Business models trends - Game Connection America 2012
 

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ICO Partners talk at Game Connection America 2012 - current review and trends of video games business models

ICO Partners talk at Game Connection America 2012 - current review and trends of video games business models

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  • 40% of revenue of RovioMind Candy : $100 M revenue merchandising 2011Ankama : big publishing and animation activities
  • Skylanders = 200 million sales last quarter, 20 million figures sold
  • 1st time spender promotion or discountFree currency to train users using cash shop
  • Koreanlegislation : probability must begiven.
  • Dream world : learning points = 60% revenue
  • Wild ones: focus on monetizingweapons, not maps, life, characters, clothingRevenue X4
  • Flurry : US ad spending : 1% on mobile vs 23% time share (more than web 22%)Offerwall = 30% Glu revenue before
  • Zoo World 40%Zynga 7%Alsoevolving

Business models trends - Game Connection America 2012 Presentation Transcript

  • 1. Biz models trendsDiane Lagrange - ICO Partners
  • 2. About me• Ubisoft• Ncsoft• ICO Partners
  • 3. PAY UPFRONT
  • 4. Pay to accessService Product
  • 5. Licensing/Merchandising/Transmedia
  • 6. Physical
  • 7. Experience
  • 8. SUBSCRIPTIONS
  • 9. Subscription gamesDungeon and Dragons Online juin-09 World of WarcraftLord of the Rings Online sept-10 Star Wars : Old RepublicChampions Online janv-11 EVE OnlineAge of Conan juil-11Aerrevan août-11 RiftCity of Heroes sept-11 Final Fantasy XIFallen Earth oct-11 Final Fantasy XIVLineage 2 nov-11 Dark Age of CamelotDC Universe Online nov-11 Mortal OnlineEverquest 2 déc-11 DarkfallStar Trek Online janv-12Gods & Heroes janv-12 PerpetuumAion févr-12 WAREverquest mars-12 TERAEarthrise TBA
  • 10. Removing cap & ceiling
  • 11. MICRO-TRANSACTIONS
  • 12. State of microtrans• Granularity, no ceiling, flexibility for the design• Millions of sizes fits everybody > 1 size fits “all”• Very different philosophies and revenue models
  • 13. Variety of micropayments models Zynga Pay rate 5.3% ARPPU $31 ARPU $1.64 Nexon Pay rate 9.9% ARPPU $16.5 ARPU $1.63 Aeria Games ARPPU $90 Est ARPU $15-20
  • 14. Increasing conversion
  • 15. Consumables/durables
  • 16. From consumable to subscription
  • 17. Increasing number of transactions
  • 18. Types of items bought - Wooga
  • 19. « Razor and blades »
  • 20. Whale baits/anchors
  • 21. Collectible/random items
  • 22. Strategy: buy revenge
  • 23. LoL : buy control, customization, time
  • 24. RPG : advancement & time
  • 25. Engagement vs monetization
  • 26. ADVERTISING
  • 27. Advertising : Mobile• Should grow, but slowly• Rovio Q1 2011 : 30% advertising• Evolution of formats• Loss of offerwall revenue
  • 28. Social games advertising
  • 29. PLATFORMS & BIZ MODELS
  • 30. Mobile/tablet• F2P = 65% + revenue iOS& Android• Payment infrastructure took a while, not there yet on Android• Subscription : – Order & Chaos – Big Fish Games, Onlive iOS?• Advertising : minoritary, loss of offerwall revenue
  • 31. Facebook• Mostly micropayments• Subscriptions: – Order & Chaos closed – Playdom games – Kabam working on hybrid model• Advertising – Mostly very low monetization games – Product placement
  • 32. Console 2009 : $15M 2010: $30M 2012 : $39M first 3 months
  • 33. Impact on development process• Analytics feedback loop• More frequent updates• Evolutionary design• Consumers are shaping the game • Vocal minority less important : Battlefield Heroes
  • 34. Other models• Paid to play (Poker) – Acquisition tool , can it become a business model? – Mechanical Turk game? (protein fold) – Twitch.tv, Youtube• Cut on player transactions – Diablo 3 – IMVU, Second Life, Everquest did it before• More uncertain models – Non-profit microfinance game – Processing power
  • 35. Conclusion• Future = many hybrid business models aggregated• Question = which are core, which are ancillary?• Direct in-game monetization always first step
  • 36. Q&A
  • 37. Thank you!diane@icopartners.comwww.slideshare.net/ICOPartnerswww.icopartners.com/blog@icodianewww.facebook.com/icopartners