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How Free-To-Play Is Constricting Mobile Games

An anonymous reader writes "Mobile gaming is crystallizing around one concept: games must be free-to-play. As an industry, it seems to work — there's no shortage of players willing to drop money on microtransactions and in-app purchases. But for making compelling or unusual games, this is a problem. 'Pitch a title that isn't games-as-a-service to publishers or investors and they'll practically install new doors to slam in your face. ... Free-to-play advocates naturally think their model is dominant because "that's what mobile gamers want," explaining that in-app purchases are just the players way of saying they care. If they've entertained the more dull notion that free-to-play is popular because... well, it's free? They seem not to let on. ... Recent data shows 20 percent of mobile games get opened once and never again. 66 percent have never played beyond the first 24 hours and indeed most purchases happen in the first week of play. Amazingly only around two to three percent of gamers pay anything at all for games, and even more hair-raising is the fact that 50 percent of all revenue comes from just 0.2 percent of players. This is a statistically insignificant amount of happy gamers and nothing that gives you a basis to make claims about "what people want."'"

22 of 115 comments (clear)

  1. Also by Anonymous Coward · · Score: 5, Insightful

    I would wager that most people that pay a significant amount of money towards these games aren't happy... just compulsive...

    1. Re:Also by fuzzyfuzzyfungus · · Score: 3, Insightful

      I would wager that most people that pay a significant amount of money towards these games aren't happy... just compulsive...

      And they aren't even getting comped drinks... They should put down the smartphone and head to Vegas.

  2. they aren't games, they are like slot machines by alen · · Score: 3, Insightful

    like the old Civilization and Sim City games that gave you periodic awards for overcoming obstacles. you just pay to do it faster
    same concept and lots of times same game mechanics except for the micro payments
    just like a slot machine. keep putting quarters in and once in a while you win

    Fremium just takes the tiny percentage of people with psychological issues who are prone to paying a lot of money and make A LOT of money off them

    1. Re:they aren't games, they are like slot machines by Anonymous Coward · · Score: 2, Interesting

      the business model on many of them is similar to slot machines too.

      a number of these titles will NOT let players pass levels until a certain income target has been met, until that point it will continue to give them an impossible level (just like a losing spin) while presenting them with options to buy helpers to pass it.

      because everything is tied to a central account this income can come from any one of the players so one person might buy something and the game servers will then allow another 10 people to pass the level for free by giving them better 'luck' (a winning spin)

      this works because eventually a player will become frustrated enough to buy a helper, but it also gives the illusion to the other players that it is possible to play the games and win by 'skill' without buying anything (if they have the patience to fail a level many hundreds of times) There's minimal actual skill involved with a large number of the games, you pass the key levels when the company that made the game want you to pass them. (other levels are actually skill based to help with the illusion)

      the balance is fine, but I've seen the code for some titles that were popular at one point, and this is exactly what they do.

  3. How is 'free to play' constricting? by HBI · · Score: 2, Informative

    People aren't going to pay for stuff that they don't need. Games aren't necessary. It would have to be a hell of a game on your phone to justify spending money.

    Charging money for every game would just assure that very few or none of them get played. A Chili's near me put in small touchscreen terminals that handle credit card swipes at each table. Avoids waiting for the server to bring you the bill, it's nice. They also have games on the terminal. Every one costs at least a buck. I haven't seen one get played yet.

    Creating a new economy doesn't work if no one shows up.

    --
    HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
    1. Re:How is 'free to play' constricting? by AuMatar · · Score: 5, Interesting

      First, it requires you to design a game with logical free to play elements. This restricts the nature of games that can be written.

      As for charging for games means none would be played- there's a couple of good counterexamples. Nintendo, Sega, Playstation, Xbox. All of the companies that develop for all of those.

      I've been a games since I was 5. I'm ok spending 50 or 70 dollars on a good game. I have never once paid a dime for a free to play game, and it's next to impossible to get me to download them- I know they're going to try and nickle and dime me or charge me a fortune if I don't want to slowly grind stuff out (or make it impossible to play parts of the game if I don't pay). And I'm far from the only gamer like that. So they pick up a large number of people who won't ever pay a dime while disenchanting the existing base of people who are known to play video games. That's idiotic.

      --
      I still have more fans than freaks. WTF is wrong with you people?
    2. Re:How is 'free to play' constricting? by mlts · · Score: 3, Insightful

      Usually one of three things happen with a F2P game:

      1: It is malware. When you look at the permissions and a "free" fleshlight app demands everything under the sun including su access, something isn't kosher.

      2: It is a game that is extremely grindy where you can spend hours doing repetitive tasks, or shell out $10 for some currency (brains, smurfberries, crowns) to make life easier.

      3: It comes with 1-2 characters/weapons/etc., and you have to spend a buck each if you want anything fun to play with while playing the game. Essentially like DLC in consoles.

      4: You are buying some fluff (like your vehicles with a different color) that don't change gameplay, but are a cool aesthetic.

      5: It is pretty much a demo, with a couple levels, and you buy the rest.

      Number 4 and 5 make sense. #1 won't get the game past the permissions menu, and a report. #2 or #3 will get the app tossed off the device and a one star review.

    3. Re:How is 'free to play' constricting? by mythosaz · · Score: 2

      Which one of those five things are the three things that happen with F2P games?

      Some games are fairly reasonable about this. Lets look at a few heavy hitters in the freemium space.

      Candy Crush - never demands a purchase, ever, if you allow it to use Facebook data, and asks for $0.99 for new blocks of levels if you don't. Every level is beatable without assistance. [I have three stars without money, on every level through the high 300's.]
      Simpson's Tapped Out - similarly, no pressure to ever buy anything for cash unless you're completely impatient or just have to have something. The entire game is available for free unless you want completely optional items that offer little advantage over just playing.

      I just started playing the Marvel Puzzle Quest game. Well worth the $10 I decided to give them to open the game up to a point where I could easily earn the rest through play. ...and if I hadn't liked the game, I would have never had to give them the 10.

    4. Re:How is 'free to play' constricting? by Anonymous Coward · · Score: 5, Funny

      When you look at the permissions and a "free" fleshlight app demands everything under the sun

      Tell me, where can I find this free fleshlight app?

    5. Re:How is 'free to play' constricting? by AuMatar · · Score: 2

      CandyCrush is malware, stealing your contact info and selling it to advertisers. A clear case of #1.
      Simpson's Tapped Out is 2/3. And I would never pay a dime for, or buy any product from a company that makes games where you can pay for an advantage.

      --
      I still have more fans than freaks. WTF is wrong with you people?
  4. Red Herring by Fwipp · · Score: 5, Insightful

    Sure, only 3% of your players give you money if you're free-to-play. But if 3% of players of a F2P game is more than 100% of players of a $3 game, it doesn't matter. It's like arguing "If we implement super-awesome-DRM, our piracy will go down to 1%" without an understanding that these actions may hurt total sales.

    Relative numbers are pretty useless without the bigger picture.

  5. Meh... by mythosaz · · Score: 2

    Sure, it's a problem getting a big game funded if you don't have a proven revenue model to present to your investors, but that's not unique to games.

    "Gee, I'm sure if you just fronted me the money to make this, we'd absolutely make some money back because it'll be awesome, I promise!"

    Publishers have limited resources, so they bet on what's making them money -- microtransactions.

    Plenty of good games have a fixed one-time purchase price. Nobody is stopping you from making the next Super Hexagon.

  6. I, for one welcome... by rwa2 · · Score: 3, Interesting

    ... our 0.2% benevolent overlord angel venture capitalist gamer demographic who will now guide the development of all gaming.

    Can't find the link (help me out here), but there was a recent interview with a f2p game studio that basically had a developer dedicated to keeping one particular gamer happy after this gamer had basically dropped $10k in in-game purchases.

    So does this mean trickle-down economics does work in some domains?

  7. It's a money cow. by MindPrison · · Score: 5, Informative

    Here in Sweden, free to play apps are a money cow, you can milk it endlessly. We've had stuff like that on national television, cases where kids have paid several THOUSANDS for extra features to their so called "free apps", (farm heroes saga anyone?). Now even Unreal Tournament dev. system want to go this way, free to...well...download...you figure out the rest.

    --
    What this world is coming to - is for you and me to decide.
    1. Re:It's a money cow. by Voyager529 · · Score: 3, Interesting

      Now even Unreal Tournament dev. system want to go this way, free to...well...download...you figure out the rest.

      Unreal tournament will be a very interesting case study over the next year or two, because there are a lot of different variables that don't apply to mobile gaming.

      First, a few questions regarding the market model:
      1.) Will the game be sufficiently open source that you can download the source, write in the MindPrison Content Market, and distribute the recompile? Android technically lets you do this, but short of Amazon, no market has taken hold since Google Play comes on literally every Android phone sold through carriers. Unreal Tournament is not as similarly beholden.
      2.) If it's not that free, will it be possible for modders to release their maps independently, and for players to install them without going through the market? Also different from the mobile market since every UT release ever has had this system in place; users only familiar with iOS will be confused but I see the overlap between the two markets as vanishingly small.

      Next, a few differences with the TRUE market. F2P games are, ultimately, marketing to players. Unreal Tournament makes money another way: directly through Unreal Engine 4 subscriptions and the gross revenue therefrom. $20/month per subscriber starts to add up when we add in all the modders and map makers. Similarly, the next Gears of War release will make Epic a fortune with that 5% gross revenue thing happening. Epic doesn't need to make a killing from players in order to get their hookers and blow. Unreal Tournament is a tech demo for the engine and a low-barrier-of-entry for indi developers to get started.

      Finally, the Epic Games that released Unreal Tournament 3 was pretty awesome. Why? Because despite not selling as many copies of that year's Call of Duty release, the folks over at Epic Games did release five update packs including the Titan pack (which had several modifiers, new gameplay modes, and new maps) for free, a year and a half after its release. It was also the only game I'm aware of that had a full plastic-disc release that never required an internet connection but also let players put their CD key into Steam and get all the wonderfulness of having the game on Steam. You don't see that kind of dedication from Activision and while it's been quite some time, I'd at least like to think that some of those people are still in charge of making decisions here. I'm fully aware that it's an unreasonable amount of optimism to have, but what can I say - I have hope.

  8. Multi user games by eric31415927 · · Score: 2

    I like old Avalon Hill strategy battle type games. We paid $60 each for them - and I'd buy modern computerized versions of them at the same price. Each player could use their mobile/tablet as his or her interface. Common elements (i.e. public information) could be displayed on a large TV or computer screen. Why aren't these games (re)made?

    1. Re:Multi user games by brit74 · · Score: 2

      I'd bet it's hard to break-even once you've done the work of converting them. First, almost nobody is going to pay $60 for them, like people did decades ago. The bar for computer games has been raised, and the market is full of people trying to sell games. (It's also possible that the developers of those old games created them because they liked making games, even if the pay was bad. For someone wanting to make a decent living-wage, this type of game might not be the way to go - i.e. only create them if you've got lots of interest, a day-job, and lots of free time.) Second, it's hard to find your target audience. A few years back, I had written a strategy-wargame ( http://www.empiresofsteel.com/ ) which was inspired in many ways by an old computer game called "Empire" ( http://www.classicempire.com/ ). My revenue was nowhere near paying my development costs -- I recouped about 20%.

      My publisher told me that strategy games are tough to make money on (unless you're Sid Meier, I assume). They published quite a few strategy games. They had a hard time figuring out a good way to market them that actually had a good ROI. At one point, I tried Google AdWords (because targeted advertising would work, wouldn't it?) I didn't make back the money I spent. My publisher had invested a bunch of money (a lot more than I did) promoting their games with Google AdWords, as well, because they wanted to test the targeted-advertising market. They eventually decided that they couldn't get a net-positive ROI from AdWords.

      It's just a hard market out there. I suspect the only way to really make it as an indie developer is to make something super innovative and addictive (and get really lucky on top of it).

  9. Sucky business model = sucky games by Powercntrl · · Score: 2

    The big problem with free-to-play is that all of the games tend to follow the same pattern:

    It contains an in-game currency that is difficult or impossible to earn during gameplay, so it must be purchased with real money.

    In some skill based games, levels and goals are procedurally generated, so there is no way to actually "win" the game. This includes most 3 lane running games and hunting simulators. (Minion Rush, Subway Surfers, Stampede Run, Deer Hunter Reloaded, etc.)

    In other skill based games, the levels may have actually been authored by a human, but later levels are generally designed to become impossible to beat without buying some power-ups. Plants vs Zombies 2 is a good example of this.

    In chance based games (gem/candy/jelly match games), you are basically forced into either buying power-ups to win the level, or grinding away by re-playing the same level over and over again until you finally get lucky. Except...

    Many of these games have a lives/rounds system that will only let you play a certain number of times before forcing you to choose between waiting or paying to be able to continue playing. (Candy Crush, Jelly Splash, most Zynga games, Angry Birds Go, etc.)

    Some particularly evil games will not even allow you to progress to higher levels unless you spam the game on Facebook or, you guessed it, spend money. (Candy Crush, Jelly Splash, etc.)

    The absolute worst aspect of free-to-play, though, is how it almost always directly translates to "pay-to-win". The developers rarely limit the amount of power ups you can purchase or how often they can be used, so the end result is that paying removes absolutely all challenge to the game. How is it fun to play a game where the only thing standing between you and "victory" is how wide you're willing to open your wallet?

    --

    ---
    DRM is like antifreeze, to the MPAA/RIAA it's sweet, to the consumers it's poison.
  10. Entitlements vs. consumables by tepples · · Score: 3, Informative

    You could also make a case that the new "free-to-play" games are essentially the "demos" of old, but they're just a lot sneakier about the conversion to the "paid" version.

    Most OUYA games that I've tried use a shareware model, where the user can buy the paid version as an "entitlement", a purchase that the user keeps as long as the platform remains in operation. A lot of the hated freemium games, on the other hand, tend to offer no way to pay once to unlock everything permanently. They handle all purchases as "consumables", which need to be purchased multiple times in order to keep playing.

    1. Re:Entitlements vs. consumables by Dutch+Gun · · Score: 2

      Most OUYA games that I've tried use a shareware model, where the user can buy the paid version as an "entitlement", a purchase that the user keeps as long as the platform remains in operation. A lot of the hated freemium games, on the other hand, tend to offer no way to pay once to unlock everything permanently. They handle all purchases as "consumables", which need to be purchased multiple times in order to keep playing.

      That's a very good point - the F2P definitely is much more of a "rental" model with heavy use of one-time consumables, although that's not necessarily always the case. So, maybe the "demo" analogy doesn't always apply, but that tends to happen with analogies.

      I'm not a fan of the overall model, of course, but one way in which I think it works pretty well is when the core gameplay is free, but customers can optionally spend money on more cosmetic items. Some of Valves games work this way. Guild Wars 2 is a buy-to-play, and only supplements their income with a more cosmetic-focused in-game shop, and I sort of like that balance.

      Frankly, though, what irks me most is when companies double-dip, or even triple-dip. Some MMOs would not only charge a monthly fee, but also made you purchase the box as well. Then on top of that, they started selling in-store items. Seriously? Thankfully, no one can really get away with that anymore - possibly the only positive thing I can say about the F2P trend.

      We're certainly seeing the pendulum swinging pretty wildly to the F2P model, but I'm not convinced that it's necessarily an indicator of a permanent trend in gaming. It's just that the phone market is still pretty new, so I think a lot of people are going to be suckered into these things at first. Get enough of them disgusted with the sleazy nature of it, and we could well see a backlash, but it will take some time for that to happen.

      --
      Irony: Agile development has too much intertia to be abandoned now.
  11. Amusing story. by Jane+Q.+Public · · Score: 2

    Recent data shows 20 percent of mobile games get opened once and never again.

    That's an amazing success rate, since Sturgeon's Law pretty much holds here just as it does for so many other things: 90% of them are crap.

    66 percent have never played beyond the first 24 hours and indeed most purchases happen in the first week of play.

    Most paid mobile games I've played haven't lasted more than a few days. They get played, then I move on. What's the point here? Most of them aren't, say, Checkers or Chess or Poker. You play, you figure it out or solve the secrets. You're done.

    Amazingly only around two to three percent of gamers pay anything at all for games, and even more hair-raising is the fact that 50 percent of all revenue comes from just 0.2 percent of players.

    That's because 99.8% of them figured out it's crap before they got suckered into paying. Again: what's the issue here?

    This is a statistically insignificant amount of happy gamers and nothing that gives you a basis to make claims about "what people want.

    Maybe because there wasn't a statistically significant number of games that people actually wanted.

    Recent winners in my book: The Room 2, and Catan. I paid for both, and I am glad I did. (The board game Settlers of Catan is in the home, of course, but it's nice to have a mobile version.)

    There are some other "free" games that seemed decent, but I round-filed them because they constantly pestered me for money or "social" likes or mentions, or activated "notifications" in the middle of the night, etc.

    I really don't mean to be cynical. There are some really good games out there. But with the current state of the "market", you have to wade through a lot of shit to find them.

    I think it will settle down, sooner or later.

  12. I don't see the confusion- Too much entertainment by Maxo-Texas · · Score: 2

    We have too much entertainment.

    I retired a couple years ago and I *can't keep up*. Every week, there are at least 10 hours of material more than I can watch just from TV alone. Then there are computer games, board games, and real life stuff like vacations.

    It amazes me that they are able to keep the prices up as well as they have in some areas.

    So if I have 15 entertainment options to choose from that entertain me enough and 5 of them are free- at the least- I'll do the 5 free ones first.

    It is *very* rare for anything wonderful or unique or special enough that I'm willing to pay a premium for it.

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.