free to play : the business model disruption in the videogames industry

35
@diegobez http://mistralsocialgames.com FREE TO PLAY Free To Play

Upload: diego-bezares

Post on 14-Jul-2015

503 views

Category:

Software


1 download

TRANSCRIPT

@diegobez http://mistralsocialgames.com

FREE TO PLAY

Free To Play

2

- Subjective opinions.

- My point of view.

- Not the “right point of

• view”

2 Free To Play

Warning!. opinions

3

- Different def initions available. A semantc discussion.

- Freemium / Free-To-Play

- Fuzzy def inition differences.

- I personally choose a USEFULL def inition for me.

How do we call a just-advertising model ? payed apps + inapp purchases ?

Free To Play

Whats F2P ?

4

- Play for free. free ? European comission july 2014 � Apple uses “get” instead of “free”

- Core game is free. The most important content C.Crush Saga: '70% of the people on the last level haven't paid anything'

- You can spend anything from 0$ to >1.000$ No limited LTV ( life time value )

- “Freeloaders” ( non-payers ) are important : They add value ( social and/or community content ), prescriptors

Free To Play

Whats F2P ? ( in my opinion )

5

- Shareware / Demo Pay to unlock core contentl

- Subscriptión ( limited L.T.V )

- Maximum payment of 5$ Limiting the LTV ( life time value )

- Forcing non-payers to exit the gameForzar Frocing choosing betwwen “pay or stop playing”. Fun and meaningfull for non-payers.

Free To Play

Whats NOT F2P ? ( in my opinió n )

6

- Extended digital distribution of games.

- Digital products tend to 0$ pricing.( the market will tend towards pricing the product at it's marginal cost )

- Autopubish � No pricing control � No Monopoly ( launching slots decided by platforms, etc ... ) .

- Needs high user bases.

Free To Play

EVOLUTION. WHY NOW ?

7

2004 - Steam , 2006 - Xbox Live Community 29 June 2009 - Iphone

Free To Play

EVOLUTION – Market User base

!!

70 -

8

Distribución digital masiva de juegos

- 2004 � Steam- - 29 June 2009 � Iphone

Free To Play

2009 – 2011 Prices drop towards 0.99 $

“Angry birds”, Rovio business model : licencing

9 Free To Play

2011 – F2P rises

10 Free To Play

EVOLUTION

1111 Free To Play

Free to play. new

1212 Free To Play

I'll never … play / develop F2P ?

13 Free To Play

Highest grossing games of 2013

14 Free To Play

4 gaming superbowl ads (2015)

1515 Free To Play

Free to play. spreadsheet

Gamesbrief.com excell

?

1616 Free To Play

Free to play. spreadsheet

Gamesbrief.com excell

1717 Free To Play

Free to play. spreadsheet

Gamesbrief.com excell

18

- Content that doesn´t affect the gameplay ( customization )

- “Accelerators”.

* C.Crush lifes. * CSR Racing express delivery * Soft currency - virtual coins.

- Exclusive content * Pay to win * Exclusive content ( similarly balanced to free items ) * Hard Currency ( diamonds, etc ... )

18 Free To Play

FREE to play – What to sell?

19

- Sometimes, extra friction is added to purchase removal. ( waitings, express deliveries, repetitive or annoying tasks ) .

- Doesn´t f it well to every game design.

- What about narrative games ?

- Biggest problem I.M.O

19 Free To Play

DOESn't “fit it all”

20

- Will buyers be burned out ?

- Will buyers “feel good”and keep purchasing ?

20 Free To Play

Sostenibility

21

- Being able to spend thousands $ in a game. Ethicals & addiction.

- 50% revenues come from 0.15% of players

- Not whales, just hobby enthusiasts : http://developers.kongregate.com/blog/dont-call-them-whales-f2p-spenders-and-virtual-value

21 Free To Play

Payments distribution

22

- High user bases needed

- Big market

- Small niches ?

22 Free To Play

Volume

23

- No 60$ paywall. - Broad access to “high quality” cultural content.

23 Free To Play

24

- Tradicional marketing done “outside the game”. Sells throught external channels. Sells before playing the game.

- Free To Play : marketing also INTO the game

24 Free To Play

Marketing : out / into the game

25

- “Behaviour tricks” into / out of the game

- Playing before purchasing.

25 Free To Play

Marketing : out / into the game

26

- Premium : priority on sales ( before playing ).

- Free To Play : Priority on retention, monetization, ingame metrics.

- Sales into the game � priority into the game

26 Free To Play

product focus

27

- Games as a service VS “Publish only once”

Big change ( business model, technical priorities, etc … )Continuous releases, development doesn´t end at “publishing”, but “begins”.

27 Free To Play

Games as a service

28

- “Free To Play is evil”

- Many Devs don't want to develop F2P

- Hardcore-Gamers anti-free-to-play

- Flipper anti Free To Play

28 Free To Play

EVIL

29

- Biggest “evilness nightmare”:

kids - oriented F2P payments, kids spending money themselves, unlimited spending for kids, pay-to-win.

29 Free To Play

“EVILness nightmare “

30

- Flipper anti Free To Play

30 Free To Play

The good old times

3131 Free To Play

Our best gaming times

3232 Free To Play

When beating that final boss used to mean...

3333 Free To Play

Asking for money to our parents

3434 Free To Play

kids - oriented F2P payments, kids spending money themselves, unlimited spending for kids, pay-to-win.

3535 Free To Play

FREE TO PLAY

@diegobez http://www.mistralsocialgames.com

- “When we say that any past time was better, we condemn our future without knowing it” Francisco de Quevedo