Post on 15-Apr-2017
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Classic ModelBuild console or PC game, sell it at retailDevelopment required huge teams with huge budgetsHad to obtain expensive dev kit hardware from Sega, Nintento, etc.
New ModelDigital downloads eliminating need for retail in PC marketMobile and Facebook changed barrier to entry drasticallyVery inexpensive to develop
Temple Run Development TeamKeith Shepherd and Natalia Luckyanova
Lots of Money!
Over $50m revenue last year
Puzzles and Dragons Revenue$280m last year$92m last monthAverages over $2m per day99% of revenue is from Japan
Free vs Paid
PaidUser pays up frontPotential revenue is limited to number of downloadsWorks better for established franchises or brandsCan also include in app purchases
How Does Free Make Money?AdsIn App Purchases
AdsIntrusive to gameplay experienceDifficult to implement successfullyMarket dominated by Google owned AdmobGenerates decent revenue
In App PurchasesWhat to sell in game?
More ContentUpgrade to full gameMore levelsTime consuming for developer
Power UpsMore powerful itemsFree passes through difficult levelsMany players disapprove of pay to win items
Cosmetic ItemsNew avatarsNovelty itemsNo effect on gameplayGenerally accepted form of IAP
Restriction MechanicsPurchase items that allow the player to play more oftenRequires addicting gameplayMany players reject this form of gameplayIf successful, extremely lucrative
Fast Tracking ProgressBooster items that speed up progression through gameGame should start out fast and rewarding, then slow progress dramatically, enticing players to purchase items that get them progressing quickly again
FreemiumFree to playOffers in app purchases (IAPs) to produce revenuePotentially much more lucrative than paid games
Relies on user engagement and social mechanics to drive long term revenueRevenue is not tied to number of downloads, each user can make many purchases
Core LoopCentral gameplay mechanic that user performs over and over again to progress
CurrencySoft currency is earned in game, allows player to progress slowlyPremium currency is purchased with real money, allows player to greatly speed up progression
Make It SocialAdd incentives for players to involve friendsCooperating should be mutually beneficial
Clash of ClansCurrent #1 grossing game in the US storeEstimated revenue of over $50m last year
Market ConsiderationsWhich platform to target?Which genre to develop?Which monetization strategy for which platform and genre?
Market Research ResourcesInside Social GamesApp DataPocket GamerApp Annie