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How Much Money Do Free-To-Play MMOs Make?

simoniker writes "Over at Gamasutra, a new feature article discusses how much money free-to-play MMO games make, with specific real-world stats from game developers willing to discuss how they make money with microtransaction-based PC games. In particular, Puzzle Pirates co-creator Daniel James reveals that 'the average revenue per user (ARPU) is between one and two dollars a month, but only about 10% of his player base has ever paid him anything. As a result, he says, approximately 5,000 gamers are generating the $230,000 in revenue he sees each month.' It's obviously quite a different model from the regular $15/month for World Of Warcraft, but it evidently works for some companies."

13 of 157 comments (clear)

  1. If you advertise it as free by Xaoswolf · · Score: 4, Interesting

    most people are going to play it like it's free, as in, not paying for anything. You'll still have a minority that will help to boost the sales by paying a whole lot more than they should for in game items. Likewise, I have never played a free MMO that didn't have someone running around the home city just shouting out advertisements.

  2. Re:bad math by Knave75 · · Score: 4, Informative

    if the average user gives an average of 1-2 dollars per month, how can 5000 users generate 230,000 dollars?

    I believe that the average per user is $1-2 per month.

    However, the average per paying user was something along the lines of $50. So the math would go something like:

    ($50/paying user)(5000 users) = $250,000

    or

    ($1.50/user)(160,000 users) = $240,000

  3. Re:Dear free MMO companies by Mprx · · Score: 5, Informative

    Puzzle Pirates is written in cross platform Java. Works on every major OS.

  4. Wait What? How Bad is My Math... by greymond · · Score: 4, Informative

    "(ARPU) is between one and two dollars a month, but only about 10% of his player base has ever paid him anything. As a result, he says, approximately 5,000 gamers are generating the $230,000 in revenue"

    So 10% of the player base is paying him and that player base equals 5,000 people. So there are 50,000 people a month playing - nice.

    But wait a sec...ARPU is only $2 on the top end and 5,000 people pay this, so that's $10,000 a month - where is the other $220,000 coming from!!!!! Even if all 50k people were spending $2 a month that's be $100k - Where did I miss something?

    OH I GET IT NOW - From the actual article....
    "Indeed, James reveals that Three Rings' MMO Puzzle Pirates takes in approximately $50 each month from each paying user (ARPPU) for a total of $230,000 a month, all resulting from microtransactions."

    This is different than what the blurb mentioned - I guess it did get me to read, but only this time - you're tactics won't always work on me!

    1. Re:Wait What? How Bad is My Math... by Anonymous Coward · · Score: 5, Informative

      And if I add apples and oranges, I can eliminate the national debt as long as I remember to divide by zero!

      10% of the player base is paying him

      No, 10% of the player base has ever paid him. Some other % (presumably smaller) is the 5000 players paying monthly.

      ARPU is only $2 on the top end and 5,000 people pay this, so that's $10,000 a month

      No, the average is over all of the players, so thats (total players)*$2 a month.

  5. Re:Dear free MMO companies by Anonymous Coward · · Score: 5, Insightful

    None.
    We sit in Starbucks all over the nation, sipping our latte all day long, waiting for the master to return.

  6. I think 6 by geekoid · · Score: 5, Funny

    is it 6? I'm guessing 6, 6 right?

    "approximately 5,000 gamers are generating the $230,000 in revenue he sees each month."

    If you knew, why the hell did you ask me?

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  7. Re:Dear free MMO companies by Capt.DrumkenBum · · Score: 5, Funny

    "ransacking the couch for ramen money" That sounds really dirty to me for some reason.
    Is that what you kids are calling it these days? In my day was just called it sex, I guess I am just old.
    Get off my lawn.

    --
    If I were God, wouldn't I protect my churches from acts of me?
  8. Re:Dear free MMO companies by Quirkz · · Score: 5, Informative

    Some of us are browser based. I play www.KingdomofLoathing.com all the time, and it's platform independent. I also run my own game at www.Twilightheroes.com.

    With just under 30k accounts, maybe 2,000 of them active in a given month, I'm not really quite "massive" yet but my own experience is that I pull in on average less than $0.50 per account per month, with some fair bit of fluctuation. I'd be jumping for joy at an average of $2/player.

  9. Re:Dear free MMO companies by Plaid+Phantom · · Score: 4, Funny

    No no: that Mac is *why* they're plundering the furniture. ;)

    --
    All comments are properties and trademarks of the voices in my head. Not like I'm gonna claim them.
  10. Re:Dear free MMO companies by Omestes · · Score: 4, Insightful

    Odd, I got a Mac in college when my PC crapped out thanks to some defective parts after $300 of upgrades. I decided I had enough of futzing with my computer, and fixing things, so I bought an iBook. With student discounts it was cheaper than most comparable Wintel laptops, and did pretty much the same stuff, and I got a free iPod with it. Sure, I couldn't game, but I had more important things to do.

    It actually served my purposes fine, and it was damn cheap. Hardly a status symbol. Hell, even if it was a status symbol it might have left my dorm room 4 times 3 years.

    Stop generalizing to justify your own selection of OS as being far superior to everyone elses. And stop deluding yourself into thinking you OS choice has anything to do with anything that actually matters. Its shallow, and obnoxious.

    And just so you don't call me a fan-boy (which is also vapid, I might add) I'm typing this on my Windows gaming rig, sitting next to my Ubuntu laptop, which is sitting next to a Mac Mini I'm fitting into a mini media center.

    --
    A patriot must always be ready to defend his country against his government. -edward abbey
  11. Re:Dear free MMO companies by Dr.+Zim · · Score: 5, Interesting

    Actually, as an openly gay mac user, I have to say I've gotten far more dick when I leave my computer at home.

    If you think your hardware choice will get you laid, I'm guessing you don't get much from either sex.

    --
    (name withheld by request)
  12. Re:Dear free MMO companies by Veggiesama · · Score: 4, Funny

    You heard it here on Slashdot first, gentlemen. Gay men aren't attracted to your operating system.

    We already knew they weren't aroused by the size of your external hard drive, but the jury's still out on whether or not you should wear an anti-virus shield when having unprotected file-sharing with another anonymous gay man. Some call this controversial practice "bare-backuping," and it remains highly controversial in online gay communities.