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Balancing Virtual Economies in free2play Games

Balancing Virtual Economies in free2play Games. KPI driven Game Design and monetization of Virtual Goods. The journey so far. Education: Game Design & 3D Art, Games Academy Work: Game Design & 3D Art, northworks Software Head of Publisher Relations, Balao / GratisPay

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Balancing Virtual Economies in free2play Games

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  1. Balancing Virtual Economies in free2play Games KPI driven Game Design and monetization of Virtual Goods

  2. The journey so far Education: Game Design & 3D Art, Games Academy Work:Game Design & 3D Art, northworks Software Head of Publisher Relations, Balao/GratisPay Producer, Bigpoint Sr. Product Manager, MondiaMedia

  3. What can be item sales? • Customization/Vanity-Items • (Rooms, pets, cloth, …) • Advantages • (Bigger cannons, better ships,…) • Features • (Instant action, comfort …) • Probabilities • (Drop rates, safety …) Everything that has a need!

  4. How to create a need (Bragging Approach) Social Needs & Bragging Rights (unique, individual, rich$ …) Instinct to Play (Let‘s have fun!) Advantages (bigger, better, faster, stronger …) Improved Experience (Winning is fun!) Drive to Collect (I want it all!) Rewards (Success, acceptance, recognition …) Balance! Also see: Maslow‘s hierarchy of needs and the concept of flow

  5. Tracking “the need” • Analysis is a key factor for success • Item specific tracking • How many are in the game? • Which sell best and when? • … • User specific tracking • What pages he visits most? • Which items does he use? • …

  6. Key Performance Indicators • What KPIs to track? • Registration to Active User • Registration to Paying User • Average Revenue per Paying User • …

  7. KPI Driver Example: Events • Main activity drivers (CCUO) • Lead to engagement and recurrence (Activity- /Login Rate) • Can be revenue driver (Consumption  Track Items) • Example: • Seasonal Event: Hunt & Loot • Aim: consumption and activity • Mechanics: • Result: users buy X1 and immediately reuse it, event engages to come back X3

  8. Balancing Methods • Time vs. Money (all Items can be achieved via playtime) • Skill vs. Money(XP booster, a core gamer still kicks ass) • Occurrence vs. Money (drop rates/probability of release) • Expiring Date vs. Money (condition can vanish / if an item is big – it has to be short lasting) • Keep it fair: • P2P Market Place (with fees you still make money/fraud!) • Pay Item Auction House (Time vs. Money) • Serve bragging rights no advantages (Trophies, statistics)

  9. Balancing Examples: Soft Monetization • Sports-game with fair-play community: • Talent cards regulated by appearance depending on their value • Occurrence -> common, uncommon, rare, ultra-rare • Your players get talent slots with rising experience • Advantages regulated by time • Probability of release for a card • Way to value a card • Every tactic has a counter tactic • Skill vs. Money • Special point budget for card use per session

  10. Balancing Example: hard monetization • Player owns biggest tank (20 €) • Tank has 10 cannon slots (each cannon 2 €) • Every cannon fires 5 rounds per minutes (0,0001€/round)  10 x 5 x 0,0001 = 0,005 €/every minute fighting

  11. Risks in free2play & Solutions • User ruins himself • Free2Play Games with virtual goods allow the user to spend unlimited amounts of money • Set up limits (daily/weekly/monthly ) • Age verification • P2P Fraud • Multi Accounting, Phishing, aso. • Take a commission fee when P2P trade is allowed • Players trade to the bank -> prices calculated by the system • Bad Experience • Losing against money lowers your gaming experience • What kind of game do you have? Do you care? • What kind of community do you have? Do they care? • Develop Items that can only be bought by Virtual-Currency • Make them short lasting & expensive, but ass-kicking  takes money out of the game • Don‘t become greedy!

  12. Test, Track, Try Again … "Learning doesn't happen from failure itself but rather from analyzing the failure, making a change, and then trying again.“ - Michael Hunter

  13. Creatives vs. Analysts Building a profitable gaming company is NOT A LOTTERY! • VCs just focus on numbers and success stories  Reputation + PPT + Excelsheet = funding • Game Developers are to self centered  Our baby  we know it best = fail Developers!: Learn your math, analyze your strategy, built a monetization design focused on market needs and challenge everyone against KPIs!

  14. Questions? Julian Huehnermann Revenue Strategist Email: julian@gizmogames.de

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