Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Game design as marketing: Business/game developer’s dilemma Juho Hamari @ GAS Seminar 2.3.2010
Juho Hamari – M. Sc. (Econ) Researcher @ HIIT Information System Science / eBusiness Scope: Business models related to sel...
<ul><li>Our game is  </li></ul><ul><ul><ul><li>not big enough to be sold in a box </li></ul></ul></ul><ul><ul><ul><li>too ...
Willingness-to-pay Problem with flat pricing models:  How can we meet the WTP
Let’s sell in-game artefacts!
Virtual goods Microtransactions
 
Differences in main b.models Degree of integration between game and biz design Revenue model Service design emphasis Marke...
 
 
<ul><li>You… </li></ul><ul><li>Amass in-game wealth </li></ul><ul><li>Make new friends </li></ul><ul><li>Generate content ...
 
 
 
 
You are locked in, literally <ul><li>Lock-in:  You are too deep into the game </li></ul><ul><li>Loss aversion:  You don’t ...
<ul><li>Tempting to make players end up in jail more frequently -> $$$ </li></ul>
 
<ul><li>Not especially fun… </li></ul><ul><li>Not fair for non-paying users? </li></ul>
Dilemma #1: How to balance between: <ul><li>Aggressive marketing VS Fun </li></ul><ul><li>Monetization VS Retention </li><...
 
 
OH NO!! MUDFLATION! – ECONOMIC CRISIS
Faucet -> Sink <ul><li>Sink stuff out </li></ul><ul><ul><li>Decay </li></ul></ul><ul><ul><li>Consumables </li></ul></ul><u...
Dilemma #2: How to balance between: <ul><li>Paying customers still wanting to get their money’s worth </li></ul><ul><li>No...
Evening out the playfield between paying and non-paying customers <ul><li>Separated games for spenders and non-spender </l...
<ul><li>Abstracting functions of items (KartRider) </li></ul><ul><li>Not selling performance related items </li></ul><ul><...
Thank you
References: <ul><li>Pictures: </li></ul><ul><ul><li>Slides 3-20 - by Mark Strozier:  http://www.flickr.com/photos/r80o/set...
Upcoming SlideShare
Loading in …5
×

Game Design as Marketing: Business/Game Developer's Dilemma

7,350 views

Published on

A brieft presentation given at Games-As-Service (GAS) seminar

  • Be the first to comment

Game Design as Marketing: Business/Game Developer's Dilemma

  1. Game design as marketing: Business/game developer’s dilemma Juho Hamari @ GAS Seminar 2.3.2010
  2. Juho Hamari – M. Sc. (Econ) Researcher @ HIIT Information System Science / eBusiness Scope: Business models related to selling virtual goods
  3. <ul><li>Our game is </li></ul><ul><ul><ul><li>not big enough to be sold in a box </li></ul></ul></ul><ul><ul><ul><li>too big to be sold in a box </li></ul></ul></ul><ul><li>What then is our business model? </li></ul>15cm 10cm
  4. Willingness-to-pay Problem with flat pricing models: How can we meet the WTP
  5. Let’s sell in-game artefacts!
  6. Virtual goods Microtransactions
  7.  
  8. Differences in main b.models Degree of integration between game and biz design Revenue model Service design emphasis Marketing emphasis Pricing Customer relationship emphasis Retail Large amount of initial content Advertising Single price Acquisition Subscription Long-term engagement of users Time-based Retention “ free-to-play” / Virtual good sales Monetisation through incentivising service design Creating demand via game mechanics Microtransactions - emphasis on meeting the willingness-to-spend by price discriminating Acquisition, retention, monetisation
  9.  
  10.  
  11. <ul><li>You… </li></ul><ul><li>Amass in-game wealth </li></ul><ul><li>Make new friends </li></ul><ul><li>Generate content </li></ul><ul><li>Keep coming back everyday? </li></ul>
  12.  
  13.  
  14.  
  15.  
  16. You are locked in, literally <ul><li>Lock-in: You are too deep into the game </li></ul><ul><li>Loss aversion: You don’t want to loose your hard earned stuff </li></ul><ul><li>You don’t want to be left behind… </li></ul><ul><li>… you pay up. </li></ul>
  17. <ul><li>Tempting to make players end up in jail more frequently -> $$$ </li></ul>
  18.  
  19. <ul><li>Not especially fun… </li></ul><ul><li>Not fair for non-paying users? </li></ul>
  20. Dilemma #1: How to balance between: <ul><li>Aggressive marketing VS Fun </li></ul><ul><li>Monetization VS Retention </li></ul><ul><li>Selling stuff VS balancing the in-game (virtual) economy </li></ul><ul><ul><li>No silverbullet – monitor, adjust, iterate to maximise both </li></ul></ul>
  21.  
  22.  
  23. OH NO!! MUDFLATION! – ECONOMIC CRISIS
  24. Faucet -> Sink <ul><li>Sink stuff out </li></ul><ul><ul><li>Decay </li></ul></ul><ul><ul><li>Consumables </li></ul></ul><ul><ul><li>Repair costs </li></ul></ul><ul><ul><li>Etc </li></ul></ul><ul><ul><li>Not fun either? </li></ul></ul>
  25. Dilemma #2: How to balance between: <ul><li>Paying customers still wanting to get their money’s worth </li></ul><ul><li>Non-paying customers still wanting to fare in the game </li></ul>
  26. Evening out the playfield between paying and non-paying customers <ul><li>Separated games for spenders and non-spender </li></ul><ul><ul><li>Matchmaking </li></ul></ul><ul><ul><li>Separated servers (ZT Online) </li></ul></ul><ul><li>Get things a lot easier, only a bit later (monetising early adaptors and novelty value) </li></ul><ul><li>Make it easier for losers (No one cares if noobs get a bit helped) </li></ul><ul><li>Enabling trade between earned and bought content </li></ul>
  27. <ul><li>Abstracting functions of items (KartRider) </li></ul><ul><li>Not selling performance related items </li></ul><ul><ul><li>Selling functionality (convenience) – makes the gamplay easier and less time consuming </li></ul></ul><ul><ul><li>Selling only aesthetic items </li></ul></ul>
  28. Thank you
  29. References: <ul><li>Pictures: </li></ul><ul><ul><li>Slides 3-20 - by Mark Strozier: http://www.flickr.com/photos/r80o/sets/40318/ </li></ul></ul><ul><ul><li>Slide 21 – by twenty_questions: http://www.flickr.com/photos/twenty_questions/2888453842/ </li></ul></ul><ul><ul><li>Slide 22 – by mellyjean: http://www.flickr.com/photos/mellyjean/3200035895/ </li></ul></ul><ul><ul><li>Slide 23-25 – by alles-schlumpf: http://www.flickr.com/photos/29487767@N02/3288942594 </li></ul></ul><ul><ul><li>Slide 27: Wikipedia commons </li></ul></ul>

×