The Power of Free-To-Play

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    Notes on slide 1

    Hello and welcome to the talk I gave at GDC 2008 on Mon Feb 18 at 2 pm at the worlds in motion summit entitled The Power of Free to Play. That’s a very Anthony Robbins-esque title, I’m not very much of an Anthony Robbins-esque speaker, but I’ll do my best.

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    The Power of Free-To-Play - Presentation Transcript

    1. The Power of Free To Play
    2. Adrian Crook [email_address] www.FreeToPlay.biz
    3. “ Free” In the Real World
    4. Free To Poop No cost to public or taxpayers Providers recover costs/profit via ads on exterior
    5. Free To Rock Download only launch Free / Name Your Price 40% conversion $3M revenue Still debuted at #1
    6. Free To Fly Nearly free, 5€ flights across Europe Airline derives revenue from cargo, incidentals, etc
    7. Back to games…
    8. What is Free To Play?
      • NOT a genre
      • NOT a platform
      • Numerous revenue models
      • Players play without paying
      • Increased player base allows for alternate monetization
    9. KartRider 160M users world-wide
    10. Runescape $60M annual revenue
    11. Webkinz 7M unique users per month 340% growth in 1 year
    12. Club Penguin Bought by Disney for $700M
    13. All Eyes On Free The Battle for Attention NPD: 91% of kids PC Online gaming = f2p
    14. Current F2P Revenue Models
    15. Virtual Item Sales
      • Unlimited ARPU – users decide ceiling
      • Value drivers
        • Rarity/price
        • Visibility
      • Dual currency systems
        • Attention-based
        • Real money-based
      • Basics
        • 5-10% conversion rate
        • Functional, decorative, consumeable, etc
    16. Merchandise
      • Barbie Girls
        • 9.5M users in 9 months
      • Webkinz
        • $20M retail in 24 months
      • Maple Story CCG
    17. Information Sale
      • Food Fight
        • Surveys for Vcash
      • Potential
        • 36K users daily
        • Avg 2 surveys/user
        • 25c per survey
        • $18K/day
        • ANNUAL: $6.6M
    18. Other Revenue Models
      • Advertising
        • Banners, PPC, Video, Sponsored Items
      • Auctions/Player Trades
        • Live Gamer, Entropia, Station Exchange
      • Subscription Tiers
        • RuneScape, Club Penguin, DR
      • Event/Tournament Fees
        • Shot Online (Golf), Ultimate Baseball
      • Real Estate/Land Use Fees
        • SL, Entropia
      • Affiliate
        • TrialPay, $uperRewards
      • Donations
        • Kingdom of Loathing
      More on www.freetoplay.biz
    19. Looking Forward…
    20. F2P Design Tips
      • Respect the free players!
      • Support integrated graphics
      • Be browser-based (or small dl)
      • Offer regional payment systems
      • Provide short compulsion loops
      • Defer user sign up
    21. F2P Growth Challenges
      • Virtual property
        • Linden v Bragg
      • Slow broadband
        • 6mbps US vs 45mbps Korea
      • Rising dev costs
        • Battlefield Heroes
    22. F2P Growth Challenges
      • Second Life slowdown
        • Electric Sheep layoffs; UX issues
      • Secondary markets
        • IGE; unsanctioned item sales
      • Kids-only games
        • NPD: After 18, kids leave F2P
    23. F2P Trends & Opps
      • New F2P platforms: social networks, iPhone
        • $upercash, EA Blueprint
      • Breaking down the walled garden model
        • Metaplace, WoW Armory, DR Char AP
      • NPD top sellers as F2P games
        • “ We’re looking at the sort of game that five, six or seven years ago , they would have been putting in a box and selling on retail shelves. With the new technology, we can deliver this through the browser.” – Mark Faulkner, Jagex
    24. Adrian Crook [email_address] www.FreeToPlay.biz

    + adriancrookadriancrook, 2 years ago

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