Your SlideShare is downloading. ×
0
×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Monetization trends by Territory (GIT Money Talks 2013)

2,002

Published on

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,002
On Slideshare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
27
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Monetization trends by TerritoryPaha Schulz, Director of Business DevelopmentCrytek
  • 2. • Korean – German• 13 Years in the Games Industry• 6 Years Asia, 7 Years Europe (4 Years UK, 3 Years Germany)• NCsoft (Korean HQ & Europe), Electronics Arts, Crytek• Business Development, Online Publishing, Market Analysis, Marketing, Production,Monetization• Currently Responsible at Crytek:a. Warface & other Games-as-Service Title Business Developmentb. Portolio Management: Games-as-Service Content SourcingPaha Schulz – Who am I
  • 3. • One of Europe’s largest independent game developers• Digital entertainment and technology creator• 14 Years in business• 800+ employees from 40+ nations in 10 studios worldwide• 5 AAA games released, 5+ in development• Expanding business, via technology, into: Real-time 3D for Simulation, Education, Filmand TV, OnlineCrytek – Company Facts
  • 4. Crytek - Core units & brands•Creation of interactiveentertainment content & franchisesbased on CryENGINE technology•Platforms: Console, PC, Online,Mobile•Development & licensing ofCryENGINE technology•Development & operation of socialpublishing platform•Serve as an independent freemiumdistribution and service platform foronlinegames & contentGAMESREALTIME 3DTECHNOLOGYSOCIALENTERTINAMENTPLATFORM
  • 5. Monetization trends by TerritoryLet’s start!
  • 6. Definition of FREE (Economy)Free 1•Direct Cross-Subsidies•i.e.: try firstfree, buylaterFree 2•3rd partyMarket•i.e. ad-supportedFree 3•Freemium•i.e. Paid userssubsidy freeusersFree 4•NonmonetaryMarkets•i.e. Attention,reputation,likesFree: The Future of a radical priceBook by Chris Anderson (author of “The Long Tail”)Free economy is a subsidy economy
  • 7. Focus for territorial differences in contextFree 1•Direct Cross-Subsidies•i.e.: try firstfree, buylaterFree 2•3rd partyMarket•i.e. ad-supportedFree 3•Freemium•i.e. Paid userscover freeusersFree 4•NonmonetaryMarkets•i.e. Attention,reputation,likes
  • 8. Free 1: Not obvious, but many games do thisFree 1•Direct Cross-Subsidies•i.e.: try firstfree, buylaterHybrid of Free1 & 3•Freemiumbut at certainpointbecomingdirect cross-subsidies• “Lite” VS full model• Demo, shareware etc.• F2P games which at some point getimpossible to play without paying• Mobile games which are F2P, but notnecessary online multiplayer focus tend to belike this more
  • 9. FREE 2: Some territories have specific 3rd party modelsFree 2•3rd partyMarket•i.e. ad-supportedSouth Korea: PC Bang (Internet Café) B2B (3rd party) business model
  • 10. Free 3: Most territorial differencesFree 3•Freemium•i.e. Paid userscover freeusersDemand of FreeUser•Expectation of theservices, content& game-playprovided for freeDemand of payinguser•Expectation ofservices, content,& additionalgame-play if paidMatter of Behavioral economics (social, cognitive and emotional factors)
  • 11. Why the difference?1. Cultural differences in social physiology• Ex: You paid, you deserve to be better VS you paid, you cheated2. Industry history of different anchoring• Ex: all the games I played charged weapons for time usage VS permanent but breakable weapons3. Cultural difference of behavior, preference & popularity• Ex: I want my character to look like this K-pop idol VS I want my character to look gritty and manly4. Difference in Disposable Income• Ex: I need to skip lunch to get this item VS Where can I put my credit card details5. Legal & legislation differences• Ex.: Random items are gambling, You can’t kill Pandas, PvP with item-drop possibility is 18+
  • 12. 1. Cultural differences in social physiology2. Industry history of different anchoring3. Behavior, preference & popularity4. Difference in Disposable Income5. Legal & legislation differencesWest VS AsiaWest• Pay2win is unfair• Free2play is low quality• Give me my differentchoices• I have more money thentime to do thisAsia•Let me pay to be better at this•Everything is free to play(legitimate or pirated)•Give me the best option tofeel like a Movie star•I still don’t want to pay andrather find a way to spendtime on it (even if I have the money)•Our government dictates whatis not allowed in the games*High-level generalization
  • 13. 1. Cultural differences in social physiology2. Industry history of different anchoring3. Behavior, preference & popularity4. Difference in Disposable Income5. Legal & legislation differencesAsia: China VS Korea VS JapanChina•That guy has money &paid, that’s a skill•This game chargesdifferent to Crossfire•The K-pop girl skin iscool!•I don’t have money tospend this week•No killing panda, noskulls, no playing toomuch every dayKorea•That guy paid, I hatehim•This game chargesdifferent to SuddenAttack•This K-pop girl skin iscool, but what’s thestats?•I don’t WANT to spendmoney you evil game•Under-aged shouldn’tplay after 12am, PvP isfor adults, maybegames are like drugsJapan•Let’s not playcompetitively, playcooperatively•Where is the gatcha?•Anime, Manga, Otaku• Gatcha! Here is mymoney!•Gambling is bad butgatcha is good*High-level generalization
  • 14. West: North America VS Europe VS Russia1. Cultural differences in social physiology2. Industry history of different anchoring3. Behavior, preference & popularity4. Difference in Disposable Income5. Legal & legislation differencesNorth America•Can’t I just put in mycredit card &subscribe?•F2P are games onFacebook andmobile•My character lookslike Wolverine. It’sawesome!•Credit Card pays formeEurope•This game is broken,you have to pay towin•F2P are browsergames or low qualityPC games•Barbarians! Vikings!Napoleon!•I only have cash,how can I give youthis?•Germangovernment doesn’tallow XRussia•I like capitalism. Youpay and you get it.•F2P has low qualityservice, but’s it’sfree and if you pay itgets better•This public holidayoutfit is cool!•I have money tospend, just give methe reason*High-level generalization
  • 15. Case Study: Warface
  • 16. North America & Europe•Gface is Crytek‘s own developed & operatedsocial publishing platform•Serve as an independent freemium distributionand service platform for online games & contentCrytek ownSocial Game PlatformAsia & Emerging MarketsPublisher Territory•More territories & deals innegotiationsWarface: Global ServiceDevelopmentTeamLive TeamPublishingTeam•Major content development• Overall creative direction•Local content development & tweaking• Owner of live environment• Owner of publishing & service• Either local publisher or Gface
  • 17. Tools to adopt & localize (culturelize)Numeric changes• Make as many things numeric (progression, weapon recoil, XP, rewards etc. etc.) and makeit easy to be changeable with tools live operators can change easilyAll monetization models switchable• permanent items, time based items, micro-subscriptions, random items etc. etc. Have themall in the system, and turn on what works and don’t what doesn’tLocal cultural items• Manly version, K-pop version, Anime version etc. etc. be flexible enough to provide relevantcontent and be open to regional expertsGood Analytical tracking systems• No use of being flexible if you don’t know what’s happening during live service. Have goodanalytical tracking systems in place to be responsive & reactive to game community
  • 18. Paha SchulzDirector of Business Development, Games-as-ServiceEmail: paha@crytek.comCrytek GmbHGrüneburgweg 16-18D-60322 Frankfurt am Main

×