New business models: how to make money giving your game away for free

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Nicholas Lovell<br />GAMESbrief<br />Edinburgh Interactive Entertainment Festival<br />August 11th 2011<br />NEW BUSINESS ...

Nicholas Lovell, GAMESbrief<br />Author, How to Publish a Game<br />Director, GAMESbrief<br />Clients include Atari, Chann...

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Free – It WORKS<br />

Free has been hugely successful<br />Zynga: <br />filed its S-1<br />$600m + in revenues<br />Valuation expected >$10bn<br...

Free is a marketing technique<br />Free means you have a lower barrier to entry <br />Free means more people try your game...

Why does free work?<br />

The price/demand curve<br />In an era of physical distribution, you need to set a single price<br />For games, around $40<...

Now we let users set the price<br />Hypothesis: Allow users to choose how much they spend on your product, and your revenu...

LOTRO and Everquest II showed a similar story</li></ul>$3<br />$5<br />$5<br />$1<br />$5<br />$3<br />$10 MMO subscriptio...

WRONG!<br />

Allowing users to choose how little to pay is not the secret<br />We all knew that 95% of users played for free<br />We no...

Find the whales<br />

An iOS example: Pocket Frogs<br />

An iOS example: Pocket Frogs<br />

Content is the hardest thing to sell<br />

It’s deeper than that<br />

People pay for status, for emotions, for feelings, for progress<br />People will pay to:<br />Fit in: “everyone else has g...

Some basic rules of free<br />

ARM yourself <br />Hoping for the best is not good enough, you need to ARM yourself<br />ACQUISITION: How do I get people ...

The rule of 0-1-100<br />Make it enjoyable for people to play for free for ever<br />Make it easy for people to spend $1<b...

Be generous<br />“Give, and it shall be given unto you” Luke 6:38<br />

You’re not making films anymore<br />

Free is flexible<br />

Are free / freemium / F2P games evil?<br />

NO<br />

F2P = evil (or not)<br />The business model is designed to take money from you<br />So is the coin-op, or the MMO, or the ...

Some valid concerns<br />How much money is it ethical to take from a single player, in a single month?<br />Are microtrans...

Morph – a thought experiment<br />Business model 1<br />Make an iPhone App<br />Offer a Lite version and a 99¢ game<br />B...

Incorporate ads for a limited edition, 1,000-only print of the original Morph, framed for your wall for $999

Conversion rate of 0.1% = same revenue (oh, no 30% to Apple)</li></li></ul><li>I love free<br />

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