The MMO market is a tough place to be.
With SWTOR effectively going free-to-play, The Secret World developer Funcom sacking employees to stay afloat, and even MMO-powerhouse World of Warcraft losing subscribers, few MMO developers (like ArenaNet with Guild Wars 2) are doing well for themselves.
In recent years, most MMOs have shirked paid subscriptions and gone the way of free-to-play in hopes of better financial fortunes.
Paragon Studio's City of Heroes was no exception. Last year, after seven years of sticking to the subscription model, City of Heroes finally went free-to-play, adopting a three-tiered system where players could still opt to pay a subscription fee for in-game bonuses.
Clearly, the model wasn't sustaining the company. Last month, Paragon Studios announced that it would be shuttering its doors and taking down City of Heroes. Publisher NCSoft had a "realignment of company focus and publishing support", presumably because the MMO wasn't turning a profit.
Fortunately, Paragon Studios is issuing refunds out to City of Heroes players who recently paid into the game. Customers who continue to have a recurring subscription to the MMO or bought in-game currency, called Veteran Points, will be issued a full refund. Additionally, those with prepaid game cards for City of Heroes should be able to gain a refund by contacting Paragon's customer support.
Paragon Studios will be hosting a few special events to give the superhero MMO a last sendoff, though details are still forthcoming.