrierto entry than a strong community. Witness how Amazon and Yahoo both failedto distract eBay users even when offering a free product. For most MMOGs,the more users a particular game has, the more compelling the experience isfor incremental users. This self-reinforcing form of Metcalfe's Law isalive and well in many MMOGs.
4. Real Competition. In the future, traditional software-based games willmerely be practice vehicles for the much more interesting endeavor ofmultiplayer competition. MMOGs allow for a sense of competitiveaccomplishment and provide vehicles for the human ego to be rewarded, all ofwhich drives extremely obsessive behavior.
5. Time Engaged. According to the previously mentioned Forbes article, "agood PC-based game has a lifespan of 30 hours of play; a good multiplayergame gets 20 hours in just a week." This puts MMOGs, from the perspectiveof today's users, on par with television in terms of time engaged.
6. Unlimited Complexity. In a world where other players are part of theuser experience, the number of permutations of experiences is quiterealistically limitless. From the relatively simple rule-sets and economiespresent in most MMOGs, astonishingly complex emergent behaviors arise. Thisoffers a stark contrast to previous interactive entertainment where the gamecan eventually be "beaten" by the user.
7. High Risk, But High Reward. The number one criticism of MMOGs is thatthey are "hit" businesses like Hollywood businesses. A closer look willreveal that the average successful MMOG has had a useful life of over fiveyears. What's more, sequels are amazingly popular. As such, it is notunrealistic for a title to last ten years. That said, there are many, manyMMOG efforts that fail to reach the break-even number of subscribersnecessary to have a positive return on investment. As with the entirehistory of finance, risk and reward remain correlated.