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Game monetization
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- 2. Classic Model • Buildconsole 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.
- 9. New Model • Digitaldownloads eliminating need for retail in PC market • Mobile and Facebook changed barrier to entry drastically • Very inexpensive to develop
- 11. Temple Run DevelopmentTeam Keith Shepherd and Natalia Luckyanova
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- 22. Over $50m revenuelast year
- 25. Puzzles and DragonsRevenue • $280m last year • $92m last month • Averages over $2m per day • 99% of revenue is from Japan
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- 27. Paid • User paysup front • Potential revenue is limited to number of downloads • Works better for established franchises or brands • Can also include in app purchases
- 33. How Does FreeMake Money? • Ads • In App Purchases
- 34. Ads • Intrusive to gameplay experience • Difficult to implement successfully • Market dominated by Google owned Admob • Generates decent revenue
- 36. In App Purchases •What to sell in game?
- 37. More Content • Upgradeto full game • More levels – Time consuming for developer
- 38. Power Ups • Morepowerful items • Free passes through difficult levels – Many players disapprove of “pay to win” items
- 41. Cosmetic Items • Newavatars • Novelty items • No effect on gameplay – Generally accepted form of IAP
- 45. Restriction Mechanics • Purchaseitems that allow the player to play more often • Requires addicting gameplay – Many players reject this form of gameplay – If successful, extremely lucrative
- 47. 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
- 48. Freemium • Free toplay • Offers in app purchases (IAPs) to produce revenue • Potentially much more lucrative than paid games
- 49. • Relies onuser engagement and social mechanics to drive long term revenue • Revenue is not tied to number of downloads, each user can make many purchases
- 50. Core Loop • Centralgameplay mechanic that user performs over and over again to progress
- 51. Currency • Soft currencyis earned in game, allows player to progress slowly • Premium currency is purchased with real money, allows player to greatly speed up progression
- 54. Make It Social •Add incentives for players to involve friends • Cooperating should be mutually beneficial
- 58. Clash of Clans •Current #1 grossing game in the US store • Estimated revenue of over $50m last year
- 82. Market Considerations • Whichplatform to target? • Which genre to develop? • Which monetization strategy for which platform and genre?
- 84. Market Research Resources • Inside Social Games • App Data • Pocket Gamer • App Annie
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Editor's Notes
- #2 Introduce topic