The Lord of the Rings Online has enjoyed explosive growth since its
April unveiling. And it’ll probably keep doing so—if it remains true to
Tolkien’s vision
Jeff Anderson is not a nerd. The 40-year-old chief executive of
Westwood (Mass.) video game developer Turbine is six feet tall, with
the frame of an NFL linebacker. Nevertheless, he presides over a vast
and rapidly growing virtual world of elves, orcs, dragons, and hobbits.
In April, Anderson’s company took the wraps off the Lord of the
Rings Online, a massively multiplayer online role-playing game ( MMORPG )
for PC, based on J.R.R. Tolkien ‘s classic books. The explosive growth
of the game—players have created some 4 million unique characters in
just five months—has vaulted the company into the top tier of online
game design companies and made it the largest privately held developer
of massively multiplayer games in the U.S.
In the game, players create avatars based on characters from the
books—hobbits or orcs, for instance—to pursue quests and battle
monsters in an expansive virtual world closely based on the tales’
locations and events. They can also chat with other players via an
internal instant message system, or join groups to play collaboratively
and virtually trade objects such as weapons or potions. A copy of the
game costs $29.99, with an additional $14.99 fee per month for
continued online access. Turbine also offers an alternative payment
option: A $299 lifetime membership with no subsequent fees.
It’s a good time to be introducing new products into the burgeoning
online games market. In May, the NPD Group reported that a growing
majority of all gamers prefer to play online. According to research
firm Strategy Analytics, the worldwide online games market, which
generates more revenue than other genres of games and either video or
music sales, currently rakes in nearly $4 billion a year. Strategy
Analytics reckons the online games market could triple in size over the
next five years, ballooning to $11.8 billion.
Adept at Dealmaking
With the Rings game, Anderson is attempting to transform Turbine
from an obscure game developer working on contract for big publishers
such as Microsoft (MSFT) into a well-regarded gaming brand of its own,
capable of competing with offerings from much larger companies such as
Vivendi’s (VIVEF) Blizzard Entertainment, maker of the current top
MMORPG title, World of Warcraft, which has 9 million subscribers
worldwide.
"We’re more nimble than a larger company," Anderson insists of his
team, which consists of about 200 employees including developers,
designers, support, sales, and administrative staff. Inking agreements
with European developer Codemasters and CDC Games for an upcoming
Chinese edition of the Lord of the Rings Online, Anderson’s team has
proven adept at the dealmaking crucial to extending multiplayer games
around the globe. Such deals allow the game to be operated according to
national regulations and to be translated into the appropriate
language.
The company isn’t shy to outsource, either, offshoring to India the
triage of support-related e-mails and the 3D modeling of some of the
game’s simpler objects. Nor has it shied away from hammering out
technology deals, licensing a software-based physics engine from Irish
developer Havok to make its titles look and play more realistically
without having to rewrite code from scratch.