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Monetizing Free-To-Play Gaming Models

August 15th, 2010 08:30 admin Leave a comment Go to comments

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?”

Source: Monetizing Free-To-Play Gaming Models

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