Dan Sabbagh
Enter our Snapshots of Summer photography competition
Spending a bank holiday weekend as a level 99 magician might not be everybody's cup of tea, but when the alternative is a trip to Ikea with the family, the attractions of RuneScape, a sword-and-sorcery online computer game, are at least understandable.
On January 21, Martin Luther King Day in the US, when stock markets in the rest of the world were going into meltdown, a record 250,000 people logged into the realm of Gielinor, the creation of Jagex, a little-known Cambridge company.
A million people subscribe to RuneScape, paying £3.20 a month in Britain, and the equivalent of $5 (£2.50) elsewhere, for unfettered access. After the juggernaut of World of Warcraft - which has ten million subscribers - RuneScape is arguably the next most successful multiplayer game, although its ethos is completely different. There is no need to own special software to play it, as RuneScape runs on any browser using Java, although that means the graphics are simple.
Unlike Warcraft, the Jagex philosophy is to ensure that a large part of RuneScape can be played free. Fans, of course, get lured into paying; membership gives them access to more land, more skills and spells, and freedom from adverts. When Jagex allowed subscribers to create their own houses, such is people's obsession with property that 100,000 signed up as paying subscribers. The number of free players is still far greater: in all, six million have played over the past fortnight.
Still, the paying players ensure that RuneScape is highly profitable. Accounts for 2006, the latest available, show Jagex making pre-tax profits of £10.2 million on sales of £16.8 million (a margin of 60 per cent). Geoff Iddison, the chief executive of the 400-employee company, says that “revenue and profits are growing at 35per cent”, making it worth well over £100 million.
Yet until recently, Jagex has been run relatively uncommercially: RuneScape has not been promoted; a game launch in 2007 never happened, and profits depend on spotty boys. “I'd estimate the audience is over 60 per cent male, aged between 13 and 18,” says Mr Iddison, probably overemphasising the female contingent.
The new boss came in from eBay to develop “a three-year plan” and dismisses talk of a sale. A US venture capital firm, Insight Venture Partners, may own 35 per cent, but the low-profile founders, led by the original designer, Andrew Gower, own the rest. “We have control and we don't need to raise any more money; we have enough for organic growth,” Mr Iddison says, adding that the plan at present is to see how much the company can be expanded.
RuneScape has already survived one test. Alarmed by the growth of people buying and selling RuneScape treasure on the internet - for example, a million gold (the game's currency) sold for $5 - the company acted to stop it. Imre Jele, head of RuneScape development, said: “We had a big problem with traders in China, and some of the former Russian states, using stolen credit cards to buy subscriptions, and then use bots [automated software] to farm gold. Not only was it cheating; it was getting boring for players to find a load of bots mining.”
Game designers wanted to ban so-called real world trading, but they grappled to find a mechanism to stop it. “What we realised is that we had to stop unequal trading in the game; where suddenly somebody would turn up with a million gold,” Mr Jele says, and so the company introduced a range of restrictions, for which the launch of a “stock market” was crucial. Now only people can trade items of similar value - and for the moment, real world trading is in abeyance. The price of a million gold shot up to $20 to $25 - and the clean-up cost RuneScape 60,000 subscribers.
This month, Jagex's drive for growth brings the launch of Funorb, a website aimed at “the time pressure gamer” on the view that anyone over 21 lacks the time to commit themselves to RuneScape. It will have 18 simple but highly playable 2D games. All can be played free, but extra levels will cost £2 a month. The hope is that Funorb will bring new people to gaming in the lunch hour, as Jagex tries to replicate Nintendo's success in expanding the gaming demographic. If it does, Jagex will one day be worth a lot of gold.
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the collective power of smart thinking. Submit a solution and be in with a chance to win a Flip MinoHD Camcorder
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
42,945
2008
71,450
Car Insurance
Not Specified
MI6
UK-based
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Save up to £1,000 per couple with Elite Vacations at the five-star Constance Lemuria Resort
and do the British Isles this Summer.
Save up to 60% with Oxford Hotels and Inns
Try our inspiring luxury holidays to the Indian Subcontinent and South East Asia.
Great offers available
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
The Jagex profits will drop, they have updated Runescape and got rid of the most popular feature. Don't watch this space.
Lots, Town, Country
I hopw Jagex new CEO will really improve Runescape.
Smith, New York, USA
you call gamers "spotty boys" and you want our opinions?
fuckface, wankshire,
I played 5 years of runescape to perfect my pure ( for pking )
and jagex removed the pking ... all this money wasted ...
i wish pking come back. All the fun is now gone, all my friend quitted runescape through...
Alin Potra, saint-lambert, canada
This update, though fixing problems, removes all the fun and co-operative gameplay between two real-world friends. You can't ask your friend to loan you cash anymore and you can't split cash you both earn by doing activities. This game treats everyone, no matter how close of friends, like strangers.
Sean Giedosh, Hazleton, United States
I think that the updates are necessary. Without the updates, Runescape would die when everyone can go online and buy off gold and become wealthy. We need to realize that Runescape has become harder and certainly a challenge to survive in pking and harder to earn money when the prices drops.
Steve Wilkos, Ohio, USA
While I understand this move and its importance, Jagex's decision on when to introduce the updates was seriously flawed. Much better would have been to have SEVERAL loot based pvp minigames up while shutting off the wilderness, and not a single, and terribly flawed Bounty Hunter.
Jim Tian, Chicago, United States
RuneScape has NEVER been a PKing game for me. I'm much more into skilling. I have not had a problem with the PKing changes or the trade limit. I have loved all the new content, and I am very happy that Jagex is catering for players who believe in earning their money - fairer for players like me.
Lee Clarke, Southampton, England
I love the new updates, the Grande Exchange has helped the RuneScape Economy Greatly, and for pking, I was never really into it, and I never realized that it was so popular. In my view it was replaced by a minigame where players actually have a choice of risking their items. New Graphics in July,08.
Ashlee, New York City, United States
I am so glad I quit when I did. I stuck it out for over a year after RS2 came out. Classic will always be the true game. If Jagex weren't so forceful in pushing people to the train wreck on which they lavished so much work, they could have stuck around policed RSC and kept it growing well.
Connor Behan, Hamilton ON, Canada
Runescape was not all about pking or giving free gold to friends. it is all about the fun and enjoyment of getting a new lvl up or making new friends. personially i think the updates were a good idea, the only problems that i have with them is the revenants. other then that it was a good move.
Mark, Swan Hill, Australia
They already replaced the 60k that left & then some just a few weeks ago they had a record 268k people online at once. What they did with Fist of Guthix is amazing I was an avid Pker but I like Fist of Guthix even more.
Then ontop of that the graphic updates are very nice now :)
Cathy, Sydney,
Jagex did ruin RS with their RWT updates. Their changes caused many hundreds of the older, experienced and mature players to quit. All that's left now is those who are too addicted to leave and the utter masses of amazingly unintelligent noobs. Jagex replaced bots that don't bother you unless your skilling, with noobs that bother you 24/7, not realising that we can't give them free stuff anymore.
Ben, Australia,
I think its really unfair that the free players cant get enough quest points to raise their trade limit. Jagex should lower the limit for 4.8k gp unbalaced trade from 50 quest points to 39 quest points (the max for a free player).
David, Newark, DE
runescape was ruined in december 2007, only to get worse in february, 60k subscribers have quit, jagex does not get all that involved in playing the game to actually get in the players heads to make the game better; they just go off of what they think will suffice the players when really they have no idea how to even play runescape
mark, memphis, Tn, USA
They did not ruin RS.It's just different now.Times change and life goes on.
Lauri, Tallinn, Estonia
they ruined the game its a joke now
kyle, port perry, canada
the entire game was ruined for ever and i doubt Jagex will admit their mistake and an easier solution to the bots would be to encourage it..........
Dillard, San Antonio, TX, U.S.A
They lost 60k subscribers. Oh well. That still leaves, oh, 940k subscribers to the Members worlds. To me, that's not to shabby at all. The people who left were probably the bots. The game is much funner now. Skilling is back, minigames are much funner, and heck, I can do much more in the area once known as the Wilderness. Runecrafting! Runecrafters are worshipping Jagex. They don't worry about being killed once they cross that "Berlin Wall". In all, I think everyone who enjoys the game is happy. Jagex, player moderators, dedicated players.
Chris, London , UK
Runescape may have lost 60000 subscribers, but how many were these were bot accounts that have now left Runescape? The majority of them, I think.
Jagex had to do something about RWT, no matter how ugly the consequences, banks were refusing to be involved with them due to stolen credit cards. No bank, no business, no runescape, simple.
Luke, Sheffield, England
Having such graphic standard on a Java-Based is more than just simple. However, jagex has got more advertising to do for RuneScape.
Having add-ons for RuneScape is important, but it would still be great if they could improve their gaphics further.
Dave Kingston, Planet Jupiter,
People who thought Runescape was just a pking game are the ones who are leaving. But there are plenty of people who enjoyed the other aspects of the game: skilling, minigames, and a community, now free of bots and gold farmers. These are very very happy with the changes, that make the game more enjoyable for them. Some ex-players, who had left the game tired of the narrow mentality of pkers and of robotic characters getting their supplies, have returned to Runescape, when friends told them about the changes. A company that prefers to lose paying members in an effort to make the game better and more fair is one to be respected, in my opinion.
Anna, London, UK
Runescape was a PK'ing game, Simple. The statistics of it before the removal of PKing where good. It could compete the the intesity of WoW, for a fraction. They stoped real world gold yes, but what happend to the 60,000 or more that left the World of Runescape to other succesfull MMORPG'S? World of Warcraft has a movie on the rise in 2009, TV Commercials, HUGE Gatherings all over the world, the players are happy. Runescape's arn't. It was simply a PK'ing game.
Gihan Elleray (Dpdr in Runescape), Norwich, England
Jagex has ruined the game with their Player vs Player updates. I've played for years and had 3 paid subscriptions. I've cancelled 1 already and will let the other 2 go when they run out.
Time to find another online game.
Darvaria, Memphis ,
Finely something new! im planing on buying a membership on the first day this is released to see what it is all about.
Chris Miller ( Pigeonman13 ), Manistee, usa/mi
Jagex is a great company and runescape could be much better by creating maybe a ladder...
that way when there are so many people rejoining there is always a race to 99 skills and lvl 126 or 138 i think it is now.
It could last 1 year or so each ladder..
Brendan, Childers,
Jagex have ruined runescape with all its updates.
The dobmister, U.S.A, America