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Monetizing Free-To-Play Gaming Models

eldavojohn writes "Last week, a game consultant named David J Edery gave his two cents on why free-to-play (F2P) game models aren't as prolific in the West as they seem to be in the East. Aside from a few unprovable cultural divides, he makes some interesting claims concerning conversion rates of non-paying players to paying players. Some customers pay hundreds for functional items and only a dollar on aesthetic items while other users might be the complete opposite. He also notes that converting a non-paying newbie into a paying customer is not the same as converting a non-paying salty dog. He defines 'aggressive monetization' to mean how much money will advance you 'unfairly' in the game. He focuses on two classes of items: those that provide performance-neutral aesthetics and those that provide performance enhancing or functional advancements. He claims to have access to ARPPU ('average revenue per paying user' per month) rates among several game developers and states that 'more aggressive monetization model and a loyal, niche userbase can hope to generate $50 per paying user per month, on average,' while 'a F2P game that limits itself to flat subscription revenue and/or non-functional items is generally more likely to fall somewhere between $5 and $10 per paying user per month.' Like any good consultant, he also gives ethics a footnote in an otherwise verbose post on monetizing free to play games. Has anyone here had experience pricing items and content in free-to-play games?"

7 of 164 comments (clear)

  1. They had free-to-play in arcades when I was a kid by noidentity · · Score: 5, Funny

    When I was a kid, they had free-to-play games in the arcades. This was where you stood in front of the machine and pressed buttons while the demo played.

  2. Re:Long time lurker, first time poster. by gamricstone · · Score: 5, Funny

    Dear god I didn't realize it would remove every newline I inserted manually.

    --
    The economic anarchy of capitalist society as it exists today is, in my opinion, the real source of the evil. - Einstein
  3. Re:Anecdote by Cylix · · Score: 4, Funny

    My therapist once said I spend an overly healthy amount of cash on item transactions. To this I replied, "You are only saying that because you are a nub and wish you were as half as pro as me."

    --
    "You should always go to other people's funerals; otherwise, they won't come to yours." -- Yogi Berra
  4. Re:"Profiting from" Free-To-Play Gaming Models by Bigjeff5 · · Score: 3, Funny

    monetize
    –verb (used with object), -tized, -tizing.
    1. to legalize as money.
    2. to coin into money: to monetize gold.
    3. to give the character of money to.
    4. Economics . to convert (a debt, esp. the national debt) into currency, esp. by issuing government securities or notes.

    Also, especially British , monetise .

    Origin:
    1875–80; L mont ( a ) money + -ize

    —Related forms
    monetization, noun

    It's not a verbification, it's a legitimate word used correctly in the summary, you ignorant, misguided wannabe grammar nazi.

    --
    Security is mostly a superstition... Avoiding danger is no safer in the long run than outright exposure. - Helen Keller
  5. Re:Golf works like that by Yvan256 · · Score: 3, Funny

    They do in Canada.

  6. Re:"Profiting from" Free-To-Play Gaming Models by kervin · · Score: 2, Funny

    Look, this verbificationismness needs to stop. Let people use wordy things the way they want. Be tolerantish.

    Funny, and I actually agree. This is why I questionized my original response.

  7. Re:Anecdote by Anonymous Coward · · Score: 1, Funny

    He then handed you a bill for more than you've ever paid for games and said "Same time next week then."