101 $$$ - Game business models lecture - Ludicious Conference
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This document provides an overview of the game industry and business models from 1997 to 2014 based on the experiences of Andre Bernhardt. It begins with an introduction and agenda, then discusses the transition from retail to online/mobile games. Various business models are reviewed over the years including free-to-play, microtransactions, and alternative models. Emerging trends and platforms are also highlighted. The document concludes by emphasizing the importance of choosing the right business model for indie developers.
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101 $$$ - Game business models lecture - Ludicious Conference
- 1. $$$ 101 André Bernhardt 19.09.14 Use more twitter: @Indie_advisor - #ludiciousfest
- 2. What to expect today? • Short introduction of myself (and yourself) • View into the past • Look at today • Going indie • Business models breakdown • Outlook into the future • Questions
- 3. 1997 Jan Okt 1998 Jul 2000 Apr 2002 Jan 2004 Okt 2005 Jul 2007 Apr 2009 Jan 2011 2012/13 1/8/2004 1/1/1997 Retail business: PC / console Retail 14 Online/ Mobile Games F2P/ Digital Who am I
- 5. 2008
- 6. „A happy hour at Seafight generates 50.000 € cash 2008 immediately.“
- 8. Wintersports DS by 49 Games/ RTL Games
- 9. „Random DS“ title ˜ 150 k € Development ˜ 200 k € Cost of goods ˜ 60 k € estimated net revenue = ˜ 350 k € Risk Vs. 50 k € risk for a browsergame
- 10. [Buchtipp] Chris Anderson: Free - http://amzn.to/XjGQVq The Long Tail - http://amzn.to/XjHPoy
- 11. 2009
- 12. […] 2010
- 15. Free-to-play a cure-all? • Free-to-play is hard work • No fire and forget • Live-Team, support, etc. necessary.. • Marketing – CPA, CPI, CPL, WTF, etc. • Many more problems.. • Many things regarding f2p are complicated & s*ck
- 17. Once: „The perfect world “ Pitch B2B Sell-in Sell-through Publishing B2C
- 18. Today: CHAOS
- 20. 2012
- 26. Megagon Industries - ….and then it rained
- 29. • Retail (Assassins Creed X, CoD X, etc.) • Digital Distribution (Steam) • In-Game Advertising (Fifa) • Advertgames (Americas Army) • “Try Before you Buy” / Trialware / Shareware, • Episodic Entertainment (Telltale), • Skill-Based Progressive Jackpots (Poker), • Subscription Model (WoW) • Micro-Transactions (Travian, etc.), • Sponsored Games / Donationware (serious games, games for good, charity games), • Pay per play / Pay as you go / Pay for Time, • Player to Player trading of Virtual Items (Steam Trading), • Sell Access to your Players (like lead generation, special offers etc.), • Freeware (get lots of users), • Loss Leader (focus on your real goal), • Peripheral Enticement (Skylanders), • Player to Player Wagering (GameDuell), • User Generated Content (letting users make endless new content), • Pay for service (Storage, Private server, Cloud stats: CoD Elite, Minecraft Realms), • Rental, • Merchandise (Angry Birds), • Pre-Sell the Game to the Players (Prison Architect, Minecraft). Overview of (actual) business models
- 31. Mobile Games Monetization Report http://bit.ly/1t7cqlq
- 32. „I am not looking into content but into communities…“ „I don´t look at anything that isn´t at least free-to-play or unconventional at the monetisation part.“ http://www.twitch.tv/gamesbeat/c/5133597
- 33. [Buchtipp] „Business Model Generation“ http://amzn.to/XKPrSB
- 42. Takeaway • Choose the ocean you want to swim in • If you want to be a successful self-publishing Indie developer don´t just think about making a great game ( but thats still a prerequesite) • Rethink your business model • Follow me on twitter ;)
- 43. Thx for your attention! Questions? @Indie_advisor andre@indieadvisor.de de.linkedin.com/in/andrebernhardt/ All Book recommendations: http://bit.ly/14zdgkb
Hinweis der Redaktion
- - So thats when i really started to spend soem time with alternative business models and read some books about it where i guess you know some of them…. E.g. free from
- ….und dann bin ich nahc München gezogen, auch erstmal dieses Free-2-play zu machen!
- Es war eine schöne Zeit, aber ein cleverer Mann hat das schon 2010 festgestellt, dass das nicht ewigo s weitergehen wird..Auszug aus seiner Keynote 2010 in Offenbach…beim BGF 2010 Thas a pictrue from the BGF 2010 – there was a lecture by Prof.. Richard bartle from the university of esse x called: , „The garden of unearthly delights“ Everybody should know him as one of the pioneers in online gaming for his work on one of the first online games called MUD in 1978 Here is a quote…. It is just a short part of the slides and i dont agree that free2play necessarily teaches players to hate f2p but one thing is right: The golden age has ended. All of the companies i mentionend before made a lot of money and everyone grew to companies with more than hundred employess now the face a bit struggle but that is nothing unusual in the history of Videogames
- We could discuss wether browsergames and f2p is/ are virtual worlds are really a technology but I guess we cannot discuss about the fact that browsergames will be a part of the future games industry…. We just have to discuss wether every publisher will manage the threads and survive? The reasons point to yes – there are several threads that face the community at the moment – just to name a few…. 1 Ppl got rid of the viral spam that happenend and ured them to invite mor epople… 4 Ppl got sick of the games itself – maybe skinner box gameplay wasnt that fuinny at all – that is what bartle meant before- it is not only happening in social games but in competitive strategy games as well 6 no progress without paying and leave as soon as they discover that – this is the thing that bartle ment – lol is a bad example in this case btw.. G1 more competitors entered the market. 8 without viral and more competition CPA skyrocektetd 7 Qulalitywise there are even more competitiors entering the market whcih leads rising devleopment costs. G2 then there is the mobile threat – smarthphones are a disrputive technology which leads to real problems if ur games are not availablte there…even if this are old numbers 12 same goes for tablests..look at the numbers 1 skinner box gameplay and/ or the f2p gamplay and the viral mechnanisms behind it.. // some even got rid of the heavy exploitation of the monetisation – no progress without paying and leave as soon as they discover that – this is the thing that bartle ment Lot of competitors enter the market – their is more choice for players to choose while there were few high quality products 5 years ago…AAA <3 F2P Ubisoft/ Ea/ Crytek just to mention a few Players get rid of virale mechanisms to get more players into the game so -> Marketing costs skyrocket -> Mobile threads the market the platform -> Smartphone Tablets http://mashable.com/2011/03/23/mobile-by-the-numbers-infogrpahic/
- Zweites Problem – Akquisekosten – Folie von Stryking! Thas a pictrue from the BGF 2010 – there was a lecture by Dr. Richard bartle called: , „The garden of unearthly delights“ Everybody should know him as one of the pioneers in online gaming for his work on one of the first online games called MUD in 1978 Here is a quote…. It is just a short part of the slides and i dont agree that free2play necessarily teaches players to hate f2p but one thing is right: The golden age has ended. All of the companies i mentionend before made a lot of money and everyone grew to companies with more than hundred employess now the face a bit struggle but that is nothing unusual in the history of Videogames
- Es war eine schöne Zeit und F2P Kein Allheilmittel, ich habe das drei Jahre gemacht und viele mit Travian gelaunchte Spiele haben trotz F2P nicht funktioniert…….wie sah es parallel in der klassischen Welt aus..
- So everything is difficult at the moment – so what to do now? There is no patent remedy that i could offer..but i can give u few things you could think about it after the Browsergamesforum…. Or if you have already..congrats..u are on the right path. First thing you have done ist to think about mobile: it is disruptive so you have to! You must port ur titles to mobile but here it is as well: First come first serve and they are already there. Think about what makes your game great and what could work on mobile? U could also name supercell – playa games or cabam…. What you can learn from those fast movers is that u should think about the next platforms by yourself: Did you think about smart TVs already? What is your plan for HTML5? Augmented reality/ Google glasses? Did you think about what happens after the free2play business already? Did u think about crowdsourcing already? What can u learn from the success of Kickstarter? Dont build your business to last forever – focus on change…. http://www.inmobi.com/inmobiblog/files/2012/02/Global_MediaConsumption_Info_Feb22.png
- When I grew up the value chain in the industry looked like this: So sah die Wertschöpfungskette in der Zeit aus , in der ich groß geworden So sah die Welt eins aus im Modell. Wir haben den Entwickler, der pitcht an den Publisher. Der sucht seinen Distributor, der verteilt an die Retailer.
- Chaos - alles hat sich verändert…. Plötzlich werden Konsumenten zu Prosumenten und entwickeln Spiele oder Teile von Spielen, UGC, Mods Entwickler verkaufen unfertiges Spiele direkt an Interessenten. Entwickler entwickeln auf eigene Kosten und suchen sich nur einen digitalen Distributor. Distributoren gehen nicht mehr über Retail – sondern konzentrieren sich auf Direktvermarktung. Retailer bleibt nur der Handel mit Wozu brauchen wir jetzt noch Publisher? Das möchte ich nachher mit Euch ausarbeiten.
- Ich habe zwar keine Glaskugel, aber zumindest einen Magic Eight ball und den habe ich damals befragt und nach meiner Zukunft beschieden…das ich zumindest nicht beim Publisher bleiben mag…
- Discoverability – User aqkucisiotn Thatgamescompany – the makers of joúrney Hawken – the mech game
- Wer sich damit längerfristig auseinandersetzen will, dem hilft es nicht sich die Sachen dritter anzuschauen, sondern der muss selber aktiv werden…. Ok – ich will der Zeit nicht mehr hinter her laufen und habe mich intensiv mit Geschäftsmodellen auseinander gesetzt. Ein sehr hilfreiches Buch ist jenes hier. Das ich dann als Grundlagen für unseren Workshop heranzieh.
- Spotify for games
- Amplitude Studios – Dungeon of the endless
- Beispiel Vlambeer…
- Beispiel Vlambeer…
- Beispiel Vlambeer…
- Stryking - Optionen
- Stryking - Optionen
- If you have any questions ask me….now or later via email ..i guess i will upload the slides some day!.....