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 selling virtual goods

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 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

OH NO!! MUDFLATION! – ECONOMIC CRISIS

Thank you