LOTRO: What is Going On?
For the last three years developers Standing Stone Games have followed a twelve monthly expansion schedule for the MMORPG The Lord of the Rings Online. Sadly that has not been the case this year. All we had so far in 2022 is two generic new zones that offer “same meat, different gravy” content. Both Update 32: Rangers and Ruin and Update 33: Yondershire, although enjoyable, have not brought anything substantially different to the game. A further small release, Update 33.1 The Further Adventures of Elladan and Elrohir, went live on Tuesday 19th July offering 5 new themed missions. To say that they are lacklustre is being generous. All of which raises the question, what is going on? 18 months ago there appeared to be a LOTRO renaissance after the game was acquired by EG7. Is the lack of an expansion this year an indication that things have changed and not for the better?
For the last three years developers Standing Stone Games have followed a twelve monthly expansion schedule for the MMORPG The Lord of the Rings Online. Sadly that has not been the case this year. All we had so far in 2022 is two generic new zones that offer “same meat, different gravy” content. Both Update 32: Rangers and Ruin and Update 33: Yondershire, although enjoyable, have not brought anything substantially different to the game. A further small release, Update 33.1 The Further Adventures of Elladan and Elrohir, went live on Tuesday 19th July offering 5 new themed missions. To say that they are lacklustre is being generous. All of which raises the question, what is going on? 18 months ago there appeared to be a LOTRO renaissance after the game was acquired by EG7. Is the lack of an expansion this year an indication that things have changed and not for the better?
Two developments have occurred recently that may shed some light on the matter. The first being the recent departure of producer Oleg Brodskiy (AKA Raninia) from SSG after just one year. He was brought in to work with the executive producer to facilitate change and streamline the business model. During that time a lot of older, chargeable game content was integrated into the free to play business model. Oleg was also far more accessible than other staff at SSG and certainly happy to talk about the game. However, coming from a mobile gaming background he may have been behind the release of the supporter packs that accompanied the latest patch. These are cosmetic bundles of the kind that usually accompany the various different tiers of an expansion pack. It will be interesting to see how they’re received. However, no explanation has been forthcoming as to why Oleg Brodskiy has moved on, apart from a vague comment about an “incredible opportunity”.
Secondly, there are the interesting internal politics of Enad Global 7. The company purchased Daybreak Game Company and its portfolio in December 2020. It subsequently became apparent that DGC was not just the publisher for Standing Stone Games but in fact their owner. EG7 appeared to have plans for LOTRO as the game had at the time 108,000 active players, of which 37.9% (41,000) subscribed generating nearly $10 million per year. Yearly revenue was $26.7 million making LOTRO the third-biggest playerbase out of DGC’s (now EG7’s) game portfolio. Circa March 2021, then CEO of EG7 Robin Flodin spoke positively about developing the newly acquired titles, fueling further speculation about a console version of LOTRO and a new game engine, which were previously mentioned in an investor briefing. However, Robin Flodin stepped down as CEO, five month later after a poorly received press interview. This paved the way for Ji Ham of Daybreak to take the reins as temporary CEO. In May this year Flodin sold his shares in EG7 changing the dynamics of the company as majority ownership effectively became controlled by senior DGC staff.
If you’re interested in more detail of this potential “reverse acquisition” then Wilhelm Arcturus has written a detailed post on his blog, The Ancient Gaming Noob. Obviously a lot of detail regarding corporate machinations doesn’t make it into the public domain but it’s hard not to speculate that the departure of Oleg Brodskiy and the changes within EG7 as well as DGC indicate that something is afoot behind the scenes with LOTRO. If the people who previously drove LOTROs development are back in control it doesn’t bode well for such ambitious plans as a console port or a revised game engine. Furthermore, I cannot see the new Amazon Prime show, The Lord of the Rings: The Rings of Power, getting released without some sort of gaming tie-in or related product. Is there another product waiting in the wings that may undermine LOTRO? Either way, after three consecutive expansions it is a little worrying that a successful formula should end so abruptly.
Finally, I return to the matter of the recently announced private LOTRO server Echoes of Angmar. If you do a little digging around online it appears that those involved with the project seem very well versed in the intricacies of the 15 year old MMORPG. Are these people who were directly or indirectly associated with the game at launch? The somewhat open manner in which this “rogue” server is being referred to seems to imply that those managing the project are not worried by the prospect of legal reprisals. This may be naivety but I’m not so sure. Is the timing of this independent project based upon something that LOTRO players don’t know about? Also, apart from the lack of an expansion there are still a lot of technical issues plaguing the MMO. The GUI still doesn’t support modern screen resolutions and the perennial issue of lag is a blight. I worry that the second coming of LOTRO so many hoped for, may have stalled before it even started and that as per usual, the player base will be the last to know.
LOTRO, Daybreak Game Company and Enad Global 7
It has long been suspected that Daybreak Game Company owned Standing Stone Games and was more than just their publisher. However, being a private company, DGC has been exempt from public scrutiny. Infact, they’ve gone out of their way to keep their cards close to their chest in recent years. Press releases and tweets have been posted and then deleted to try and cover their tracks. To quote Lord Melchett from Blackadder, DGC “twist and turn like a ... twisty-turny thing”. It’s all been somewhat unseemly but at the same time great fun to speculate about. However, on Monday 1st December, Swedish games company Enad Global 7 (EG7) announced that they were buying DGC. Furthermore, as EG7 are a publicly owned company, information about them is freely available. Hence an investor presentation was posted on their website, rich with details of their new acquisition.
It has long been suspected that Daybreak Game Company owned Standing Stone Games and was more than just their publisher. However, being a private company, DGC has been exempt from public scrutiny. Infact, they’ve gone out of their way to keep their cards close to their chest in recent years. Press releases and tweets have been posted and then deleted to try and cover their tracks. To quote Lord Melchett from Blackadder, DGC “twist and turn like a ... twisty-turny thing”. It’s all been somewhat unseemly but at the same time great fun to speculate about. However, on Monday 1st December, Swedish games company Enad Global 7 (EG7) announced that they were buying DGC. Furthermore, as EG7 are a publicly owned company, information about them is freely available. Hence an investor presentation was posted on their website, rich with details of their new acquisition.
Now the foibles and machinations of DGC have become a source of interest for numerous game journalists and bloggers over the years. I therefore strongly recommend the following articles by Bree Royce and Wilhelm Arcturus, as they dissect and delineate the information published in EG7’s investor presentation. Both make for very interesting reading, giving details of the “health and wealth” of the various titles that have been up to now, owned by DGC. I however, will simply focus on the details pertaining to The Lord of the Rings Online, as this is the MMORPG I have the strongest connection to out of all the games listed. Finally, we have some indication of LOTRO’s business performance and its playerbase. In terms of monthly active players, the game has 108,000, of which 37.9% (41,000) subscribe generating nearly $10 million per year. Overall, yearly revenue is $26.7 million. LOTRO has the third-biggest playerbase out of DGC’s (now EG7’s) game portfolio.
So business wise, LOTRO is looking quite healthy. Furthermore, the forthcoming Amazon Prime, Middle-earth based TV show is being cited by EG7 as a potential means of raising consumer awareness of the IP. Something that can then be capitalised upon to promote LOTRO. Any sort of proactive marketing has long been absent from this MMO. Many players were baffled by the lack of any tie-in with the Hobbit movie trilogy, when they were released. Perhaps we will now see a change in policy over the next 12 months. It certainly seems that EG7 has provisional plans. Perhaps the most interesting of these is a proposed graphical and systems overhaul of the current PC version of LOTRO, along with further large content updates and a conversion of the game for “nextgen consoles”. Something that was originally mooted back in 2010, when the game first went free-to-play.
The significance of a console port of LOTRO should not be underestimated. The data in EG7’s investor presentation shows that the console version of DC Universe Online is a popular title and a robust source of revenue. Let us not forget that The Elder Scrolls Online, Neverwinter and Star Trek Online have all increased their players due to the success of their respective console ports. In fact the innovative revision of the UI in STO to accommodate the use of game controllers, actually offers greater functionality than the PC version. LOTRO suffers from a cluttered UI and an excess of quickslots and at present this can only be addressed with plugins. Therefore, a revision of the game may well prove beneficial to all players. Whether the game will support crossplay is another matter. However, I would like to see a console port of LOTRO made available as it would definitely bring new players to the game and re-invigorate the existing community. Let us see whether EG7 proves to be the “new broom that sweeps clean”.