6. 4 Online Game Segments Main Segments: Mobile Games, for example for mobile phone or PDA Online Games: Casual, Social, MMOs, Browser-Based (often considered MMOs) Console Games – distribution available both offline (DVD) or online (wi, PS, Xbox Live, etc) Standard PC Games – if purchased online fall under retail market
7. Business Models Pay-to-Play (client based) – customers have to pay an initial amount in order to start playing – Star Craft II, Diablo, Guild Wars, most Yahoo Games Customer in most cases have to download the game in order to play it This business model is slowly shifting towards Free-to-Play Some major MMOs are based on this business model 5
8. Business Models Free-to-Play – customer can play the game without paying anything. Virtual currencies are available to advance in the game – Mafia Wars, Farmville Customers most play such games in a web browser Most gaming developers and publishers are moving towards this business model 6
9. Business Models Play-to-Pay at “x” – Customers pay based on a certain criteria - level reached (every 5th level), special DLCs (unlocking special areas) In most cases, customer have to download the game in order to play it Sometimes this business model is coupled with a small initial amount One of the best ways to monetize games 7
10. Business Models Subscription based– Customers pay a small initial amount to have the game + monthly fee to play it – World of Warcraft, Conan In most cases, customer have to download the game in order to play it The best monetization business model but also the most difficult to achieve Only a few gaming companies have managed to use it successfully 8
32. 26 Industry Specific MMO games represent the largest portion of online games, followed by wireless games Wireless games are expected to grow by 14% on an annual basis reaching to up to $13 billion in 2013 The three largest game producers are – the US, Japan and the UK, followed by Germany and Australia Around 41% percent of gamers are women
33. 27 Industry Specific Predominant payment method used for game purchases – credit cards Larger MMOs depend heavily on alternative payment methods The industry is one with many chargebacks, especially in the Free-to-Play business model Games will shift towards the Free-to-Play business models in the next couple of years