CS/INFO 4154: Analytics-driven Game Design

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1 CS/INFO 4154: Analytics-driven Game Design Class 29: Who Pays for Games?

2 by 2pm: Newgrounds Release Report Mon Wed Fri 11/2 Who Pays for Games? 11/5 Pokémon GO 11/7 Minecraft? 11/9 Newgrounds Release by 10:10am: Upload Game to CMS 11/12 Newgrounds Release 2 11/14 Newgrounds Release 3 11/16 Newgrounds Release 4

3 Today How can analytics help us understand a major shift in video games?

4 The Good Old Days game company you

5 These Days base game game company you

6 League of Legends source: gameskinny.com

7 ios % of revenue (2014) 79% Source: Forbes

8 South Park Clip

9 Advantages of Freemium?

10 Disadvantages of Freemium?

11 But wait

12 Outline Discussion Revenue metrics Who pays for your games? Implications

13 Outline Discussion Revenue metrics Who pays for your games? Implications

14 5 minutes: pair discussion Is this assertion true? How could we evaluate this assertion? What information would we need? What metrics would we need? Is freemium moral?

15 Outline Discussion Revenue metrics Who pays for your games? Implications

16 Outline Discussion Revenue metrics Who pays for your games? Implications

17 Consult the expert: Emily Greer Kongregate CEO Co-founded with brother Jim Greer

18 Kongregate Virtual Currency Emily Greer, Core Games, Real Numbers, GDC 2011

19 Metric 1: % Buyers percentage of players who pay Emily Greer, Core Games, Real Numbers, GDC 2011

20 Metric 2: ARPU average revenue per user Emily Greer, Core Games, Real Numbers, GDC 2011

21 Metric 3: ARPPU average revenue per paying user Emily Greer, Core Games, Real Numbers, GDC 2011

22 Outline Discussion Revenue metrics Who pays for your games? Implications

23 Outline Discussion Revenue metrics Who pays for your games? Implications

24 Paying Users Pay Don't pay Emily Greer, Core Games, Real Numbers, GDC 2011

25 Paying Users Emily Greer, Don t Call them Whales: F2P Spenders and Virtual Value, GDC 2015

26

27

28 $500 Whales Player Distribution Revenue 10% 60% Emily Greer, Core Games, Real Numbers, GDC 2011

29 $1000 Whales Player Distribution 2% Revenue 40% Emily Greer, Core Games, Real Numbers, GDC 2011

30 The Biggest Whale $6700!!!!!!!!! Emily Greer, Core Games, Real Numbers, GDC 2011

31 Still the case Emily Greer, Don t Call them Whales: F2P Spenders and Virtual Value, GDC 2015

32 Interesting questions Do most long-term players end up spending money?

33 Most long-term players do spend $$$ Emily Greer, Don t Call them Whales: F2P Spenders and Virtual Value, GDC 2015

34 Interesting questions Do most long-term players end up spending money? What ages of people spend the most?

35 Age and spending habits Emily Greer, Don t Call them Whales: F2P Spenders and Virtual Value, GDC 2015

36 Why are these dips here? Emily Greer, Don t Call them Whales: F2P Spenders and Virtual Value, GDC 2015

37 Interesting questions Do most long-term players end up spending money? What ages of people spend the most? Does time to first purchase predict overall spending?

38 A little bit but actually not that much Days to first purchase Emily Greer, Don t Call them Whales: F2P Spenders and Virtual Value, GDC 2015

39 Outline Discussion Revenue metrics Who pays for your games? Implications

40 Outline Discussion Revenue metrics Who pays for your games? Implications

41 Strategy 1: Don t limit spending Swords & Potions ARPU: $0.50 7M players Difficult to spend > $100 Buyers: 2.9% ARPPU: $17 Business Tycoon Online ARPU: $ K players Difficult to spend < $100 Buyers: 0.7% ARPPU: $96 Emily Greer, Core Games, Real Numbers, GDC 2011

42 Example: Clicker Heroes

43 Clicker Heroes Monetization

44 Clicker Heroes ARPPU Anthony Pecorella, Idle Games: The Mechanics and Monetization of Self-Playing Games, GDC 2015

45 Clicker Heroes Metrics Anthony Pecorella, Idle Games: The Mechanics and Monetization of Self-Playing Games, GDC 2015

46 Strategy 2: Core Feedback Loop

47 Case Study: RPG vs. Multiplayer

48 Long-term players spend more Top 10 games on Kongregate Emily Greer, Building Games for the Long Term, GDC 2013

49 Player Journey Funnel aware able to access in trial returning loyal Emily Greer, Core Games, Real Numbers, GDC 2011

50 Getting players to return isn t so important Emily Greer, Core Games, Real Numbers, GDC 2011

51 but addiction is. Emily Greer, Core Games, Real Numbers, GDC 2011

52 Strategy 3: Provide New Content

53 Strategy 3: Provide New Content

54 Strategy 3: Provide New Content

55 Outline Discussion Revenue metrics Who pays for your games? Implications

56 Outline Discussion Revenue metrics Who pays for your games? Implications

57 In summary: true or false?

58 Summary Free-to-play is a big shift Shifts payment from the masses to the addicts Analytics can be applied to money, also

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