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What is the cost of a F2P server?


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A few simple questions, really -

 

How much does it (on average) cost Jagex to operate a single F2P server for a month?

 

(few variables tossed in there - rent for server, cost of bandwidth, number of people logged in, number of dedicated salaried employees).

 

 

 

How much money does Jagex make from a single F2Per viewing an advertisement - which leads into-

 

On average, how much does Jagex make per month in advertising revenue from F2Pers?

 

 

 

This leads to the final question - what is the net profit / loss for Jagex simply having a F2P segment?

 

 

 

I know there have been a few graphics thrown around (i.e. a line graph and a couple pie chart), but this really doesn't tell me the answer to these questions.

 

Anyone care to fill me in?

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F2P gives Jagex 7% of its income before subtracting the costs of maintainence. Idk what the total income is, but it should be easy to figure out now.

 

 

 

EDIT: @ guy above me. 97%+7%=104%

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Right, but I'm looking for something along the lines of:

 

It costs Jagex 2,000£ / month for each F2P server. Jagex makes about 1900£ / month from F2P advertising, so Jagex's net loss per month for a F2P server is 100£

 

 

 

You get the idea. 7% doesn't tell me anything about the cost of a single server, nor does it tell me explicitly the amount of revenue Jagex gets from F2P advertising.

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JagexFinancialOverview2.gif

 

 

 

There you are. 2.2m pounds from advertising in 2008.

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Alright... how much does it cost to run a single f2p server?

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Alright... how much does it cost to run a single f2p server?

 

 

 

No idea, but I'll see if I can find something. You'd also have to consider the cost of maintaining user accounts.

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According to a Forum Mod:

 

 

 

The claim that F2P isn't paying it's way is likely false.

 

 

 

Anyone who reads the business news knows that the channel advertising for Jagex websites is very large source of income for both RuneScape and Fun Orb.

 

 

 

While it used to be Wild Tangent, I'm not sure what the current channel advertiser is now. Who ever has the deal to supply advertising for Jagex's Free-Players is huge news in the online gaming industry news sites. It's no small pennies, and in fact might qualify as big bikkies in the online advertising world.

 

 

 

Free-Players do pay by proxy, when viewing ads on free worlds, which uses their bandwidth and their system resources. While that isn't a significant amount for the end-user, all the users viewing that advertising is enough to pay for the the services used by an estimated 5 Million Free-to-Play users, including the servers, hosting/bandwidth as well as the costs of support staff; and if business articles regarding this are correct, enough to give Jagex a quite tidy profit from running the F2P game too.

 

 

 

Jagex isn't silly, and it would've factored those costs into bringing F2P onto the RuneScape forums as well; so as a Member I simply don't buy the argument that I'm paying for free-users. If anything, in these troubled economic times the Free-to-Play side of RuneScape is set to expand as some Members find that they need to cut costs, which might mean their RuneScape subscription side is the part of the game that isn't growing as usual. The Free-to-Play model is gaining a lot of attention in the MMO industry, which is why a number now are trying to follow in Jagex's footsteps by releasing games using a similar model. So to claim it's actually costing Members money is very likely not the case at all.

 

 

 

So the argument used that Members are paying for services F2P get for 'free' is a disingenuous one in my view (i.e. it's not telling the truth).

 

 

 

This to my mind is why allowing F2P access to the forums isn't in fact taking away from Members.

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F2P gives Jagex 7% of its income before subtracting the costs of maintainence. Idk what the total income is, but it should be easy to figure out now.

 

 

 

EDIT: @ guy above me. 97%+7%=104%

 

 

 

'Twas a Typo.

 

 

 

Gotcha. Just thought I'd point it out though.

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Alright... how much does it cost to run a single f2p server?

 

Not a lot, at the very most it'd be £1000 per month.

 

 

 

So if that's the extreme estimate, £1000 a month, it's £12000 per year per server.

 

I counted 76 F2P English servers - I'll even over-estimate it and call it 85 total F2P servers.

 

12k*85 = the extreme value would be £1,020,000 per year.

 

 

 

£2.2 mil - £1.0 = £1.2 mil a year just from F2P.

 

 

 

Anyone want to take a guess how many staffers they have dedicated to F2P, and how much they're paid?

 

 

 

Still looking for the definitive, "running this server costs this much for jagex" from an official source.

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Alright... how much does it cost to run a single f2p server?

 

Not a lot, at the very most it'd be £1000 per month.

 

 

 

So if that's the extreme estimate, £1000 a month, it's £12000 per year per server.

 

I counted 76 F2P English servers - I'll even over-estimate it and call it 85 total F2P servers.

 

12k*85 = the extreme value would be £1,020,000 per year.

 

 

 

£2.2 mil - £1.0 = £1.2 mil a year just from F2P.

 

 

 

Anyone want to take a guess how many staffers they have dedicated to F2P, and how much they're paid?

 

 

 

Still looking for the definitive, "running this server costs this much for jagex" from an official source.

 

 

 

I wouldn't think they have many staff at all dedicated to FTP, as the members world includes the FTP and everything in that, all they need to change is deactivating certain features.

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I saw a post here a while ago that showed that Jagex makes 97% of it's revenue (Runescape Revenue that is) from P2P, and 7% from F2P.

 

 

 

Lol.

 

 

 

You think they just want to break even? They make bank doing this.

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We've established that hobgoblinpie made a typo. The real statistic is 93% p2p and 7% f2p.

 

 

 

F2P gives Jagex 7% of its income before subtracting the costs of maintainence. Idk what the total income is, but it should be easy to figure out now.

 

 

 

EDIT: @ guy above me. 97%+7%=104%

 

 

 

'Twas a Typo.

 

 

 

Gotcha. Just thought I'd point it out though.

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Looking at those charts to answer this question doesn't mean squat, frankly. What you need to know are these two things:

 

 

 

- What kind of equipment their servers are running, and

 

- What kind of host package they have with their provider.

 

 

 

The equipment will tell you the initial [rental] cost of the servers, and the package will tell you how much per month they're shilling out for bandwidth. You should also compensate for the *possibility* of a Member/Freeplay world existing at the same time on the same server.

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You should also remember that almost nobody would become members if there was no free version.

 

 

 

 

 

Lulz, there's no free version of WoW and that has plenty of members. (Free trials DO NOT COUNT)

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You should also remember that almost nobody would become members if there was no free version.

 

 

 

 

 

Lulz, there's no free version of WoW and that has plenty of members. (Free trials DO NOT COUNT)

 

That is quite different in that they were already a well known company with many players playing other games made by them. Also, Free trials do count, they provide a bit of experience towards the game.

 

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43% of the average active players are FTP.

 

 

 

32293972 - 9729180 - 14497311 = 8,067,081 pounds for all server\bandwidth\hosting\etc. costs not mentioned above, with 43% directed to FTP for a total of 3,468,844 pounds plus wages for FTP maintenance and updates. So FTP loses around 1.3m pounds per year plus salary costs, and that doesn't include the number of members who click on the front page instead of in game ads.

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There you are. 2.2m pounds from advertising in 2008.

 

 

 

um doesnt europe use euros not pounds? i could be wrong

Britain hasn't converted to the Euro, despite being part of the EU.

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Do they really have a separate server for each world? Or are some running virtual servers? Hmmmm...

 

Separate servers, I would assume.

 

 

 

OT: I don't think there's going to be a definitive "running 1 F2P server costs exactly £*** with £*** net profit" from Jagex. What's been posted here is about as much as is known.

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Do they really have a separate server for each world? Or are some running virtual servers? Hmmmm...

 

Separate servers, I would assume.

 

 

 

OT: I don't think there's going to be a definitive "running 1 F2P server costs exactly £*** with £*** net profit" from Jagex. What's been posted here is about as much as is known.

 

 

 

Especially since they have server's all over the world. Its more expensive to pay someone upkeep/maintenance in the US then say, Mexico.

 

 

 

It would be hard to say the profit on a single f2p server as well. Seeing as they probably make a lot more money off using a free server as an advertisement for the paid version, then they do off the actual ad revenue. I know if I was never f2p, I wouldn't be playing, and they wouldn't be getting $5/month from me. Lets see, a year and a half of membership is ~$90, say 30% gets taken away in taxes and fees, thats about $60 they've grossed off me. And since I wouldn't be paying them that money if f2p servers had not existed, you could almost say that they generated that revenue off f2p.

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