game design & business models neil harris [email protected]

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Game Design & Business Models Neil Harris [email protected]

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Game Design & Business Models

Neil [email protected]

HEROENGINE 3D ONLINE GAMES

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MY LIFE IN ONLINE GAMES

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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.

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BUSINESS MODELS I HAVE LOVED

❤Pay-by-the-minute

❤Monthly subscriptions

❤Buy the box, pay no more

❤Microtransactions

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BUSINESS MODEL IMPACTS

GAME DESIGN

AUDIENCE SIZE

DEMOGRAPHICS

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ISSUES FOR GAME DESIGNERS

TIME VS MONEY

REVENUE VS FAIRNESS

ADVANCEMENT SPEED VS CONTENT PRODUCTION

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BUY THE BOX AND PLAY FOR FREE

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ONE-TIME PURCHASE ADVANTAGES

LOWEST SERVER COST

FITS STRENGTHS OF PUBLISHERS

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ONE-TIME PURCHASE DRAWBACKS

• No Recurring Revenue: Frequent Expansions & DLC

• Heavy Focus on PvP = VERY Hard Core

• P2P = Instanced = Hacking/Cheating

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WHY I LOVED PAY-BY-THE-MINUTE

More Fun = More Time

More Time= More Money

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PAY BY THE MINUTE

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$60ARPU!

BAD GAME MECHANICS TO MAKE MONEY

Increase Travel Distances

Slow Healing

Training Separate from Combat

Punish Players

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#1 DESIGN CHEAT IN ONLINE GAMES

BY SLOWING PLAYER PROGRESS

DESIGNERS WORK LESS HARD

TIME BECOMES LESS FUN

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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

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PREMIUM SUBSCRIPTIONS

GEMSTONE INCREASED ARPU TO $27

– PREMIUM SUBSCRIPTION AT $40/MONTH (35% of audience)

– SPECIAL EVENT TICKETS (up to $100 each)

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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

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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

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MAXIMIZE REVENUE & FUN IN FREE-TO-PLAYA 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

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CONJOINT SURVEY EXAMPLE

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CONJOINT METHODOLOGY

• CHOOSE ATTRIBUTES–Damage, XP, Specials, Speed…

•DEFINE ITEMS AS COMBINATION OF ATTRIBUTES–Sword, 5 DPS, Fire Spell, etc–Attributes can include appearance

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SEGMENT PLAYER AUDIENCE

PER BARTLE:

– ACHIEVERS

– EXPLORERS

– SOCIALIZERS

– KILLERS

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MATCH ATTRIBUTE VALUES TO SEGMENTS

BEAUTY DAMAGE SPEED TOTALVALUE

ACHIEVERS $4 $3 $2 $9

EXPLORERS $2 $4 $5 $11

SOCIALIZERS $5 $2 $1 $8

KILLERS $1 $5 $4 $10

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HEROENGINE 3D ONLINE GAMES

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[email protected]

Game Design & Business Models

Neil [email protected]