MBA Mondays: Revenue Models – Gaming // thnxz to @fredwilson – avc.com


 

This is the last post in the revenue model series, which is based on the peer produced revenue model hackpad we created at the start of the series.

Gaming is interesting because there are a number of revenue options that game developers can choose from when thinking about how to make money from their game. The hackpad lists the following:

There is still a sizeable business in selling a version of the game to the game player. That’s how the console game (xbox, etc) market works. It is also how downloadable games market works. And there is a vibrant market in mobile games that you have to pay for to play.

But the games market has been moving to newer models in recent years. In app upgrades is certainly one of the more important revenue models. Many of the most popular mobile games are free to play but offer in app upgrades to get more game elements or simply to eliminate the ads. This is an example of the freemium business model in action.

Advertising is another important revenue model. For many web based games, advertising is the dominant form of revenue. On mobile, advertising supports the free offer and the elimination of advertising is often the value proposition for the in app upgrade.

The revenue model that is mostly (but not totally) unique to gaming is virtual goods. Virtual goods (like a tractor in Farmville) allow the player to have more capability in the game and they can be earned over time but are often purchased to enhance game play. This revenue model was inititally created in the asian gaming market but has been adopted by game developers all over the world.

Full article

 

The 5 W’s of Social Game Purchases [Infographic]


The first wave of the social gaming bubble may have popped. I’m not the first one to say it, and I won’t be the last. Zynga is at an all time record low, and traffic is declining. Playdom and Playfish, two giants of yesteryear, have seen their player numbers fade out.

The infographic provided by Arkadium, looks at the who, what, where, why and when about the way that social gamers purchase. A few tidbits:

Leer más “The 5 W’s of Social Game Purchases [Infographic]”

Mobile Games: The Economics of Freemium [Infographic]


by  | http://www.getelastic.com

Who creates a game only to give it away for free? Where’s the $$ in that?

The freemium business model is taking over — an estimated 65% of revenue generated by the 100 top grossing apps in the App Store, and an estimated 72% of total App Store revenue comes from freemium mobile games. In-game purchases like extra lives, special powers, virtual goods and personalizations are driving the revenue.

This week’s Infographic Friday is homegrown, featuring snippets of findings from our latest research report Cashing in on the Smartphone Gaming Boom that examine avid and causal mobile gamers’ in-app spending habits.

Click image to enlarge

Thank you for tweeting and sharing! And don’t forget to check out the report, with more juicy facts on avid and casual gamers.

Introducing Social Times PRO: Detailed Virtual Goods and Social Games Reports and Conference Access

Posted by Neil Vidyarthi

socialtimes-pro[1] Over the last year, Social Times has been undergoing quite the transformation: We’ve grown our roster of contributors to 10 talented writers, we’ve made updates to our statistics technology and we’ve welcomed an unprecedented number of new readers. With this continued success, we’ve refined our goals and one of our main goals is to deliver insight and value to our readers. For that reason, I’m proud to introduce Social Times PRO, a new service dedicated to providing readers with insightful research reports on social games, virtual goods and Facebook, but the service also gives you access to all of our Social Times conferences and events. Read more after the jump!


Posted by Neil Vidyarthi

socialtimes-pro[1] Over the last year, Social Times has been undergoing quite the transformation:  We’ve grown our roster of contributors to 10 talented writers, we’ve made updates to our statistics technology and we’ve welcomed an unprecedented number of new readers.  With this continued success, we’ve refined our goals and one of our main goals is to deliver insight and value to our readers.  For that reason, I’m proud to introduce Social Times PRO, a new service dedicated to providing readers with insightful research reports on social games, virtual goods and Facebook, but the service also gives you access to all of our Social Times conferences and events.  Read more after the jump! Leer más “Introducing Social Times PRO: Detailed Virtual Goods and Social Games Reports and Conference Access”

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