Prisoner’s Dilemma Game with an External Selecting Agent: A Metacontingency Experiment 1
Game Design as Marketing: Business/Game Developer's Dilemma
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Transcript of Game Design as Marketing: Business/Game Developer's Dilemma
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Game design as marketing:Business/game developer’s dilemma
Juho Hamari@
GAS Seminar2.3.2010
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Juho Hamari – M. Sc. (Econ)Researcher @ HIITInformation System Science / eBusiness
Scope: Business models related to selling virtual goods
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• Our game is • not big enough to be sold in a box• too big to be sold in a box
• What then is our business model?
15cm
10cm
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Willingness-to-pay
Problem with flat pricing models: How can we meet the WTP
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Let’s sell in-game artefacts!
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Virtual goods
Microtransactions
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Differences in main b.modelsRevenue
model
Service
design
emphasis
Marketing
emphasis
Pricing Customer
relationship
emphasis
Retail Large amount
of initial
content
Advertising Single price Acquisition
Subscription Long-term
engagement of
users
Time-based Retention
“free-to-play” /
Virtual good
sales
Monetisation
through
incentivising
service design
Creating
demand via
game
mechanics
Microtransactio
ns - emphasis
on meeting the
willingness-to-
spend by price
discriminating
Acquisition,
retention,
monetisation
Deg
ree
of inte
grat
ion b
etw
een g
ame
and b
iz d
esig
n
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You…
- Amass in-game wealth- Make new friends- Generate content- Keep coming back everyday?
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You are locked in, literally
• Lock-in: You are too deep into the game
• Loss aversion: You don’t want to loose your hard earned stuff
• You don’t want to be left behind…
… you pay up.
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• Tempting to make players end up in jail more frequently -> $$$
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• Not especially fun…• Not fair for non-paying users?
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Dilemma #1: How to balance between:
• Aggressive marketing VS Fun• Monetization VS Retention• Selling stuff VS balancing the in-game
(virtual) economy
– No silverbullet – monitor, adjust, iterate to maximise both
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OH NO!!MUDFLATION! – ECONOMIC CRISIS
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Faucet -> Sink
• Sink stuff out– Decay– Consumables– Repair costs– Etc
– Not fun either?
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Dilemma #2: How to balance between:
• Paying customers still wanting to get their money’s worth
• Non-paying customers still wanting to fare in the game
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Evening out the playfield between paying and non-paying
customers
• Separated games for spenders and non-spender– Matchmaking– Separated servers (ZT Online)
• Get things a lot easier, only a bit later (monetising early adaptors and novelty value)
• Make it easier for losers (No one cares if noobs get a bit helped)
• Enabling trade between earned and bought content
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• Abstracting functions of items (KartRider)• Not selling performance related items
– Selling functionality (convenience) – makes the gamplay easier and less time consuming
– Selling only aesthetic items
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Thank you
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References:
• Pictures:– Slides 3-20 - by Mark Strozier:
http://www.flickr.com/photos/r80o/sets/40318/– Slide 21 – by twenty_questions:
http://www.flickr.com/photos/twenty_questions/2888453842/– Slide 22 – by mellyjean:
http://www.flickr.com/photos/mellyjean/3200035895/– Slide 23-25 – by alles-schlumpf:
http://www.flickr.com/photos/29487767@N02/3288942594– Slide 27: Wikipedia commons