The Power of Free To Play

Adrian Crook [email_address] www.FreeToPlay.biz

“ Free” In the Real World

Free To Poop No cost to public or taxpayers Providers recover costs/profit via ads on exterior

Free To Rock Download only launch Free / Name Your Price 40% conversion $3M revenue Still debuted at #1

Free To Fly Nearly free, 5€ flights across Europe Airline derives revenue from cargo, incidentals, etc

Back to games…

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

NOT a genre

NOT a platform

Numerous revenue models

Players play without paying

Increased player base allows for alternate monetization

KartRider 160M users world-wide

Runescape $60M annual revenue

Webkinz 7M unique users per month 340% growth in 1 year

Club Penguin Bought by Disney for $700M

All Eyes On Free The Battle for Attention NPD: 91% of kids PC Online gaming = f2p

Current F2P Revenue Models

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

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

Merchandise Barbie Girls 9.5M users in 9 months Webkinz $20M retail in 24 months Maple Story CCG

Barbie Girls

9.5M users in 9 months

Webkinz

$20M retail in 24 months

Maple Story CCG

Information Sale Food Fight Surveys for Vcash Potential 36K users daily Avg 2 surveys/user 25c per survey $18K/day ANNUAL: $6.6M

Food Fight

Surveys for Vcash

Potential

36K users daily

Avg 2 surveys/user

25c per survey

$18K/day

ANNUAL: $6.6M

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

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

Looking Forward…

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

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

F2P Growth Challenges Virtual property Linden v Bragg Slow broadband 6mbps US vs 45mbps Korea Rising dev costs Battlefield Heroes

Virtual property

Linden v Bragg

Slow broadband

6mbps US vs 45mbps Korea

Rising dev costs

Battlefield Heroes

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

Second Life slowdown

Electric Sheep layoffs; UX issues

Secondary markets

IGE; unsanctioned item sales

Kids-only games

NPD: After 18, kids leave F2P

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

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

Adrian Crook [email_address] www.FreeToPlay.biz