Game Monetization
Classic Model• Build console or PC game, sell it at retail• Development required huge teams with huge  budgets• Had to obt...
New Model• Digital downloads eliminating need for retail  in PC market• Mobile and Facebook changed barrier to entry  dras...
Temple Run Development TeamKeith Shepherd and Natalia Luckyanova
Platforms
Steam
Facebook
Console
Mobile
Monetization Strategies
Lots of Money!
Over $50m revenue last year
Puzzles and Dragons Revenue•   $280m last year•   $92m last month•   Averages over $2m per day•   99% of revenue is from J...
Free vs Paid
Paid• User pays up front• Potential revenue is limited to number of  downloads• Works better for established franchises or...
How Does Free Make Money?• Ads• In App Purchases
Ads•   Intrusive to gameplay experience•   Difficult to implement successfully•   Market dominated by Google owned Admob• ...
In App Purchases• What to sell in game?
More Content• Upgrade to full game• More levels  – Time consuming for developer
Power Ups• More powerful items• Free passes through difficult levels  – Many players disapprove of “pay to win” items
Cosmetic Items• New avatars• Novelty items• No effect on gameplay  – Generally accepted form of IAP
Restriction Mechanics• Purchase items that allow the player to play  more often• Requires addicting gameplay  – Many playe...
Fast Tracking Progress• Booster items that speed up progression  through game• Game should start out fast and  rewarding, ...
Freemium• Free to play• Offers in app purchases (IAPs) to produce  revenue• Potentially much more lucrative than paid  games
• Relies on user engagement and social  mechanics to drive long term revenue• Revenue is not tied to number of  downloads,...
Core Loop• Central gameplay mechanic that user  performs over and over again to progress
Currency• Soft currency is earned in game, allows player  to progress slowly• Premium currency is purchased with real  mon...
Make It Social• Add incentives for players to involve friends• Cooperating should be mutually beneficial
Clash of Clans• Current #1 grossing game in the US store• Estimated revenue of over $50m last year
Market Considerations• Which platform to target?• Which genre to develop?• Which monetization strategy for which  platform...
Market Research Resources•   Inside Social Games•   App Data•   Pocket Gamer•   App Annie
InsideSocialGames.com
AppData.com
Pocketgamer.co.uk
AppAnnie.com
That’s It!
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  • Introduce topic
  • Game monetization

    1. 1. Game Monetization
    2. 2. Classic Model• Build console or PC game, sell it at retail• Development required huge teams with huge budgets• Had to obtain expensive dev kit hardware from Sega, Nintento, etc.
    3. 3. New Model• Digital downloads eliminating need for retail in PC market• Mobile and Facebook changed barrier to entry drastically• Very inexpensive to develop
    4. 4. Temple Run Development TeamKeith Shepherd and Natalia Luckyanova
    5. 5. Platforms
    6. 6. Steam
    7. 7. Facebook
    8. 8. Console
    9. 9. Mobile
    10. 10. Monetization Strategies
    11. 11. Lots of Money!
    12. 12. Over $50m revenue last year
    13. 13. Puzzles and Dragons Revenue• $280m last year• $92m last month• Averages over $2m per day• 99% of revenue is from Japan
    14. 14. Free vs Paid
    15. 15. Paid• User pays up front• Potential revenue is limited to number of downloads• Works better for established franchises or brands• Can also include in app purchases
    16. 16. How Does Free Make Money?• Ads• In App Purchases
    17. 17. Ads• Intrusive to gameplay experience• Difficult to implement successfully• Market dominated by Google owned Admob• Generates decent revenue
    18. 18. In App Purchases• What to sell in game?
    19. 19. More Content• Upgrade to full game• More levels – Time consuming for developer
    20. 20. Power Ups• More powerful items• Free passes through difficult levels – Many players disapprove of “pay to win” items
    21. 21. Cosmetic Items• New avatars• Novelty items• No effect on gameplay – Generally accepted form of IAP
    22. 22. Restriction Mechanics• Purchase items that allow the player to play more often• Requires addicting gameplay – Many players reject this form of gameplay – If successful, extremely lucrative
    23. 23. Fast Tracking Progress• Booster items that speed up progression through game• Game should start out fast and rewarding, then slow progress dramatically, enticing players to purchase items that get them progressing quickly again
    24. 24. Freemium• Free to play• Offers in app purchases (IAPs) to produce revenue• Potentially much more lucrative than paid games
    25. 25. • Relies on user engagement and social mechanics to drive long term revenue• Revenue is not tied to number of downloads, each user can make many purchases
    26. 26. Core Loop• Central gameplay mechanic that user performs over and over again to progress
    27. 27. Currency• Soft currency is earned in game, allows player to progress slowly• Premium currency is purchased with real money, allows player to greatly speed up progression
    28. 28. Make It Social• Add incentives for players to involve friends• Cooperating should be mutually beneficial
    29. 29. Clash of Clans• Current #1 grossing game in the US store• Estimated revenue of over $50m last year
    30. 30. Market Considerations• Which platform to target?• Which genre to develop?• Which monetization strategy for which platform and genre?
    31. 31. Market Research Resources• Inside Social Games• App Data• Pocket Gamer• App Annie
    32. 32. InsideSocialGames.com
    33. 33. AppData.com
    34. 34. Pocketgamer.co.uk
    35. 35. AppAnnie.com
    36. 36. That’s It!

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