Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or...
Transcript of Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or...
![Page 1: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/1.jpg)
Pricing Strategy of GamesYu Zhan
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Pay to Play
Pay for a better game(Free-to-play)
Pay to Win
Three types of pricing strategy:
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Pay to Win
![Page 4: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/4.jpg)
Pay to Win
![Page 5: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/5.jpg)
All-star Heroes
![Page 6: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/6.jpg)
Opportunities of getting new heroes (stronger or with more strategies)
All-star Heroes
![Page 7: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/7.jpg)
Opportunities of getting new heroes (stronger or with more strategies)
Better Equipments and more Golds
All-star Heroes
![Page 8: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/8.jpg)
Opportunities of getting new heroes (stronger or with more strategies)
Better Equipments and more Golds
Extra energy
All-star Heroes
![Page 9: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/9.jpg)
Opportunities of getting new heroes (stronger or with more strategies)
Better Equipments and more Golds
Extra energy
Win in PVP and rank higher
All-star Heroes
![Page 10: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/10.jpg)
Pay to Play
![Page 11: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/11.jpg)
Selling Sequels
Pay to Play
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Selling Sequels
Pay to Play
![Page 13: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/13.jpg)
Selling Sequels
Pay to Play
![Page 14: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/14.jpg)
Selling Sequels
Selling Downloadable Contents (DLCs)
Pay to Play
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Selling Sequels
Selling Downloadable Contents (DLCs)
Pay to Play
![Page 16: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/16.jpg)
Selling Sequels
Selling Downloadable Contents (DLCs)
Pay to Play
![Page 17: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/17.jpg)
Selling Sequels
Selling Downloadable Contents (DLCs)
Selling Online versions
Pay to Play
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Selling Sequels
Selling Downloadable Contents (DLCs)
Selling Online versions
Pay to Play
![Page 19: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/19.jpg)
Selling Sequels
Selling Downloadable Contents (DLCs)
Selling Online versions
Pay to Play
![Page 20: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/20.jpg)
Selling Sequels
Selling Downloadable Contents (DLCs)
Selling Online versions
World of Warcraft
Pay to Play
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Selling Sequels
Selling Downloadable Contents (DLCs)
Selling Online versions
World of Warcraft
Pay to Play
“Pay for experiences”
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Fast update strategy
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Fast update strategy
Update of storyline (DLCs and sequels)
![Page 24: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/24.jpg)
Fast update strategy
Update of storyline (DLCs and sequels)
Update of graphics (“scholar of the first sin”, sequels)
![Page 25: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/25.jpg)
Fast update strategy
Update of storyline (DLCs and sequels)
Update of graphics (“scholar of the first sin”, sequels)
Update of game play (new characters, online cooperation)
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Free-to-play (F2P)
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Free-to-play (F2P)
“refers to video games which give players access to a significant portion of their content without paying.”
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Free-to-play (F2P)
“refers to video games which give players access to a significant portion of their content without paying.”
“Freemium is a pricing strategy by which a product or service is provided free of charge, but money (premium) is charged for proprietary features, functionality, or virtual goods.”
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Free-to-play (F2P)
“refers to video games which give players access to a significant portion of their content without paying.”
“Freemium is a pricing strategy by which a product or service is provided free of charge, but money (premium) is charged for proprietary features, functionality, or virtual goods.”
![Page 30: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/30.jpg)
Pricing Strategy of DOTA2
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Pricing Strategy of DOTA2
Match Tickets
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Pricing Strategy of DOTA2
Match Tickets
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Pricing Strategy of DOTA2
Match Tickets
Workshop
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Pricing Strategy of DOTA2
Match Tickets
Workshop
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Pricing Strategy of DOTA2
Match Tickets
Workshop
“Pay for a better game”
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DOTA2 Championships as an unique update strategy
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DOTA2 Championships as an unique update strategy
Peak Players:
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DOTA2 Championships as an unique update strategy
Peak Players:
TI1 (2011 August) less than 10 thousand
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DOTA2 Championships as an unique update strategy
Peak Players:
TI1 (2011 August) less than 10 thousand
TI2 (2012 Aug & Sep) 118,724 players
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DOTA2 Championships as an unique update strategy
Peak Players:
TI1 (2011 August) less than 10 thousand
TI2 (2012 Aug & Sep) 118,724 players
TI3 (2013 August 7 to 11) 566,715 players
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DOTA2 Championships as an unique update strategy
Peak Players:
TI1 (2011 August) less than 10 thousand
TI2 (2012 Aug & Sep) 118,724 players
TI3 (2013 August 7 to 11) 566,715 players
TI4 (2014 July 8 to 21) 864,261 players
![Page 42: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/42.jpg)
DOTA2 Championships as an unique update strategy
Peak Players:
TI1 (2011 August) less than 10 thousand
TI2 (2012 Aug & Sep) 118,724 players
TI3 (2013 August 7 to 11) 566,715 players
TI4 (2014 July 8 to 21) 864,261 players
DOTA2 Asia Championship(2015 Jan 6 to Feb 9) 1,262,612 players
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Fast update strategy DOTA2 vs All-star Heroes
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Fast update strategy DOTA2 vs All-star Heroes
Dota 2
All-star Heroes
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Fast update strategy DOTA2 vs All-star Heroes
Dota 2
Update of storyline (hardly any story for MOBA game)
All-star Heroes
![Page 46: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/46.jpg)
Fast update strategy DOTA2 vs All-star Heroes
Dota 2
Update of storyline (hardly any story for MOBA game)
All-star Heroes
Update of storyline (no)
![Page 47: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/47.jpg)
Fast update strategy DOTA2 vs All-star Heroes
Dota 2
Update of storyline (hardly any story for MOBA game)
Update of graphics (workshop, vote for rebuild of heroes)
All-star Heroes
Update of storyline (no)
![Page 48: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/48.jpg)
Fast update strategy DOTA2 vs All-star Heroes
Dota 2
Update of storyline (hardly any story for MOBA game)
Update of graphics (workshop, vote for rebuild of heroes)
All-star Heroes
Update of storyline (no)
Update of graphics (hardly changed from beginning)
![Page 49: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/49.jpg)
Fast update strategy DOTA2 vs All-star Heroes
Dota 2
Update of storyline (hardly any story for MOBA game)
Update of graphics (workshop, vote for rebuild of heroes)
Update of game play (new strategies by new heroes and items, adjusting the balance)
All-star Heroes
Update of storyline (no)
Update of graphics (hardly changed from beginning)
![Page 50: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/50.jpg)
Fast update strategy DOTA2 vs All-star Heroes
Dota 2
Update of storyline (hardly any story for MOBA game)
Update of graphics (workshop, vote for rebuild of heroes)
Update of game play (new strategies by new heroes and items, adjusting the balance)
All-star Heroes
Update of storyline (no)
Update of graphics (hardly changed from beginning)
Update of game play (following dota 2, more pricing strategies involved)
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Comparison of success DOTA2 vs All-star Heroes
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Comparison of success DOTA2 vs All-star Heroes
Players:
![Page 53: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/53.jpg)
Comparison of success DOTA2 vs All-star Heroes
Players:
42,900,000 dota2 accounts (till February 2015)
![Page 54: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/54.jpg)
Comparison of success DOTA2 vs All-star Heroes
Players:
42,900,000 dota2 accounts (till February 2015)
70,000,000 accounts (till December 2014)
![Page 55: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/55.jpg)
Comparison of success DOTA2 vs All-star Heroes
Players:
42,900,000 dota2 accounts (till February 2015)
1,262,612Peak concurrent players
70,000,000 accounts (till December 2014)
![Page 56: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/56.jpg)
Comparison of success DOTA2 vs All-star Heroes
Players:
42,900,000 dota2 accounts (till February 2015)
1,262,612Peak concurrent players
10,860,520 unique players in last month
70,000,000 accounts (till December 2014)
![Page 57: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/57.jpg)
Comparison of success DOTA2 vs All-star Heroes
Players:
42,900,000 dota2 accounts (till February 2015)
1,262,612Peak concurrent players
10,860,520 unique players in last month
70,000,000 accounts (till December 2014)
3,850,000 Peak Daily Active User (DAU)
![Page 58: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/58.jpg)
Comparison of success DOTA2 vs All-star Heroes
![Page 59: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/59.jpg)
Comparison of success DOTA2 vs All-star Heroes
Revenues:
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Comparison of success DOTA2 vs All-star Heroes
Revenues:
more than 43,695,920 USD revenue for TI4(10,924,897 USD in prize pool from 4,369,592 players)
![Page 61: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/61.jpg)
Comparison of success DOTA2 vs All-star Heroes
Revenues:
more than 43,695,920 USD revenue for TI4(10,924,897 USD in prize pool from 4,369,592 players)
136 million USDrevenue of 2014 from Jan to Sep (right after ti4)
![Page 62: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/62.jpg)
Comparison of success DOTA2 vs All-star Heroes
Revenues:
more than 43,695,920 USD revenue for TI4(10,924,897 USD in prize pool from 4,369,592 players)
136 million USDrevenue of 2014 from Jan to Sep (right after ti4)
3,228,000 USDpeak revenue per day (till December 2015)
![Page 63: Pricing Strategy of Games - Computer Science · Opportunities of getting new heroes (stronger or with more strategies) Better Equipments and more Golds All-star Heroes](https://reader030.fdocuments.us/reader030/viewer/2022011809/5d5acb1d88c99330748baefa/html5/thumbnails/63.jpg)
Comparison of success DOTA2 vs All-star Heroes
Revenues:
more than 43,695,920 USD revenue for TI4(10,924,897 USD in prize pool from 4,369,592 players)
136 million USDrevenue of 2014 from Jan to Sep (right after ti4)
3,228,000 USDpeak revenue per day (till December 2015)
43,578,000 USDpeak revenue per month within China only (till December 2015)
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Influence
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Influence
<The Strategy and Tactics of Pricing>Fairness Effect – buyers are more sensitive to the price of a product when the price is outside the range they perceive as “fair” or “reasonable” given the purchase context.
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Influence
<The Strategy and Tactics of Pricing>Fairness Effect – buyers are more sensitive to the price of a product when the price is outside the range they perceive as “fair” or “reasonable” given the purchase context.
Cancer of Game Industry
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Q & A
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http://steamcharts.com/app/570#All
http://www.mcvuk.com/news/read/dota-2-surpasses-40m-players-user-activity-on-the-rise-eedar/0145920
http://venturebeat.com/2014/10/23/the-10-highest-grossing-online-pc-games-in-2014-hearthstone-dota-2-cant-compete-with-league-of-legends/
http://chanye.07073.com/shuju/1010130.html
http://games.enet.com.cn/a/2014/0714/A2014071400592862_0.shtml
Nagle, Thomas and Holden, Reed. The Strategy and Tactics of Pricing. Prentice Hall, 2002. Pages 84-104.
ReferencesDOTA2
All-star Heroes