game monetization

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Game Monetization

Game Monetization

Introduce topic1

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

Platforms

Steam

Facebook

Console

Mobile

Monetization Strategies

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

InsideSocialGames.com

AppData.com

Pocketgamer.co.uk

AppAnnie.com

Thats It!