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Surviving Free-to-Play
for Small & Early-Stage
Start-Ups


Margaret Wallace
CEO, Playmatics
Margaret Wallace
●   Entrepreneur
●   Advisor
●   Connector
Production   Business
IFP will partner with other…technology
companies, including …Playmatics….
Opening July 2013
Start-Up Advisors….
Today’s Topics
●   (Informal) Survey of Industry Insiders
Today’s Topics
●   (Informal) Survey of Industry Insiders
●   Advice on Best Practices
Today’s Topics
●   (Informal) Survey of Industry Insiders
●   Advice on Best Practices
●   Biggest Mistakes
Today’s Topics
●   (Informal) Survey of Industry Insiders
●   Advice on Best Practices
●   Biggest Mistakes
●   “Pivoting” vs. Adaptation
Survey Insights
Development

             Marketing and promotion


                User acquisition


                      GAAS

                Multiplatform

…and a Hosting / server fees
       caveat
Special Thank You:
Derrick Morton       Seth Sivak
CEO                  CEO
Advice
* Omar Abdelwahed
Senior Online Producer at
2K Sports
Winning Formula?
Advice in pseudo code:
Winning Formula?
Advice in pseudo code:

If
Winning Formula?
Advice in pseudo code:

If (cost_per_user
Winning Formula?
Advice in pseudo code:

If (cost_per_user >
Winning Formula?
Advice in pseudo code:

If (cost_per_user >
avg_revenue_per_user)
Winning Formula?
Advice in pseudo code:

If (cost_per_user >
avg_revenue_per_user)
sell_or_quit();

                         * If you can.
Winning Formula?
Advice in pseudo code:

If (cost_per_user >
avg_revenue_per_user)
sell_or_quit();

                         * If you can.
What Does It
Take These Days
to Be Successful
in the Free-To-
Play Gaming
Space?
What Does it Take
to Be Successful?
“You need to constantly iterate on
that service even after it launches …

…constantly trying to acquire users
for a cost that is below their lifetime
value.”
What Does it Take
to Be Successful?
“Good games. Socially connected.
Endless playability.


…Flexible price-points from $1 to
$1,000 per player.”
What Does it Take
to Be Successful?
Adequately Measuring Success
What Does it Take              Monthly Traffic
                               New Traffic
to Be Successful?              Strategic Partnerships
                               Affiliate Partnerships
Adequately Measuring Success   Search Engine Marketing
                               Viral/Word of Mouth
                               Search Engines


                               Registrations

                               Usage and Behavior
Biggest
Mistakes?
Oink!
Biggest Mistakes?
“Thinking Players will
pay to play your game
before they become
invested in the game
itself….”
Biggest Mistakes?

“You must be able to acquire customers
virally and/or through rev share deals.”
“CPI customer acquisition has gotten to the point that nobody makes
money but the ad provider.”
Biggest Mistakes?
Not Designing for the
Target Device
Biggest Mistakes?
Biggest Mistakes?
“Pivoting” vs. Adaptation
Questions?

Margaret Wallace
    margaret@playmatics.com
          @playmatics

My Rants and Raves on the Industry:
    www.margaretwallace.com

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Surviving Free-to-Play for Small & Early-Stage Start-Ups -- Game Developers Conference (GDC) 2013

Notes de l'éditeur

  1. Source: http://www.deadline.com/2012/10/ifp-to-run-the-made-in-new-york-media-center/
  2. Sourcehttp://www.wwd.com/media-news/digital/game-on-createthe-group-social-fashion-foray-6202881““We believe that taste can be cultivated and learned and we’re using game mechanics to facilitate that. That’s our unique angle. Like any life skill, having good taste in fashion is not universal, but something that can be cultivated and learned,” Wallace said. “Everyone has an opinion about fashion — and this tells you whether your taste measures up. Over time, players will be able to improve their taste, learning from these experts and others in the community.””
  3. Insight from my informal survey of industry leaders in the F2P space.
  4. High Council of Time Lords
  5. Seth Sivak’sQuote
  6. Credit for the Formula:Omar AbdelwahedSenior Online Producer at 2K Sports
  7. Credit for the Formula:Omar AbdelwahedSenior Online Producer at 2K Sports
  8. Credit for the Formula:Omar AbdelwahedSenior Online Producer at 2K Sports
  9. Credit for the Formula:Omar AbdelwahedSenior Online Producer at 2K Sports
  10. Credit for the Formula:Omar AbdelwahedSenior Online Producer at 2K Sports
  11. Credit for the Formula:Omar AbdelwahedSenior Online Producer at 2K Sports
  12. Seth Sivak’sQuote
  13. Derrick Morton Quote
  14. Derrick Morton Quote
  15. Derrick Morton Quote
  16. Derrick Morton’s Quote: Fail and move on. When you fail, admit it's a failure and move on to the next thing quickly. Don't think you can make a low performing game a hit. If a game isn't hitting benchmarks for Return Play and DAU/MAU there's a 95% chance you can't fix it. It's fundamentally not fun to play and you need to move on. IF you have good Return Rates but you're not monetizing, you may have a shot at fixing it.
  17. Seth Sivak’sQuote
  18. Derrick Morton’s Quote - First focus on making your game socially connected at it's core, then find creative ways to get your game in front of consumers either through publishers or partners.
  19. Seth Sivak’sQuote
  20. Seth Sivak’sQuote
  21. Seth Sivak’sQuote