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Online games economics: how to make your game more profitabl

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Vasiliy Sabirov

on 8 August 2017

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Transcript of Online games economics: how to make your game more profitabl

Online games economics:
how to make your game more profitable

Key metrics
Money flows:
earnings (E);
accumulation (A);
spends (S).
Virtual Economy
I don't know any economic law from the real life which could not work in online world.
Virtual Worlds are capable of buying/selling an infinite number of goods at any price
Vasiliy Sabirov | lead analyst
Eyjólfur Guðmundsson,
Doctor of Economics, CCP Games
When you observe the world where there are 60 thousands players playing simultaneously and total number of players is close to 500 thousands, it becomes more than just and experiment and simulator. You have the whole Universe.
The more detailed the analysis is - the better. Analyze by levels, by dates, by currencies etc.
A / (A+S+E)
Sales analysis
Market basket of consumer goods
$10'000 -> $100'000 -> $1'000'000 -> $2'147'483'647
Currency amount per user;
Real currency rate = Currency earned ($) / Currency Charged (virtual)
Fact price of market basket;
Price of one hour of playing.

Currency Packages
Lifehack: the power of free
People like swipe;
Give your players an opportunity to get everything for free;
Be open-handed and share with players (currency, content, news);
Long retention: give your players an opportunity to be with you as long as they want.
Lifehack: first payment effect
First payment -> Second Payment;
Targeted offers;
Let your player to spend the first dollar;
Teach your players to buy;
Everybody pays: money, time or virality.
Lifehack: whales
Let your players spend at least $100;
Swrve: in mobile f2p-games only 0,15% of players bring 50% of game revenue;
Quantity discounts on huge checks.
Lifehack: fast engagement
Let your players to come for a minute and leave for an hours;
Let your players to feel the progress (especially in the beginning);
Starbucks test;
Create different game cycles with different length.
Lifehack: long retention
Game as a service: game has its own life;
Game should not end;
There are no losers in f2p;
Sell the speedups;
Tune the energy mechanics.
Lifehack: irrational value assessment
Lifehack: dominated alternatives
Step 1
Online version of magazine ($56)
Online + paper versions ($125)
Step 2
Online version ($56)
Online + paper versions ($125)
Paper version ($125)
Lifehack: choise paralysis
Your questions
Premium currency gifts to new players:

give nothing or on very special occasions;
give for every action.

What is better in long term?
Your questions
One currency or several currencies?
One currency:

hard to balance;
less predictable;

user can get everything w/out money;
the idea is clear to user;
it makes the game closer to audience.
Your questions
To let users skip the level by hard currency - is it good or bad and how to analyze it?

Online Resources:

Eric Seufert
Edward Castronova
Vili Lehdonvirta
Eyjolfur "Eyjo" Guðmundsson

Freemium Economics (Eric Seufert)
Virtual Economies: Design and Analysis (Vili Lehdonvirta,Edward Castronova)
Free-to-Play: Making Money From Games You Give Away (Will Luton)
Real economics in virtual worlds: A massively multiplayer online game case study, runescape (Tanla E. Bilir.)

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