"Brave New Virtual World: Making Free-to-Play Games Work for You"

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"Brave New Virtual World: Making Free-to-Play Games Work for You" -- a presentation first given at the Play for Free Seminar in Copenhagen on 19.November.2009 -- http://www.dadiu.dk/seminar/playforfree/programme.htm

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  • Margaret Wallace – Full bio here: http://en.wikipedia.org/wiki/Margaret_Wallace
  • The Founders of Playmatics Have been involved in the creation of many original and innovative IP titles.
  • The Founders of Playmatics Have worked on some of the largest and most popular brands.
  • What’s the promise of free-to-play games?
  • Source: http://www.virtualworldsnews.com/2009/03/virtual-goods-make-up-85-of-habbo-revenue-ads-and-new-products-to-grow.html
  • Source http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2009/08/10/story2.html?b=1249876800^1894931
  • What brought me here?
  • Rebel Monkey, Founded in 2007
  • Raised Money
  • CampFu had lots of features
  • CampFu had lots of press
  • Functions to allow my friend to work for me in the game and keep my restaurant running.
  • Gaining social status in Gaia Online by adorning your avatar to express your true self.
  • Decorating the exterior of your restaurant in Restaurant City to
  • Here, a virtual good is used to show the player that they need to achieve level 22 before being able to access a sandwich to give to friends.
  • Rewarded for doing a pro-social action inside of the game.
  • The owner of this restaurant ensures getting better ratings the more time and money they spend on decorating their restaurant.
  • Not a matter of ship it and forget it.
  • Must pay constant attention to customer acquisition funnel.
  • It’s a constant process.
  • "Brave New Virtual World: Making Free-to-Play Games Work for You"

    1. 1. www.playmatics.com Margaret Wallace, CEO margaret@playmatics.com Twitter: @MargaretWallace
    2. 2. Involved in Games Since 1996 Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    3. 3. Playmatics Founders: Lots of Experience in Creation of Original & Innovative IP Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    4. 4. Playmatics Founders: Experience Working with Large Media Companies & Licensed Brands Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    5. 5. What a long, strange trip it’s been! Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    6. 6. Brave New Virtual World? Making Free-to-Play Games Work for You Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    7. 7. • Global Market: The global online games market is expected to reach $13 Billion in revenues by 2011 For 2009, $5.5 billion globally spent on virtual goods Market Overview Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    8. 8. • North America: North American virtual goods activity could exceed $15 billion by 2014 In 2009, an estimated $400 million to $600 million will be spent on virtual goods in the United States Market Overview Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    9. 9. • Increasingly Competitive: The market is very crowded. For example, in January 2009, there were a reported 200 virtual worlds in development targeting younger people alone. A popular game on Facebook can be cloned in as little as 1 month Lots of money pouring into space Market Overview Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    10. 10. • Rise of Social Networks: Facebook grows 600k+ month. Time spent on social networking sites tripled in August 09 Playfish network currently hosts around 9M active users at any one time – this number was ~3M less than a year ago. Playfish Installed 100M Games In 18 Months Packrat – estimated $15k -- $25k/month Market Overview Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    11. 11. Types of Free-to-Play Games (There are pro’s and con’s for each.) Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    12. 12. Social Single-Player CasualCore / Hard-Core
    13. 13. Hardcore / Core MMO Earth Eternal Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    14. 14. Casual MMO Puzzle Pirates Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    15. 15. Virtual Worlds / Social Worlds Habbo Hotel Virtual Goods Make Up 85% Of Habbo Revenue -- $70M in 2008 Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    16. 16. Social Games (Casual) Farmville Zynga gets two-thirds of its projected $100 -- $200 million-plus annual revenue selling virtual goods ranging from digital farm buildings to poker chips. Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    17. 17. Social Games (Core) City of Eternals Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    18. 18. Funware Example: Gift-Giving as a Game Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    19. 19. Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    20. 20. Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    21. 21. $ Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    22. 22. Powered by Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    23. 23. Focus on Real-Time Co-Op Games 12+ Million Subscribers $1 Billion+ in North America Mario Party 8 6M+ Sold Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    24. 24. CampFu Was Packed With Features
    25. 25. Games, Virtual Goods & Virtual Economies Work Together to Create an Ecosystem Copyright 2009. Margaret Wallace. Please Attribute Credit if You Use These Slides
    26. 26. Functional Items Decorative Items Social Items Successful Use of Virtual Goods Touches on Core Experiences Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    27. 27. Types of Virtual Goods Examples Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    28. 28. In-Game / Functional Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    29. 29. Social Status Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    30. 30. Integrating Virtual Goods Into Free-to-Play Game Experiences Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    31. 31. Gifting Playfish titles are typically released with just 20% of their final features developed and implemented. The rest is introduced over time in response to the demands of the community and based on the overall success of the title. Source: “Building Social Games At Scale” Panel Social Gaming Summit, June 23, 2009 Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    32. 32. Decorative Playfish sells around 20M items in Restaurant City every day – through either spending money- or through time spent in game. Source: “Building Social Games At Scale” Panel Social Gaming Summit, June 23, 2009 Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    33. 33. Collectibles & Rare Items Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    34. 34. Setting Goals Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    35. 35. Trading / Exchange Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    36. 36. Contests & “Prizes” Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    37. 37. Rewarding Behavior Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    38. 38. Rewarding Consumption Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    39. 39. Important lessons learned along the way…. Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    40. 40. Keep It Simple, Stupid.
    41. 41. Free-to-Play Games are a Lifestyle…. Require full-time commitment…. Must have good metrics…. Launching the product is just the beginning… Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    42. 42. Constant Attention to User Acquisition  What’s The Bounce Rate?  How Much Churn?  What Are Conversions? LVP? Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    43. 43. Customer Acquisition Funnel How many people who come to your website actually stay and register? If 100,000 come to your site, you’ll be lucky if 5% to 15% take the step to register. Of that 2% to 15% -- anywhere from 1% to 15% will become purchasing players! Buying Your Users: The major players in social games are spending millions of dollars on user acquisition. Example Source: http://www.insidesocialgames.com/2009/11/17/zy nga-raises-15-2-million-at-a-625-million- valuation-or-is-this-old-news/ Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    44. 44. Predictions Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    45. 45. Continued Consolidation Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    46. 46. More “Stupid Money” Pouring In
    47. 47. Legal Issues Everywhere! Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    48. 48. In-App Purchases for iPhone Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    49. 49. Resources VentureBeat – www.venturebeat.com TechCrunch – www.techcrunch.com Inside Social Games – www.insidesocialgames.com Virtual Goods News -- http://www.virtualgoodsnews.com/ Virtual Economy Research Network -- http://virtual-economy.org/ Games & Innovation -- http://gamesandinnovation.com Margaret Wallace on Twitter: www.twitter.com/MargaretWallace Copyright 2009. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
    50. 50. Questions? Contact: Margaret Wallace, CEO margaret@playmatics.com Twitter: @MargaretWallace Disclaimer: All images here, if not the explicit property of the author, are used for educational purposes only. They belong to their rightful owners and I wouldn’t want it any other way.

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