IP E-Games goes on pay-to-play mode for Diablo III

Digressing from its predominantly free-to-play business model, listed firm IP E-Games Ventures revealed that it employed the pay-to-play mode for its Diablo III role playing game (RPG) on exclusive license from Blizzard Entertainment.   E-Games executives said pre-orders from the Philippines reached 5,000 DVD-ROM boxes of the newly-launched RPG—an indication that one key revenue stream from Filipino gamers will be from online purchases using credit cards. "The number of boxes shipped to the country was not disclosed but IP E-Games did ensure that they have enough on stock to accommodate the demand in the local market. We hope that you can incorporate this clarification in the story," according to a statement from the public relations company hired by E-Games.  In the Philippines, Diablo III is available at authorized stores for P3,145. It is downloadable for SG$90 online. There is a “special alabaster-white Collector’s Edition sold exclusively in retail stores while supplies last.” Diablo III has an “auction house system that will allow players around the world to securely buy, sell and trade their treasures with other adventurers.”   According to the first Consumer Finance Survey of the Bangko Sentral ng Pilipinas, only 3.9 percent of Filipino households have and use credit cards. Of this, 63.6 percent have only one credit card while 22.2 percent manage to have two cards.   Among the households, there are four major groups identifiable in terms of the credit limit that includes:

• 16.4 percent with P15,000 and below

• 26.6 percent between P15,001 and P30,000

• 17.6 percent between P45,001 and P60,000) and

• 14.6 percent with P105,001 and up.

The same BSP survey found that only 21.5 percent of Filipino households have at least one deposit account.   E-Games has applied the free-to-play approach to these titles in its product line: Cabal Online, Audition Dance Battle, Point Blank, BandMaster and Granado Espada.   For these games, players purchase prepaid cards–the credits of which are consumed to acquire items used during the games.   Online all the time   E-Games executives, led by chief operating officer Heidi Garayblas, also disclosed at the launch of Diablo III Tuesday in Makati that the game cannot be played offline–unlike its immediate predecessor, Diablo II, which gamers could enjoy even without live Internet access.   “There is no way you can play this offline,” said Allen Amparo, E-Games product manager for the Blizzard portfolio.   They explained as well that piracy is not an issue with the latest title from Blizzard Entertainment because online play access is managed using the Battle.net account, which comes at no cost to the gamer who purchases Diablo III.   Disclosures   Garayblas said E-Games expects the contribution of Diablo III to its revenues to be “substantial” but declined to give any specific figure.   In its last disclosure to the Philippine Stock Exchange (PSE) in the form of news release on income and revenues–back in November 14, 2011–the holding firm of E-Games, IPVG Corp., said it had “strong increase in revenues” to P337 million in the first nine months of 2011 from P160 million a year earlier.   On May 2, 2012, E-Games informed the investing public that it bought the online publishing assets of Level Up! Inc. for $1.5 million.   In another disclosure dated May 3, 2012 IPVG Corp. revealed that it issued 400 million shares to BDO Private Bank at a subscription price of P1.00 per share.   Meanwhile, on May 9, the parent firm of BDO Private Bank, BDO Unibank, Inc. confirmed that it submitted “a proposal for consideration of the Philippine Deposit Insurance Corporation”, which has receivership control of the closed Export and Industry Bank.   The chairman of the board of IP E-Game Ventures is Jaime C. Gonzalez, who is also chairman of Export Bank. E-Games independent director Juan Victor S. Tanjuatco happens to be president of the closed bank.   Parent IPVG Corp. was supposed to have a special stockholders’ meeting last April 17 but rescheduled it to May 22.   E-Games operates a joint venture company with GMA New Media Inc. called X-Play Online Games Inc., which is engaged in the business of designing, operating and maintaining casual online gaming and casual online gaming related portals. —VS, GMA News