Trion surpasses $100m in fundraising ... without releasing ANYTHING

by James Ransom-Wiley { Sep 23rd 2008 at 9:00AM }

Take note: Certain really rich folks are showering Trion World Network Inc. with money. Wait ... Trion who? Exactly. Don't fret being out of the loop, we've only mentioned Trion a handful of times (read: just three) and it's our job to be in the know. Today Trion reminds us there's good reason to keep tabs on the server-based gaming company, as it's now raised over $100 million after a recent $70 million Series C funding round (a very formal way of saying, venture capital firms and media companies, like Time Warner and NBC Universal, have been dropping their change in the collection cup since 2006 -- a lot of it). And the best part is, Trion still hasn't released anything.

So if you're wondering how to get rich like Trion, we strongly advise taking our crash course on the company after the break.

Trion was founded in 2006 by Lars Buttler, former vice president for Global Online at Electronic Arts, and Jon Van Caneghem, creator of the Might and Magic franchise. The company has offices in Redwood Shores, San Diego, and Austin, where it's picked up a number of NCsoft exes. Trion is in the business of server-based gaming; specifically, developing its own large-scale, server-side platform designed to launch just about any kind of game (big and indie) on a 24/7 live service. Games -- Lars calls 'em "channels" -- are simulated in clusters of servers. From your machine, be it PC or console (Trion has already acquired the rights to develop and publish for PS3 and is currently working with an Xbox 360 developer), you're simply rendering the game, not doing actual computing.

"Digital distribution is just the beginning."

"Digital distribution is great, but just the beginning," Lars explains. To date, digital distribution has settled on delivering the same kind of content we've traditionally bought in a box, but Trion envisions a different future for broadband retail (hint: this is how the company's hooked all those investors). Trion believes the business model has to change, and so does the content. Its service proposes developers "build enough to get out there," and then continue to add on (and patch) as revenue grows and consumer feedback is gained. While it sounds an awful lot like users would be paying to beta test, the ideal "channel" launch would not be incomplete, just have room to grow. Regardless, pricing is going to have to be carefully modeled and will fall into several categories, including subscriptions, item sales, and oft-dreaded microtransactions (but Trion and its partners are a ways away from dealing with that headache).

What's attractive about Trion's platform to publishers and developers is the promise of reduced (or even nullified) piracy and increased profit. Since users only download art assets and other related files, it's nearly impossible to pirate a game from the service. To play, you'll always have to connect to Trion's servers (read: publishers can finally make money in piracy-laden markets). And as a digital platform, publishers cut out the retail middlemen (yes, that means you, GameStop). On top of this, Lars assures that despite a shift in the business model (i.e., a game can be released and supported over time without the need to front a huge sum for development and, in turn, abandon upon release for the next project), there won't be a shift in development processes. The actual handcrafting of games won't need to be changed, and Trion handles the server-side "heavy lifting."

So are we looking at the future of the industry? That's the question, ain't it? Obviously Trion's worth the risk of some large investments, but we want to see some actual games before making our call -- there's that Sci-Fi Channel one, plus a fantasy MMO helmed by Caneghem in the works. Lars promises the next big announcement from Trion will be, finally, about the channels games. We can't wait.

Tags: jon-van-caneghem, jon-van-vaneghem, lars-buttler, server-based-gaming, trion, trion-world-network

Reader Comments (Page 1 of 1)

aj @ Sep 23rd 2008 9:24AM

Wow. It's the ultimate DRM.

Now, what about bandwidth caps? What about having to basically go through TWO seperate subscription services (the game service, and your ISP) to access games that you, presumably, own?

I still think it's easier to take a disc and put it into your machine. And I think most gamers will ultimately think so too.

NoHitHair @ Sep 23rd 2008 3:32PM

I can't think of a single product that each time I use I must prove I own.

Thranx @ Sep 23rd 2008 9:13PM

Sure... every MMO ever made.

I don't have a problem with DRM that requires a login, I think it's a hassle free way for users to access their software and it's a method that publishers feel confident in.

But *gasp* I have to have the internet to play my game. I would have rather have had LusacArts release Force Unleashed with a DRM that required me to login to the game than to not have it release on PC at all... piracy was thier delcared reason for not releasing on the PC.

aj @ Sep 23rd 2008 9:39PM

But with an MMO you know you're buying a game that you need to be online to play.

What happens when you start buying single player games and your Playstation won't let you play your single player game without you plugging it into the internet and allowing it to dial up and get permission?

Or what happens when it's 2 AM and your ISP is doing maitenance (mine likes to shut down for about half an hour at 2 AM every couple of days), and guess what? You can't play that game you paid for, despite the fact that it at no point requires you to be on the internet!

Or what happens in 10 years time, and you feel nostalgic and dust off your old game, but the DRM server doesn't exist anymore so you just can't play the game anymore, ever.

I think there is a fantastic argument for physical copies of games that you can just play.

copa @ Sep 23rd 2008 9:59AM

"There won't be a shift in development processes."

Bullshit.

Joloto @ Sep 23rd 2008 10:06AM

They'll need more than a shit load of money to get people to actually use this stuff.

Mitochondria @ Sep 23rd 2008 10:04AM

Ha, give me 100mil and i'll make an empire, give these guys money and all they do is talk a big game. The fact is piracy is something that will be around forever. The pirates are just as smart as the people making the games and these servers, possibly smarter.
As long as people exist the problem will as well.

Haggard (Mr.ESC resurrection force) @ Sep 23rd 2008 10:06AM

Shoulda just invested in Steam..

BigD145 @ Sep 23rd 2008 1:10PM

Shoulda invested in AIG.

Dahk @ Sep 23rd 2008 1:42PM

BigD, you did. Just you're not a shareholder =P.

Dale @ Sep 23rd 2008 10:11AM

This sounds suspiciously like an update of the Phantom business model.

Vidikron @ Sep 23rd 2008 10:27AM

Wow... this sounds horrible. So now you won't even get the complete game you paid for? And what's this crap about the computing being done on their servers?? If I'm reading that correctly, that means that we would have to deal with lag in SINGLE player games. That's absurd.

Kriss @ Sep 23rd 2008 10:34AM

To the dumdums who comment here and the bigger dumdums who write here.

You do realize that dropping 100m on this sort of development is a risk that is not only less of a risk than say developing a game but also one that has a much higher chance of paying back 100+ fold if it does work out.

Compared to game development this is smart spending...

Vidikron @ Sep 23rd 2008 10:46AM

Frankly, I hope they lose it all for the reasons I gave above. This is nothing more than DRM at its worst.

KeenCommander @ Sep 23rd 2008 10:36AM

Sensors indicate money loss...

Just don't crash that Ferrari this time!

Sylver @ Sep 23rd 2008 10:49AM

you win. have a cookie.

Chalito @ Sep 23rd 2008 11:03AM

"To play, you'll always have to connect to Trion's servers (read: publishers can finally make money in piracy-laden markets)."

Good luck with that. What they still don't understand is that in 3rd world countries where piracy is rampant, most people can't afford the price. Take for example Argentina, a new game costs 300 pesos, which is roughly 100 dollars. But if you take into account the average salary, it's equivalent to an american having to pay 300 dollars for a game.

Please keep in mind I'm not discussing whether that justifies anything or if it's right or wrong. The point is that if they implement this, and remove the possibility of piracy, it's delusional to think that will translate in more sales. Wealthy people already use originals mostly, and the rest won't spend 10% of their salary on a game.

mismajor99 @ Sep 23rd 2008 3:35PM

Exactly. This is something that would desperately need attention. STEAM struggles with this issue in a way, trying to ensure people are actually in certain countries and paying where they live. It's very easy to use Proxies to connect to these services and "act" like you're from a particular country where the exchange works in your favor...ie..English pretending they're American, but this is basically the opposite problem.

I do think many in Asia and SA do not have the money to pay these prices, only a small percentage(and in some countries in Europe/ASIA/SA, Console gaming is way too overpriced), and bootlegs on the street are so easy to come by, that a service like this, where a broadband connection is required, might not work at all in these areas. Unless a proper and affordable infrastructure is setup in many countries, the Trion network is going to have issues.

This service would need to ensure that when they sell for example Bioshock for $1 USD to a South American or Asian customer, it's not to an American or Brit or a Euro using a Proxy to fake the address. This is why I'm told STEAM has pricing issues between countries, imposed by the Publisher. I'm guessing this will be eliminated on the Trion network, since this is essentially Cloud computing, and Proxies would essentially be impossible to use due to latency concerns...etc..Just thinking out loud.

If this takes off, we could see games being cut off from entire populations altogether, at least the titles that are released only on the Trion network.