Web Hosting Talk : Web Hosting Main Forums : Specialty Hosting and Markets : Game Servers : Gameservers Market

[keywolf]

Hi

Is the gameservers market worth getting into?

[HG-Daniel]

I'm just gonna tell you what everyone else would have told you: No.

[keywolf]

what makes you say no?

[Adam H]

Because 99% of clients will be 10 year olds with their parents credit card.

Need i say more.

[keywolf]

Yep youve got a good point there

[HG-Daniel]

If you can do it right and have enough experience go ahead, but if you're a web/dedicated server host I wouldn't touch the game server industry since you don't know what you're dealing with.

"Game Servers are the next hot market!
Slim margins, heavy support, fickle customers, and moronic suppliers!
Start your own today!"

I forgot whose signature that was, but it pretty much sums it up.

[hiryuu]

That would be mine.

The big issue is renters tend to be kids with no jobs, so they're extremely cost-sensitive. Venture capital (gameservers.com*) and modern lemonade stands (kids just messing around over the summer) have driven the per-slot price below your cost, and dedicated server companies prevent much of a premium market.

* Just so you know what you're dealing with, last I heard, gameservers.com had around 40% of the market and installs dual-quad servers by the gross (144).

[r00ter]

David,

I would steer clear of the GS department until you can comfortably support at least a large Core 2 Duo box, without clients on it. Once you can do that, the added revenue will be a nice touch. But you have to plan extensively, because as Adam stated - 11 year olds play Counter Strike too.

[kiettyyyy]

I second all of these replies about the pre-teen kids that take their parent's credit cards. What you usually find is your payments some how.. become reversed a month later for the same reason.. "I didn't order this!", says the parent.

Steer clear of this market unless you already have the capital, a better than decent business plan, and that you are actually willing to stick to it for more than a summer.

Cheers!

[keywolf]

I was just enquiring as to what the markets like. If the gross capital needed ever becomes available I may give it a shot but from what youve all said it sounds like, at this moment in time its a waste of time

Thanks for your opinions WHT members

[HiDef-Laws]

Originally Posted by hiryuu

That would be mine.

The big issue is renters tend to be kids with no jobs, so they're extremely cost-sensitive. Venture capital (gameservers.com*) and modern lemonade stands (kids just messing around over the summer) have driven the per-slot price below your cost, and dedicated server companies prevent much of a premium market.

* Just so you know what you're dealing with, last I heard, gameservers.com had around 40% of the market and installs dual-quad servers by the gross (144).

That 40% figure is a total dreamworld.

[Defcon|Rich]

I wouldn't worry too much about gameservers.com and companies like them, From what I hear they break records for the amount of cancels every month so it's a wash. That business model has never been sustainable for the long haul. The key to GS's business is the enormous advertising budget, They advertise everywhere which brings in a steady stream of signups but on the other side they get a steady stream of cancels when customers realize they cannot spend $20 and get a decent game server. It's by design whether you realize it or not, As long as the signups exceed the cancels the model works. This wouldn't work in the real world but in the fast paced commerce of the internet it's right at home. There is a fine line though and personally I don't see it working into the future.

[SecureWH]

Originally Posted by Coldmedia - Adam

Because 99% of clients will be 10 year olds with their parents credit card.

Need i say more.

Money Is Money
Who cares where is cemes from...

[Adam H]

Originally Posted by SecureWH

Money Is Money
Who cares where is cemes from...

What i mean is, if mummy decides little johnny is spending too much time playing on the computer.

Goodbye Gameserver.

Also kids go through phases, one day its counterstrike source, next its world of warcraft.

Odds are little johnny wont be buying the server next month

[Frimon86]

Originally Posted by SecureWH

Money Is Money
Who cares where is cemes from...

If you are a business and plan to stay in for some time, you better care where it came from. This is where the big bad companies fail. They don't give a diddly squat where the money came from, who it came from, just as long as they make that money. I mean that's what its all about right? Make ... that ... money! Right? Wrong, companies should give a damn where the money is coming from because if their are no customers, their is no money. And without no money, their is no business. Customers pay for companies and employees salaries. People better understand this, and soon.

Originally Posted by Defcon|Rich

I wouldn't worry too much about gameservers.com and companies like them, From what I hear they break records for the amount of cancels every month so it's a wash. That business model has never been sustainable for the long haul. The key to GS's business is the enormous advertising budget, They advertise everywhere which brings in a steady stream of signups but on the other side they get a steady stream of cancels when customers realize they cannot spend $20 and get a decent game server. It's by design whether you realize it or not, As long as the signups exceed the cancels the model works. This wouldn't work in the real world but in the fast paced commerce of the internet it's right at home. There is a fine line though and personally I don't see it working into the future.

I agree to some of what your saying here.. but because you pay a lower price proves nothing. It only proves if the company is a good company or the company is a crap company, doesn't prove; low price = crap service, high price = top of the line service. Get out of here. Other than that, you make sencse, as always..