free to play : the business model disruption in the videogames industry
TRANSCRIPT
2
- Subjective opinions.
- My point of view.
- Not the “right point of
• view”
2 Free To Play
Warning!. opinions
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- 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 ?
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- 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 )
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- 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 )
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- 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 ?
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2004 - Steam , 2006 - Xbox Live Community 29 June 2009 - Iphone
Free To Play
EVOLUTION – Market User base
!!
70 -
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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
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- 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?
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- 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”
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- Will buyers be burned out ?
- Will buyers “feel good”and keep purchasing ?
20 Free To Play
Sostenibility
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- 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
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- 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
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- “Behaviour tricks” into / out of the game
- Playing before purchasing.
25 Free To Play
Marketing : out / into the game
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- 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
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- 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
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- “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
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- Biggest “evilness nightmare”:
kids - oriented F2P payments, kids spending money themselves, unlimited spending for kids, pay-to-win.
29 Free To Play
“EVILness nightmare “
3434 Free To Play
kids - oriented F2P payments, kids spending money themselves, unlimited spending for kids, pay-to-win.