Game Design and Business Models Neil harris cce_2012
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Game Design & Business Models: Exploring the Future of Online Games by Neil HARRIS
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Game Design and Business Models Neil harris cce_2012
- 1. Game Design & Business Models Neil Harris neil@heroengine.com
- 2. HEROENGINE 3D ONLINE GAMES 2
- 3. MY LIFE IN ONLINE GAMES 3
- 4. LESSON I WISHED MY FATHER HAD TAUGHT ME NEVER FALL IN LOVE WITH YOUR BUSINESS MODEL! THEY ARE FICKLE AND WILL LEAVE YOU BROKE AND BROKEN HEARTED. 4
- 5. BUSINESS MODELS I HAVE LOVED ❤ Pay-by-the-minute ❤ Monthly subscriptions ❤ Buy the box, pay no more ❤ Microtransactions 5
- 6. BUSINESS MODEL IMPACTS GAME DESIGN AUDIENCE SIZE DEMOGRAPHICS 6
- 7. ISSUES FOR GAME DESIGNERS TIME VS MONEY REVENUE VS FAIRNESS ADVANCEMENT SPEED VS CONTENT PRODUCTION 7
- 8. BUY THE BOX AND PLAY FOR FREE 8
- 9. ONE-TIME PURCHASE ADVANTAGES LOWEST SERVER COST FITS STRENGTHS OF PUBLISHERS 9
- 10. ONE-TIME PURCHASE DRAWBACKS • No Recurring Revenue: Frequent Expansions & DLC • Heavy Focus on PvP = VERY Hard Core • P2P = Instanced = Hacking/Cheating 10
- 11. WHY I LOVED PAY-BY-THE-MINUTE More Fun = More Time More Time= More Money 11
- 12. PAY BY THE MINUTE $60 ARPU! 12
- 13. BAD GAME MECHANICS TO MAKE MONEY Increase Travel Distances Slow Healing Training Separate from Combat Punish Players 13
- 14. #1 DESIGN CHEAT IN ONLINE GAMES BY SLOWING PLAYER PROGRESS DESIGNERS WORK LESS HARD TIME BECOMES LESS FUN 14
- 15. DISADVANTAGE OF BY-THE-MINUTE HIGHEST ARPU BUT SMALLEST AUDIENCE 15
- 16. ANNUAL REVENUE POTENTIAL • BY THE MINUTE – High ARPU, Audience 1,000-50,000 • SUBSCRIPTION – ~$15 ARPU, Audience 50,000-millions • FREE-TO-PLAY MICROTRANS – <$1 ARPU, Audience potential tens of millions 16
- 17. BUSINESS MODEL IMPACT: SUBSCRIPTIONS • ARPU HAS A FLOOR AND A CEILING • No chance to benefit from “whales” • Low value for light users • HAPPIEST USERS = LOTS OF TIME 17
- 18. PREMIUM SUBSCRIPTIONS GEMSTONE INCREASED ARPU TO $27 – PREMIUM SUBSCRIPTION AT $40/MONTH (35% of audience) – SPECIAL EVENT TICKETS (up to $100 each) 18
- 19. SUBSCRIPTION GAME DESIGN ISSUES SLOW DOWN PLAYERS = GRIND HUGE WORLD = HUGE EXPANSIONS = HUGE COST PvP END-GAME (LESS CONTENT REQUIRED) WoW IS SPEEDING UP ADVANCEMENT TO BROADEN AUDIENCE 19
- 20. FREE TO PLAY + MICRO TRANSACTIONS • Huge Audience! – More Casual – Needs Low Hurdle • Balance Paid Goods with Fairness – Annoyances + Cures – Speed or Convenience – Vanity Items – New Areas / Content 20
- 21. MAXIMIZE REVENUE & FUN IN FREE-TO-PLAY A MODEST PROPOSAL WHAT IF…? YOU COULD DIVIDE YOUR PLAYERS INTO SEGMENTS AND OFFER EACH GROUP ONLY THOSE ITEMS THAT THEY VALUE MOST HIGHLY? CONJOINT ANALYSIS 21
- 22. CONJOINT SURVEY EXAMPLE 22
- 23. CONJOINT METHODOLOGY • CHOOSE ATTRIBUTES –Damage, XP, Specials, Speed… • DEFINE ITEMS AS COMBINATION OF ATTRIBUTES –Sword, 5 DPS, Fire Spell, etc –Attributes can include appearance 23
- 24. SEGMENT PLAYER AUDIENCE PER BARTLE: – ACHIEVERS – EXPLORERS – SOCIALIZERS – KILLERS 24
- 25. MATCH ATTRIBUTE VALUES TO SEGMENTS BEAUTY DAMAGE SPEED TOTAL VALUE ACHIEVERS $4 $3 $2 $9 EXPLORERS $2 $4 $5 $11 SOCIALIZERS $5 $2 $1 $8 KILLERS $1 $5 $4 $10 25
- 26. HEROENGINE 3D ONLINE GAMES neil@heroengine.com 26
- 27. Game Design & Business Models Neil Harris neil@heroengine.com