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Business models trends - Game Connection America 2012

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Business models trends - Game Connection America 2012

  1. 1. Biz models trends Diane Lagrange - ICO Partners
  2. 2. About me • Ubisoft • Ncsoft • ICO Partners
  3. 3. PAY UPFRONT
  4. 4. Pay to access Service Product
  5. 5. Licensing/Merchandising/Transmedia
  6. 6. Physical
  7. 7. Experience
  8. 8. SUBSCRIPTIONS
  9. 9. Subscription games Dungeon and Dragons Online juin-09 World of Warcraft Lord of the Rings Online sept-10 Star Wars : Old Republic Champions Online janv-11 EVE Online Age of Conan juil-11 Aerrevan août-11 Rift City of Heroes sept-11 Final Fantasy XI Fallen Earth oct-11 Final Fantasy XIV Lineage 2 nov-11 Dark Age of Camelot DC Universe Online nov-11 Mortal Online Everquest 2 déc-11 Darkfall Star Trek Online janv-12 Gods & Heroes janv-12 Perpetuum Aion févr-12 WAR Everquest mars-12 TERA Earthrise TBA
  10. 10. Removing cap & ceiling
  11. 11. MICRO-TRANSACTIONS
  12. 12. State of microtrans • Granularity, no ceiling, flexibility for the design • Millions of sizes fits everybody > 1 size fits “all” • Very different philosophies and revenue models
  13. 13. Variety of micropayments models Zynga Pay rate 5.3% ARPPU $31 ARPU $1.64 Nexon Pay rate 9.9% ARPPU $16.5 ARPU $1.63 Aeria Games ARPPU $90 Est ARPU $15-20
  14. 14. Increasing conversion
  15. 15. Consumables/durables
  16. 16. From consumable to subscription
  17. 17. Increasing number of transactions
  18. 18. Types of items bought - Wooga
  19. 19. « Razor and blades »
  20. 20. Whale baits/anchors
  21. 21. Collectible/random items
  22. 22. Strategy: buy revenge
  23. 23. LoL : buy control, customization, time
  24. 24. RPG : advancement & time
  25. 25. Engagement vs monetization
  26. 26. ADVERTISING
  27. 27. Advertising : Mobile • Should grow, but slowly • Rovio Q1 2011 : 30% advertising • Evolution of formats • Loss of offerwall revenue
  28. 28. Social games advertising
  29. 29. PLATFORMS & BIZ MODELS
  30. 30. Mobile/tablet • F2P = 65% + revenue iOS& Android • Payment infrastructure took a while, not there yet on Android • Subscription : – Order & Chaos – Big Fish Games, Onlive iOS? • Advertising : minoritary, loss of offerwall revenue
  31. 31. Facebook • Mostly micropayments • Subscriptions: – Order & Chaos closed – Playdom games – Kabam working on hybrid model • Advertising – Mostly very low monetization games – Product placement
  32. 32. Console 2009 : $15M 2010: $30M 2012 : $39M first 3 months
  33. 33. Impact on development process • Analytics feedback loop • More frequent updates • Evolutionary design • Consumers are shaping the game • Vocal minority less important : Battlefield Heroes
  34. 34. Other models • Paid to play (Poker) – Acquisition tool , can it become a business model? – Mechanical Turk game? (protein fold) – Twitch.tv, Youtube • Cut on player transactions – Diablo 3 – IMVU, Second Life, Everquest did it before • More uncertain models – Non-profit microfinance game – Processing power
  35. 35. Conclusion • Future = many hybrid business models aggregated • Question = which are core, which are ancillary? • Direct in-game monetization always first step
  36. 36. Q&A
  37. 37. Thank you! diane@icopartners.com www.slideshare.net/ICOPartners www.icopartners.com/blog @icodiane www.facebook.com/icopartners

Editor's Notes

  • 40% of revenue of RovioMind Candy : $100 M revenue merchandising 2011Ankama : big publishing and animation activities
  • Skylanders = 200 million sales last quarter, 20 million figures sold
  • 1st time spender promotion or discountFree currency to train users using cash shop
  • Koreanlegislation : probability must begiven.
  • Dream world : learning points = 60% revenue
  • Wild ones: focus on monetizingweapons, not maps, life, characters, clothingRevenue X4
  • Flurry : US ad spending : 1% on mobile vs 23% time share (more than web 22%)Offerwall = 30% Glu revenue before
  • Zoo World 40%Zynga 7%Alsoevolving

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