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The Business of Mobile Gaming
Y2la Games
By: Micky Mouse
Mobile Gaming Market
Biggest market of our generation; fastest growing consumer technology ever
Micky Mouse
Game history
1970 >> games industry has been growing exponentially .
1982 >> games industry has been growing to 8 billion USD .
1995 >> to 22 billion USD .
Current Size around 36 Billion USD .
Micky Mouse
Why going into mobile gaming business ?
Low entry barrier
Very large market
High purchasing power buyer
Micky Mouse
Information come from ::
Interviews
Questionaires
Events
Internet
Micky Mouse
Types of game company
Game as ServiceGame as Product
Ongoing game
Key success measure is not units sold
but from active users and conversion
rates.
Marketing: Focus on acquiring users
and converting them to paying
customers
Finance: Can generate revenue on
an unfinished game but require
substantial marketing cost
“Fire and forget” games that are
complete when they launch
No ongoing relationship with gamer
Marketing: Big launch; Majority of
sales
in first month (as one time purchase)
Finance: Require sufficient resources
to develop 100% of the game and
market it before seeing any revenue
Micky Mouse
Rules for Free-to-Play Games
Rule 1: Make it Fun Rule 9: Make it possible to spend $100
Rule 2: The Starbucks test Rule 10: Have pizzazz, not polish
Rule 3: Come for a minute, stay for an hour Rule 11: Kill the tutorial
Rule 4: Complexity in layers Rule 12: I must not fail (No Game over)
Rule 5: The importance of never ending Rule 13: Sell emotion, not content
Rule 6: Be generous Rule 14: Experiment and learn
Rule 7: Be Free-to-Play forever Rule 15: Game development never ends
Rule 8: The no-brainer first dollar
Micky Mouse
Revenue channel
Game content revenue
Automated advertisement
Other revenue source
1. Real, physical product advertisement within the game (e.g. Coca-Cola drinks in game)
2. Selling original sound track (OST) in the games on iTunes
3. Selling merchandise (dolls, t-shirts) of characters in hit titles
Micky Mouse
Business Plan
Marketing Plan ::
Product
Price
Place
Promotion
Operation Plan ::
Cumulative phase
Startup phase
RISK AND ASSUMPTIONS
Micky Mouse
Stolen Ideas
Game’s idea stolen when using crowd funding services ::
Some entrepreneur worry that posting unfinished ideas on crowd
funding website could exposed a great idea to a potential thief.
In order to have the project successfully crowd funded.
the important thing is not the idea, but the execution of the project
Micky Mouse
MOBILE GAME INDUSTRY ANALYSIS
Five forces analysis of mobile gaming industry
Micky Mouse
Mobile Gaming Market
Micky Mouse
Mobile Gaming Explosion
Micky Mouse
Game Design and Mechanics:
What Makes a Good Mobile Game?
Game Design and Mechanics
Games tell a story :
What is the setting?
Who is the hero?
What are the hero's desires?
Cues :
Visual
Audio
Dynamic
Micky Mouse
Addicting Game Components
Make the game easy and fun
Lots of short levels
More content they can unlock
Depth- building up from a simple to difficult game play
Micky Mouse
6 Key Steps To A Successful App
Micky Mouse
Growth of the Gadget
Micky Mouse
Monetization
Micky Mouse
Why Pay ?
Expanded features and capabilities
(77 percent)
Remove ads (44 percent)
Trial expired (35 percent)
To support the developer (22 percent)
Curiosity (16 percent)
Micky Mouse
Mobile Ad Frameworks
Google AdSense
Millennial Media
iAd
AdMob
Brightroll
Greystripe
InMobi
Jumptap
MdotMSAY
Media
ZestADZ
“Freemium”
Free To Play. Costs to unlock additional content
Apple, Android and Amazon all Keep 30%
Barnes and Noble most likely will do the same
Micky Mouse
Subscription
Similar to Freemium which uses and In-App
Purchase
Apple, Android and Amazon all Keep 30%
Micky Mouse
Production
Production phase Goal
the goal is to get the game up and running as quickly
as possible in one form or another; this is a key
component to solving unseen design issues. In an ideal
situation .
the goal is to have a working build of the game
functions every week or two; this means that the
product as a whole is constantly being prototyped .
Micky Mouse
Distribution
Distribution
iOS Apps Must go into the App store .
Amazon and Kindle Apps must go into
their respective stores .
Google Apps can be distributed a number of
different ways including Email, posting on
website and several distribution
channels.
Distribution Channels include:
Amazon, GetJar, AppBrain, Appsfire
Micky Mouse
Acquisition
Acquisition Options ::
Viral/Social effects
All about game design and product
App Store optimization
Optimize for search results, name, icon, screenshots
Mobile advertising
Buy from everywhere and measure
PR
Give a story rather than press release
Micky Mouse
Engagement
Engagement
Engagement
Basics (core mechanics, progression, etc)
Constant Balancing
Regular Content Updates
Player interaction
Re-engagement
Micky Mouse
Retention
How to measure ?
Usage pattern: session behavior
Retention: short-term, lifetime retention
Feature engagement: % of users interacting with a feature
Change from plain volume to Regularity;
not just “fire and forget” but ongoing
Micky Mouse
Engagement & Retention
Micky Mouse
The Rise of Freemium
Worldwide distribution platform – unprecedented
There is always a FREE alternative
Easiest way to get scale
Once you have users, multiple ways to monetize instead of a single, up-front transaction
Micro-transactions
Advertising
Usage Behavior
Paid apps model only for true IP innovation
Micky Mouse
Questions
Micky Mouse

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Mobile games

  • 1. The Business of Mobile Gaming Y2la Games By: Micky Mouse
  • 2. Mobile Gaming Market Biggest market of our generation; fastest growing consumer technology ever Micky Mouse
  • 3. Game history 1970 >> games industry has been growing exponentially . 1982 >> games industry has been growing to 8 billion USD . 1995 >> to 22 billion USD . Current Size around 36 Billion USD . Micky Mouse
  • 4. Why going into mobile gaming business ? Low entry barrier Very large market High purchasing power buyer Micky Mouse
  • 5. Information come from :: Interviews Questionaires Events Internet Micky Mouse
  • 6. Types of game company Game as ServiceGame as Product Ongoing game Key success measure is not units sold but from active users and conversion rates. Marketing: Focus on acquiring users and converting them to paying customers Finance: Can generate revenue on an unfinished game but require substantial marketing cost “Fire and forget” games that are complete when they launch No ongoing relationship with gamer Marketing: Big launch; Majority of sales in first month (as one time purchase) Finance: Require sufficient resources to develop 100% of the game and market it before seeing any revenue Micky Mouse
  • 7. Rules for Free-to-Play Games Rule 1: Make it Fun Rule 9: Make it possible to spend $100 Rule 2: The Starbucks test Rule 10: Have pizzazz, not polish Rule 3: Come for a minute, stay for an hour Rule 11: Kill the tutorial Rule 4: Complexity in layers Rule 12: I must not fail (No Game over) Rule 5: The importance of never ending Rule 13: Sell emotion, not content Rule 6: Be generous Rule 14: Experiment and learn Rule 7: Be Free-to-Play forever Rule 15: Game development never ends Rule 8: The no-brainer first dollar Micky Mouse
  • 8. Revenue channel Game content revenue Automated advertisement Other revenue source 1. Real, physical product advertisement within the game (e.g. Coca-Cola drinks in game) 2. Selling original sound track (OST) in the games on iTunes 3. Selling merchandise (dolls, t-shirts) of characters in hit titles Micky Mouse
  • 9. Business Plan Marketing Plan :: Product Price Place Promotion Operation Plan :: Cumulative phase Startup phase RISK AND ASSUMPTIONS Micky Mouse
  • 10. Stolen Ideas Game’s idea stolen when using crowd funding services :: Some entrepreneur worry that posting unfinished ideas on crowd funding website could exposed a great idea to a potential thief. In order to have the project successfully crowd funded. the important thing is not the idea, but the execution of the project Micky Mouse
  • 11. MOBILE GAME INDUSTRY ANALYSIS Five forces analysis of mobile gaming industry Micky Mouse
  • 14. Game Design and Mechanics: What Makes a Good Mobile Game?
  • 15. Game Design and Mechanics Games tell a story : What is the setting? Who is the hero? What are the hero's desires? Cues : Visual Audio Dynamic Micky Mouse
  • 16. Addicting Game Components Make the game easy and fun Lots of short levels More content they can unlock Depth- building up from a simple to difficult game play Micky Mouse
  • 17. 6 Key Steps To A Successful App Micky Mouse
  • 18. Growth of the Gadget Micky Mouse
  • 20.
  • 22. Why Pay ? Expanded features and capabilities (77 percent) Remove ads (44 percent) Trial expired (35 percent) To support the developer (22 percent) Curiosity (16 percent) Micky Mouse
  • 23. Mobile Ad Frameworks Google AdSense Millennial Media iAd AdMob Brightroll Greystripe InMobi Jumptap MdotMSAY Media ZestADZ
  • 24. “Freemium” Free To Play. Costs to unlock additional content Apple, Android and Amazon all Keep 30% Barnes and Noble most likely will do the same Micky Mouse
  • 25. Subscription Similar to Freemium which uses and In-App Purchase Apple, Android and Amazon all Keep 30% Micky Mouse
  • 27. Production phase Goal the goal is to get the game up and running as quickly as possible in one form or another; this is a key component to solving unseen design issues. In an ideal situation . the goal is to have a working build of the game functions every week or two; this means that the product as a whole is constantly being prototyped . Micky Mouse
  • 29. Distribution iOS Apps Must go into the App store . Amazon and Kindle Apps must go into their respective stores . Google Apps can be distributed a number of different ways including Email, posting on website and several distribution channels. Distribution Channels include: Amazon, GetJar, AppBrain, Appsfire Micky Mouse
  • 31. Acquisition Options :: Viral/Social effects All about game design and product App Store optimization Optimize for search results, name, icon, screenshots Mobile advertising Buy from everywhere and measure PR Give a story rather than press release Micky Mouse
  • 33. Engagement Engagement Basics (core mechanics, progression, etc) Constant Balancing Regular Content Updates Player interaction Re-engagement Micky Mouse
  • 35. How to measure ? Usage pattern: session behavior Retention: short-term, lifetime retention Feature engagement: % of users interacting with a feature Change from plain volume to Regularity; not just “fire and forget” but ongoing Micky Mouse
  • 37. The Rise of Freemium Worldwide distribution platform – unprecedented There is always a FREE alternative Easiest way to get scale Once you have users, multiple ways to monetize instead of a single, up-front transaction Micro-transactions Advertising Usage Behavior Paid apps model only for true IP innovation Micky Mouse