Monetisation in the Game
industry
by
Budi Handoko, CEO of MOL Australia
6th
July 2013
What is Monetization?
Different Game Monetization Models
Great Grandfather
Console
Grandfather
PC / MAC Game
Father
MMO v1.0
MMO v2.0
Kids
Socia...
Virtual currency (or in-game currency depending on environment) is used to
purchase virtual goods within a variety of onli...
Types of Virtual Currency (Buy / Earn)
What is Virtual Currency
What is Virtual Currency
Types of Virtual Currency
-For Recreation and Entertainment purpose.
-Not for necessities purpose.
-Game characters normally do not “need” to eat to...
To Buy Virtual Items
• Typical spending type:
– Special Weapons / Transports
– Special Recipe for Crafting
– Level Up Fast...
So what do people use Virtual currency for?
What is Virtual Currency Used For
How People Pay for Virtual Currency
How People Pay for Virtual Currency
How People Pay for Virtual Currency
How People Pay for Virtual Currency
Why is the growth higher on the right hand side of the pie?
• Most of them are free, o...
How People Pay for Virtual Currency
People are choosing to pay for Free-2-Play Games
How Virtual Currency Monetise Games
How Virtual Currency Monetise Games
Different platforms game developers use to monetise their games
How Virtual Currency Monetise Games
The Great Grandfather: Console
- XBOX Microsoft Points
- Play Station Network
- Ninten...
How Virtual Currency Monetise Games
The Grandfather: PC Game / MAC
- Steam Wallet
- BattleNet Wallet
- Download Games
How Virtual Currency Monetise Games
The Father: MMO Version 1
- Sample Games: World of Warcraft, Eve Online
- Subscription...
How Virtual Currency Monetise Games
The Kids: MMO Version 2
- F2P game
- Example:
- SWOTR
- Age of Conan
- Maple Story
- L...
How Virtual Currency Monetise Games
The Kids: Social Games
- Play at Social Network. Need involvement from friends to get ...
How Virtual Currency Monetise Games
The Kids: Web Games
- Play using your browser, and not hosted on Social Network
- Exam...
How Virtual Currency Monetise Games
The Kids: Mobile Games
- Game hosted on your mobile, be it from iTunes AppStore or And...
How Virtual Currency Monetise Games
When people spend on virtual goods in Games
Plan for Your Game
Today’s Gaming Market and Its Worth
Online gaming is expected to grow at 24.2% during 2011-2015….
- In ...
Plan for Your Game
Study the Trend and Go Global!
Final Thoughts
• Understand the importance of virtual currency
• Study market trends to know who are the new players
• Dev...
Monetisation in the Game industry
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Monetisation in the Game industry

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Presentation for Computer Games Boot Camp 2013 in Monash University.

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  • Level Up Buy in Game items
  •   F2P games have encouraged millions of people to play games who would not typically consider themselves gamers, and many current gamers are trying out titles they may otherwise have overlooked. Although games can be finished without spending any hard currency, it is typically possible to enhance the experience by purchasing items through microtransactions. If players chose to make a purchase in a free-to-play game, in reality it means the barrier to payment has not been removed, but simply moved from up-front to in-game.
  • Monetisation in the Game industry

    1. 1. Monetisation in the Game industry by Budi Handoko, CEO of MOL Australia 6th July 2013
    2. 2. What is Monetization?
    3. 3. Different Game Monetization Models Great Grandfather Console Grandfather PC / MAC Game Father MMO v1.0 MMO v2.0 Kids Social Games Web Games Mobile Games Elixir of Life External and Internal Virtual Currency
    4. 4. Virtual currency (or in-game currency depending on environment) is used to purchase virtual goods within a variety of online communities. What is Virtual Currency
    5. 5. Types of Virtual Currency (Buy / Earn) What is Virtual Currency
    6. 6. What is Virtual Currency Types of Virtual Currency
    7. 7. -For Recreation and Entertainment purpose. -Not for necessities purpose. -Game characters normally do not “need” to eat to survive. What is Virtual Currency Used For To Spend in Virtual Economy
    8. 8. To Buy Virtual Items • Typical spending type: – Special Weapons / Transports – Special Recipe for Crafting – Level Up Faster –Special Characters – Finish Farming Faster – Finish Making Coffee Faster – Create Special Candy – Complete a quest – Revival – Buy more Chips What is Virtual Currency Used For
    9. 9. So what do people use Virtual currency for? What is Virtual Currency Used For
    10. 10. How People Pay for Virtual Currency
    11. 11. How People Pay for Virtual Currency
    12. 12. How People Pay for Virtual Currency
    13. 13. How People Pay for Virtual Currency Why is the growth higher on the right hand side of the pie? • Most of them are free, or cheap • People are more likely to try to play • Free2Play is the key concept • Examples of game switching to Free2Play (and become successful): • STOWR (Double revenue) • AoC (Double revenue) • LoTRO (Triple revenue)
    14. 14. How People Pay for Virtual Currency People are choosing to pay for Free-2-Play Games
    15. 15. How Virtual Currency Monetise Games
    16. 16. How Virtual Currency Monetise Games Different platforms game developers use to monetise their games
    17. 17. How Virtual Currency Monetise Games The Great Grandfather: Console - XBOX Microsoft Points - Play Station Network - Nintendo Points - Buy Games - Get special items for game upon - Buy in-game items, like Songs
    18. 18. How Virtual Currency Monetise Games The Grandfather: PC Game / MAC - Steam Wallet - BattleNet Wallet - Download Games
    19. 19. How Virtual Currency Monetise Games The Father: MMO Version 1 - Sample Games: World of Warcraft, Eve Online - Subscription based games - Use Virtual Currency to buy Subscription Code, as well as “Gold”, the virtual currency that we normally get from game play.
    20. 20. How Virtual Currency Monetise Games The Kids: MMO Version 2 - F2P game - Example: - SWOTR - Age of Conan - Maple Story - League of Legends - Heroes of Newerth - DOTA2 - Use Virtual Currency to buy characters, in-game items, special enhancements through In-Game currency. Normally there are two kind of In-Game Currency. One is the one that we collect in game-play, and another type is the one that we can buy with real money.
    21. 21. How Virtual Currency Monetise Games The Kids: Social Games - Play at Social Network. Need involvement from friends to get better - Example: - Candy Crush Saga - Farmville - Anything that annoys you on Facebook Notification - Use Virtual Currency to finish a process faster, to buy special items to buy goods, to complete a quest, to give a gift to friends
    22. 22. How Virtual Currency Monetise Games The Kids: Web Games - Play using your browser, and not hosted on Social Network - Example: - Sudden Attack from Netmarble - DDT (Boombz) - Divosaga - Games from BigPoint - Use Virtual Currency to finish a process faster, to buy special items to buy goods, to complete a quest
    23. 23. How Virtual Currency Monetise Games The Kids: Mobile Games - Game hosted on your mobile, be it from iTunes AppStore or Android - Example: - Candy Crush Saga - Use Virtual Currency to make In-App purchase
    24. 24. How Virtual Currency Monetise Games When people spend on virtual goods in Games
    25. 25. Plan for Your Game Today’s Gaming Market and Its Worth Online gaming is expected to grow at 24.2% during 2011-2015…. - In 2011, Global Market Share outlook: a. Box Game: 60% b. Console: 24% c. Online Games: 16% - In 2015, Global Market Share outlook: a. Box Game: 50% b. Console: 25% c. Online Games: 25% - Shift of business model from Subscription to Freemium (From Father to Kids No 1)
    26. 26. Plan for Your Game Study the Trend and Go Global!
    27. 27. Final Thoughts • Understand the importance of virtual currency • Study market trends to know who are the new players • Developers need to ensure that their chosen payment methods are tailored to each region in order to capture maximum revenue • There is money to be made in games, just watch how people like to spend their money

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