1. How to make money and thrive in anenvironment where Free is the normal price Nicholas Lovell GAMESbrief Futurebook December 5th, 2011

2. Nicholas Lovell, GAMESbrief Author, How to Publish a Game Director, GAMESbrief Clients include Atari, Channel 4, Channelflip, Firefly, IPC, nDreams, Rebellion and Square Enix @nicholaslovell / @gamesbrief

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4. WHAT IS PUBLISHING?

5. Mythbuster: Publishing is about content Books 10% 90%Newspapers 15% 85% Games $50m $200m Publishers add value through DISTRIBUTION

6. Publishers add value used to add valuethrough distribution

7. Publishers add value used to add valuethrough distribution

8. Publishers add value used to add valuethrough distribution

9. The Internet has made distribution easy

10. Great news for content creators Content distributors, not so much Ballpark, I estimate 50% of people in content distribution will be out of work over the next decade BUT many more content creators will be able to make a living from producing and distributing their own content

11. Show me the money

12. The price/demand curve In an era of physicalPRICE distribution, you need to set a single price For games, around $40 Its great value, Id have paid much more Thats too expensive for me Demand

13. Now we let users set the price Hypothesis: Allow users to choose howPRICE much they spend on your product, and your revenues will go up DDO revenues up 500% DCUO revenues up 700% $ 3$ $ 5$ 5$ $ $10 MMO 1 $ 5 $3 $ $ $ subscription 3 3 3 1 5 Demand

14. WRONG!

15. Allowing users to choose how little to payis not the secret We all knew that 95% of users played forPRICE free We now know that 80-90% of revenues come from 0.5% of users Spending $50 - $10,000 or more Demand Paying: 5% Free: 95% 80-90% of revenue from 0.5% of users

16. The Nine Inch Nails Example Ghosts I IV Ultra Deluxe Edition: $300PRICE Ghosts I IV Deluxe Edition: $75 Ghosts I IV physical: $10 Ghosts I IV digital: $5 Ghosts I: $0 Demand

17. The conclusion

18. One-size-fits-all pricing is deadPRICE Revenue opportunity Marketing opportunity Demand

19. Thank younicholas@gamesbrief.com Follow my blog www.gamesbrief.com Buy my books