The Power of Free-To-Play
-
Upload
adrian-crook -
Category
Business
-
view
6.863 -
download
2
description
Transcript of The Power of Free-To-Play
The Power of
Free To Play
Adrian [email protected]
www.FreeToPlay.biz
“Free” In the Real World
Free To Poop
No cost to public or taxpayersProviders recover costs/profit via ads on exterior
Free To Rock
Download only launch
Free / Name Your Price
40% conversion
$3M revenue
Still debuted at #1
Free To Fly
Nearly free, 5€ flights across EuropeAirline derives revenue from cargo, incidentals, etc
Back to games…
What is Free To Play?
NOT a genre NOT a platform
Numerous revenue models Players play without paying Increased player base allows for
alternate monetization
KartRider
160M users world-wide
Runescape
$60M annual revenue
Webkinz
7M unique users per month340% growth in 1 year
Club Penguin
Bought by Disney for $700M
All Eyes On FreeThe Battle for Attention
NPD: 91% of kids PC Online gaming = f2p
Current F2P Revenue Models
Virtual Item Sales
Unlimited ARPU – users decide ceiling Value drivers
Rarity/price Visibility
Dual currency systems Attention-based Real money-based
Basics 5-10% conversion rate Functional, decorative, consumeable, etc
Merchandise
Barbie Girls 9.5M users in 9 months
Webkinz $20M retail in 24 months
Maple Story CCG
Information Sale
Food Fight Surveys for Vcash
Potential 36K users daily Avg 2 surveys/user 25c per survey $18K/day ANNUAL: $6.6M
Other Revenue Models
Advertising Banners, PPC, Video, Sponsored Items
Auctions/Player Trades Live Gamer, Entropia, Station Exchange
Subscription Tiers RuneScape, Club Penguin, DR
Event/Tournament Fees Shot Online (Golf), Ultimate Baseball
Real Estate/Land Use Fees SL, Entropia
Affiliate TrialPay, $uperRewards
Donations Kingdom of Loathing
More on www.freetoplay.biz
Looking Forward…
F2P Design Tips
Respect the free players! Support integrated graphics Be browser-based (or small dl) Offer regional payment systems Provide short compulsion loops Defer user sign up
F2P Growth Challenges
Virtual property Linden v Bragg
Slow broadband 6mbps US vs 45mbps Korea
Rising dev costs Battlefield Heroes
F2P Growth Challenges
Second Life slowdown Electric Sheep layoffs; UX issues
Secondary markets IGE; unsanctioned item sales
Kids-only games NPD: After 18, kids leave F2P
F2P Trends & Opps
New F2P platforms: social networks, iPhone $upercash, EA Blueprint
Breaking down the walled garden model Metaplace, WoW Armory, DR Char AP
NPD top sellers as F2P games “We’re looking at the sort of game that five, six or
seven years ago, they would have been putting in a box and selling on retail shelves. With the new technology, we can deliver this through the browser.” – Mark Faulkner, Jagex
Adrian [email protected]
www.FreeToPlay.biz