Creating value out of virtual goods Simon Guild Chairman, Bigpoint
Introduction - Bigpoint The Company The Figures Founded 2002 Number of Employees 550+ Concept Free-to-Play (F2P) browser Optional premium services on demand LocationsHamburg, Germany Berlin, GermanySan Francisco, USA SãoPaulo, Brazil Malta 60 active games, 30 languages More than 150 million users 250,000 registrations per day Awards Winner Best Gaming Portal 2010 Best Browser Game 2010 International Business Award 2010 Deloitte Rising Stars 2009 European Business Award 2009 Best Gaming Website USA 2009 MTV Games Award 2009
What is a virtual good? Virtual goods are non-physical objects that are purchased for use in online communities or online games. They have no intrinsic value and, by definition, are intangible. [thanks to wikipedia]
On the 14th of December 2009 the Crystal Palace Space Station was listed on public auction and in later that month it sold for 3,300,000 PED which is equivalent to $330,000 USD. The winning bidder was Erik Novak aka 'Buzz Erik Lightyear' from Canada. Buzz is already well established in Entropia as one of the most skilled crafters. He owns and supplies a chain of department stores across Planet Calypso. Owning the Space Station means he will now earn tax when players mine and hunt in the station.
Why focus on games? Source: comScore 46% of all Internet traffic is generated byonline game sites.
Maximize revenue by perfectly aligning demand with consumers marginal willingness to pay Caps total revenue by excluding those unwilling to commit to recurring revenue Limiting those willing to pay more. Price Subscription Price Demand Demand Quantity Quantity Subscription vs. Micro-Transaction
The 10% Rule REVENUE USERS Generate 80% of revenue 10% of users Generate 15% of revenue 15% of users Generate 5% of revenue 75% of users
Game Mechanics Social Context Value Marketing Mix
For additional information contact us! BIGPOINT Inc. 2 Bryant Street Suite 220 San Francisco, CA 94105 USA Tel +1 646.350 0860 Fax +1 646.350 0863 BIGPOINT GmbH Christoph-Probst-Weg 3 20251 Hamburg Germany Tel +49 40.88 14 13- 0 Fax +49 40.88 14 13- 11 email@example.com www.bigpoint.net