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Don’t Roll Over

Don’t Roll Over. Brian Robbins Director of Games, Game Trust, Inc. Chair, IGDA Casual Games SIG. We Have a Problem. The economics of casual games suck for developers. Economics. Consumer Pays $20 Portal Takes $14 Other costs $2 Developer Gets $4 Developer nets 20%

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Don’t Roll Over

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  1. Don’t Roll Over Brian Robbins Director of Games, Game Trust, Inc. Chair, IGDA Casual Games SIG Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  2. Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  3. We Have a Problem Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  4. The economics of casual games suck for developers Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  5. Economics • Consumer Pays $20 • Portal Takes $14 • Other costs $2 • Developer Gets $4 • Developer nets 20% • Retailer nets 70% Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  6. What does the portal do? • They provide DRM • Bandwidth • Merchant fees / payment processing • Other incidental costs Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  7. What does Portal do (2) • They bring the customer • (this is their big value) • But so do Brick & Mortar Retailers • (at a much greater cost!) • B&M retail margins are 1-20% • Games to retail have a wholesale price typically around $12-$15 for a $20 title • Retailer only gets $5-$8 and all their costs come out of that! Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  8. But wait there’s more Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  9. What about • Advertising? • Price Clubs? • Subscriptions? Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  10. Advertising • Assume: • 10% of page views download (probably high) • 1% of downloaders purchase • 2 ads per page • Every purchase = 2000 page views • Typical CPM = $1 CPM (much higher?) • Portal += $2 • Goes to $4 if 1 in 20 page views download • Skyrockets if conversion rate is lower • From yesterday – ad revenue is almost equal with download revenue Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  11. What about web-demo? • It’s worth it to upsell the download, right? • These areas are setup to drive ads, not upsell downloads! • Typical ads / play = 4-8 • How many plays / download? • If 10 then every purchase = 4-8000 ad views! • Again Developer = $0 Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  12. Price Clubs / Subscriptions • Portal gets $10 / user / month • Developer gets rev share ($3) when user buys their game (at a discount) • But what about breakage? • Significant numbers of users do not purchase in any given month! • Portal gets $10 (plus ad revenue) • Developer gets $0 Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  13. Why is this? • Most developers don’t know • They don’t run the numbers • They don’t know to ask • They just blindly accept whatever is offered • Those that do • Can’t do anything alone Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  14. What is Right? • Share ad revenue just like download revenue (even if it is very small) • Real and Microsoft have announced they will be so start asking for this NOW! • Monetize developers for breakage • Wholesale pricing model? Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  15. What do we do? • Get the word out! • Tell new (and old) developers how everything works • Don’t take no for an answer • Make the deal that works for your business Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  16. What Else? • You can’t get it if you don’t ask • Demand ad share • Demand breakage compensation • Realize that your content provides value to the entire chain Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

  17. Don’t Roll Over (unless you choose to) www.dubane.com/cons/ brian@gametrust.com Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

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