1 / 13

The Future of Monetization

The Future of Monetization. Daniel James CEO Three Rings daniel@threerings.net http://djames.org/gdc/. Premises. Ye olde crystal ball +10 Axe of Grinding Time in the Future Arrows in Back. The Ten Year Thesis. Virtual Currency FTW

amy
Download Presentation

The Future of Monetization

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Future of Monetization Daniel James CEO Three Rings daniel@threerings.net http://djames.org/gdc/

  2. Premises • Ye olde crystal ball • +10 Axe of Grinding • Time in the Future • Arrows in Back

  3. The Ten Year Thesis • Virtual Currency FTW • Mix of virtual goods, subscriptions, trading and advertising or incentives • Social multi-player component • Often massively single-player • ‘Casual Games’ == ‘Core’ == ‘Industry’ • Bye bye Television

  4. Market Today • 'Casual' means 'Not Hardcore’ • Hardcore business is scuppered • 100M+ 'Casual Gamers' • Online game plays, DS, Wii dominate the attention landscape

  5. Dead Ends • Casual Games =/ $20 Downloadbles • $20 Download is Scuppered - Flat Sales • The competition is for attention • Downloadable channel an accident • Collapsing advertising market of 2001 • Popcap accidently rediscovered shareware • Billing channel was available via trymedia etc. • Did not present user registration issues • Most portals are not execution-oriented

  6. What will we sell? • Attention • If we don’t get their time, we’ve booched it • Enhanced experiences • items, levels, enhancements • Luxury goods, status • Creativity and services of other players

  7. Revenue Models • Advertising: selling attention to corporations • Sales force • Non-standard ad units -> biz dev custom deals • Highly cyclical • Games poor for measurable CPA/CPC sales • Other methods of selling your players • Behavioural data, privacy invasion, spyware • Surveys for in-game rewards • Lead generation: sign up for Netflix etc.

  8. Revenue Models (2) • Once-off sales • Converting 1% must only be a part of the answer • Subscriptions • Presents a cliff to the casual adopter • Under monetizes the enthusiast • Microtransactions / Virtual Currency • Secondary markets: • selling player attention and luxuries • Player-created content • selling player creativity to other players

  9. Virtual Currency is the enabler • Ties into the context of your game • Naturally supports all the revenue models • Reward structure for advertising and incentive schemes • Required for secondary markets and player created stuffs • Lacks a cliff • Facilitates ongoing free experience • Efficiently monetizes at every level of usage

  10. Payment Mechanisms • Credit Card / Paypal • SMS / Phone billing • Prepaid Card • Bank transfers • International remittances • Wallet platforms e.g. Google, Facebook

  11. Challenges • Infrastructure is lacking • *Still* not available as a service • Portals *still* cannot support user registrations or billing • Building is painful • Increases complexity • Gameplay accommodates currency • Trends towards complex, rich worlds

  12. Answers! • Most Portals disintermediated • Will not dominate the landscape in five years • 'New portals' being built around these trends • Billing services and platforms mature: • Mochiads • Peanut labs • Clickandbuy, Aria • Facebook wallet, Google, Paypal, etc. • Whirled, Metaplace, Kongregate • Even the console platforms! • A flood of innovation will change the landscape

  13. Q n A

More Related