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Game Design & Business Models
 

Game Design & Business Models

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Presented by Neil Harris, President & COO of HeroEngine, part of Idea Fabrik at Casual Connect Hamburg Feb 9, 2012.

Presented by Neil Harris, President & COO of HeroEngine, part of Idea Fabrik at Casual Connect Hamburg Feb 9, 2012.

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    Game Design & Business Models Game Design & Business Models Presentation Transcript

    • Game Design & Business Models Neil Harris [email_address]
    • HEROENGINE 3D ONLINE GAMES
    • MY LIFE IN ONLINE GAMES
    • LESSON I WISHED MY FATHER HAD TAUGHT ME
      • NEVER FALL IN LOVE WITH YOUR BUSINESS MODEL!
      • THEY ARE FICKLE AND WILL LEAVE YOU BROKE AND BROKEN HEARTED.
    • BUSINESS MODELS I HAVE LOVED
      • Pay-by-the-minute
      • Monthly subscriptions
      • Buy the box, pay no more
      • Microtransactions
    • BUSINESS MODEL IMPACTS
      • GAME DESIGN
      • AUDIENCE SIZE
      • DEMOGRAPHICS
    • ISSUES FOR GAME DESIGNERS
      • TIME VS MONEY
      • REVENUE VS FAIRNESS
      • ADVANCEMENT SPEED VS CONTENT PRODUCTION
    • BUY THE BOX AND PLAY FOR FREE
    • ONE-TIME PURCHASE ADVANTAGES
      • LOWEST SERVER COST
      • FITS STRENGTHS OF PUBLISHERS
    • ONE-TIME PURCHASE DRAWBACKS
      • No Recurring Revenue:
      • Frequent Expansions & DLC
      • Heavy Focus on PvP = VERY Hard Core
      • P2P = Instanced = Hacking/Cheating
    • WHY I LOVED PAY-BY-THE-MINUTE
      • More Fun = More Time
      • More Time= More Money
    • PAY BY THE MINUTE $60 ARPU!
    • BAD GAME MECHANICS TO MAKE MONEY
        • Increase Travel Distances
        • Slow Healing
        • Training Separate from Combat
        • Punish Players
    • #1 DESIGN CHEAT IN ONLINE GAMES
      • BY SLOWING PLAYER PROGRESS
      • DESIGNERS WORK LESS HARD
      • TIME BECOMES LESS FUN
    • DISADVANTAGE OF BY-THE-MINUTE
      • HIGHEST ARPU BUT
      • SMALLEST AUDIENCE
    • THE FORMULA
      • REVENUE = PRICE * QUANTITY
    • ANNUAL REVENUE POTENTIAL
      • BY THE MINUTE
        • High ARPU, Audience 1,000-50,000
      • SUBSCRIPTION
        • ~$15 ARPU, Audience 50,000-millions
      • FREE-TO-PLAY MICROTRANS
        • <$1 ARPU, Audience potential tens of millions
    • BUSINESS MODEL IMPACT: SUBSCRIPTIONS
      • ARPU HAS A FLOOR AND A CEILING
          • No chance to benefit from “whales”
          • Low value for light users
      • HAPPIEST USERS = LOTS OF TIME
    • PREMIUM SUBSCRIPTIONS
      • GEMSTONE INCREASED ARPU TO $27
        • PREMIUM SUBSCRIPTION AT $40/MONTH (35% of audience)
        • SPECIAL EVENT TICKETS (up to $100 each)
    • SUBSCRIPTION GAME DESIGN
        • SLOW DOWN PLAYERS = GRIND
        • HUGE WORLD = HUGE EXPANSIONS = HUGE COST
        • PvP END-GAME (LESS CONTENT REQUIRED)
        • WoW IS SPEEDING UP ADVANCEMENT TO BROADEN AUDIENCE
    • FREE TO PLAY + MICRO TRANSACTIONS
      • Huge Audience!
        • More Casual
        • Needs Low Hurdle
      • Balance Paid Goods with Fairness
        • Annoyances + Cures
        • Speed or Convenience
        • Vanity Items
        • New Areas / Content
    • MAXIMIZE REVENUE & FUN IN FREE-TO-PLAY A MODEST PROPOSAL
      • WHAT IF…?
        • YOU COULD DIVIDE YOUR PLAYERS INTO SEGMENTS
        • AND OFFER EACH GROUP ONLY THOSE ITEMS THAT THEY VALUE MOST HIGHLY?
      • CONJOINT ANALYSIS
    • CONJOINT SURVEY EXAMPLE
    • CONJOINT METHODOLOGY
      • CHOOSE ATTRIBUTES
        • Damage, XP, Specials, Speed…
      • DEFINE ITEMS AS COMBINATION OF ATTRIBUTES
        • Sword, 5 DPS, Fire Spell, etc
        • Attributes can include appearance
    • SEGMENT PLAYER AUDIENCE
      • PER BARTLE:
        • ACHIEVERS
        • EXPLORERS
        • SOCIALIZERS
        • KILLERS
    • MATCH ATTRIBUTE VALUES TO SEGMENTS BEAUTY DAMAGE SPEED TOTAL VALUE ACHIEVERS $4 $3 $2 $9 EXPLORERS $2 $4 $5 $11 SOCIALIZERS $5 $2 $1 $8 KILLERS $1 $5 $4 $10
    • HEROENGINE 3D ONLINE GAMES [email_address]
    • Game Design & Business Models Neil Harris [email_address]