Transcript
Game Monetization
Classic Model
• Build console or PC game, sell it at retail• Development required huge teams with huge
budgets• Had to obtain expensive dev kit hardware
from Sega, Nintento, etc.
New Model
• Digital downloads eliminating need for retail in PC market
• Mobile and Facebook changed barrier to entry drastically
• Very inexpensive to develop
Temple Run Development Team
Keith Shepherd and Natalia Luckyanova
Platforms
Steam
Console
Mobile
Monetization Strategies
Lots of Money!
Over $50m revenue last year
Puzzles and Dragons Revenue
• $280m last year• $92m last month• Averages over $2m per day• 99% of revenue is from Japan
Free vs Paid
Paid
• User pays up front• Potential revenue is limited to number of
downloads• Works better for established franchises or
brands• Can also include in app purchases
How Does Free Make Money?
• Ads• In App Purchases
Ads
• Intrusive to gameplay experience• Difficult to implement successfully• Market dominated by Google owned Admob• Generates decent revenue
In App Purchases
• What to sell in game?
More Content
• Upgrade to full game• More levels– Time consuming for developer
Power Ups
• More powerful items• Free passes through difficult levels– Many players disapprove of “pay to win” items
Cosmetic Items
• New avatars• Novelty items• No effect on gameplay– Generally accepted form of IAP
Restriction Mechanics
• Purchase items that allow the player to play more often
• Requires addicting gameplay– Many players reject this form of gameplay– If successful, extremely lucrative
Fast Tracking Progress
• Booster items that speed up progression through game
• Game should start out fast and rewarding, then slow progress dramatically, enticing players to purchase items that get them progressing quickly again
Freemium
• Free to play• Offers in app purchases (IAPs) to produce
revenue• Potentially much more lucrative than paid
games
• Relies on user engagement and social mechanics to drive long term revenue
• Revenue is not tied to number of downloads, each user can make many purchases
Core Loop
• Central gameplay mechanic that user performs over and over again to progress
Currency
• Soft currency is earned in game, allows player to progress slowly
• Premium currency is purchased with real money, allows player to greatly speed up progression
Make It Social
• Add incentives for players to involve friends• Cooperating should be mutually beneficial
Clash of Clans
• Current #1 grossing game in the US store• Estimated revenue of over $50m last year
Market Considerations
• Which platform to target?• Which genre to develop?• Which monetization strategy for which
platform and genre?
Market Research Resources
• Inside Social Games• App Data• Pocket Gamer• App Annie
InsideSocialGames.com
AppData.com
Pocketgamer.co.uk
AppAnnie.com
That’s It!
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