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Winning Business Models
Oscar Clark EvangelistPapayaMobile Inc
Back to basics?
•General decline in Video Game Sales
•Average iOS developers generating only $2k in sales?
•Social Games revenues keep growing
•Facebook is not the only game in town
•Mobile offers unique 'mode of use'
Let's assume you have a good game
What is it and why will people pay?
• Known brand or license?• One-time play or repeatable?• Game of skill?• Narrative or creative journey?• Social/viral elements?
Collector Competitor
ExplorerSocialiser
Who are your players?
Different Players buy for different reasons
•Collector: – "Got to catch them all"
•Explorer: – "Where can I go today?"
•Socialiser: – "I want to be popular"
•Competitor: – "I'm going to Pwn ya!"
Only worth what people will pay
How are players going to pay?
• Premium Pricing• Try Before Buy• Hybrid (Rent/Buy/Subscribe)• Free or Ad-Funded• Virtual in-game goods • Virtual creative goods• Extra Levels• Consumables• Gifting • Advertising • Offer wall
Pricing is everything
Maximise the opportunity
• Purchases will be a barrier• Reduce the risk to the user• Understand Price Elasticity• Retrofitting is very difficult
Premium
Anticipation is everything
• Players have to crave your game
• Guarantees that players will pay to play
• You can't measure the players you turn away
• Only a select few can sustain this model
Advertising
Brand sponsored experiences
• Can be a vital revenue stream
• Media buying is getting much better
• Most effective when relevant to the game
• Needs to be increasingly smart
Freemium
1:10:100 Rule*• Free-players are your data
and marketing• Make it easy to spend the
first $1• Offer goods to shoe off
creativity and skill • Consumable in-game items
are key• Make it possible to spend
$100 or more
* Apologies to Nick Lovell
Social interaction is vital
Other people give me reasons to spend
•Let me show off my achievements
•Gifting and Reciprocation• Items gained must be
desirable to others
Understand the True Fans
True Fans are happy to spend money
• Ensure that they get value for paying
• Don't break the Free Player experience
• Engage with your most valuable players
• Avoid the 'hangover'
Who are Papaya?
• Founded in 2008 with $22M raised through DCM and Keytone.• 90 staff with offices in San Francisco, London and Beijing • More than 80% of users come from US and Europe• Popular games earn more than $1 million per year• Winner of Best Games Service Provider ME Awards 2011
1,050,000,000
$16.45/
13,611,930
37
190
...in the end it's all about the game
