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Showing posts with label currency. Show all posts
Showing posts with label currency. Show all posts

13/02/2011

Micro Transactions: Does it really work?

Also known as Micro Payments, this model offers gamers to purchase services, premium content and above all virtual goods, through small, almost secondary, payments of virtual currency, ranging from 0.30 cents to $5 USD.

The purchase is done through a virtual currency (see below) and the "goods" are received instantly, hence serving as a catalyst for "instant gratification". Estimates are that sales of virtual goods (via micro transactions) will remain the only dominate business model in the social space.


Nomenclature: Most games include two types of virtual currencies; soft-cash and hard cash. The two are usually named" in a way that will differ it from the connotation of real money(Gold & Silver, Dollars & Coins, or any other terminology). Hard Currency has a wide array of nomenclature, usually dependent of the game genre. Favor Points is one of the most popular names (origination in Zynga's first games). Other names include: Gold, Sand Dollars, Horse Shoes, etc.
  • Soft Cash: also known as soft currency  is a freemium virtual currency that can be gained by playing the game repeatedly (mine for minerals, harvest resources, etc). The more activity a player conducts, the more soft-currency he can gain. This type of currency can be used to purchase a large array of virtual goods. In many cases these are vanity items (see: Virtual Goods) with minor or no effect on gameplay. 

  • Hard-cash:  Also known as hard-cash, premium currency or VIP currency, this monetary system must be purchased in unique-value bundles. Though most games confer a small amount of Hard Currency to every new player, allowing him to experience the “joys” of premium goods, it is usually quickly consumed. Hard Currency enables players to purchase unique or rare goods. Many of these items have a very appealing look, a limited quantity or a powerful game effect.
Dual Currency Items - Some social games offer premium goods with a dual price point. Players can purchas the item for an ultra-high amount of Soft-Cash (requiring the players to invest hours of game time) or for a small amount of hard cash. The strong contrast between the two price points is used to push players to instant purchase of premium currency.

Exchange Factor
Very few games enable players to exchange between soft and hard currencies. Those games that do enable it, use two mechanisms to control the exchange flow:
  • Exchange Rate: the exchange rate, as in real economy, exhibits how much one currency is worth in terms of the other. This is usually a round number (facilitating calculations) in the hundreds or thousands (e.g. – 1 gold = 1000 silver coins)
  • Periodical Limitation: The game introduces a daily, weekly or monthly limitation on exchange factors (e.g. – “you can exchange up to 10,000 silver coins every day”)

12/02/2011

Virtual Goods

The term Virtual Goods refer to a series of virtual items existing within a game environment, a social network or a virtual world. Virtual items have a graphical manifestation, sometimes accompanied by a set of game benefits.
Virtual Items are not only the catalysts for any game-as-a-service title but also serve as the main business aspect for such experiences. Such games are largely driven by the various social interactions that can be achieved through Virtual goods.

Vanity Items 
A large percent of virtual items within social games are referred to as Vanity Items. These items have no game effect beside the appealing visual enhancement they offer to the user‟s Avatar (graphical character representing the user within the game world) or a certain ambient (user‟s virtual living–quarters).
Examples for Avatar-related Vanity Items:

Examples for Character-related Vanity Items
  • Clothware; shirts, shoes, scarves, coats, armour, suits, etc
  • Personal Props; scarves, eye-glasses, hats, wrist-watches,
  • Body Enhanecments; tattoos, unique skin color, wings, fangs, horns, etc
  • Animated gestures (applied to the player‟s Avatar); dancing, laughing, kissing, etc



















Examples for Ambient-related Vanity Items
  • Buildings; foundry, warehouse, hotel, inn, shop, greenhouse, etc
  • Furniture; chairs, sofas, carpets, wall-paper, bath tub, etc
  • Props; bell, grandfather clock, fences, decoration, etc
  • Appliances; TV, refrigerator, Plasma screen, etc
  • Vegetation; plants, trees, crops, etc.
  • Seasonal Effects; snow, rain, winds, etc.
  • Animals; sheep, mules, horses, geese, etc.

Utility Items
A Utility virtual item has a direct effect on gameplay (beside its visual manifestation). In many games, the more powerful a utility item is, the more appealing it will be visually (hence, also has a strong vanity factor).
Utility items affect the game in various ways, depending on the game in question and the given game dynamic. Some of the most prominent examples are:
  • Increase Damage / Generate Instant Damage
  • Instant XP Bonus / Temporary Increase in XP accumulation
  • Instant Virtual currency bonus / Temporary Increase in Currency accumulation
  • Deflect/Reduce Sustained Damage
  • Increase Movement Speed
  • Increase Attribute Regeneration Speed  / Instant Attribute Regeneration
  • Increase Attribute (Permanently/Temporarily)
  • Unlock New Environenet/Level/Purchasable Items/Objectives (Quest)
  • Complete Collection

Pre-Requisite Items
Requisite Items are virtual Items that may or not have a Utility/Vanity factor, but are needed in order to access a certain game experience (Quest, Level, Objective, Battle, etc). Pre-Requisite Items are “Keys”; they offer access to locked game content.

Usage: Games use Pre-Requisite Items as a main exit-source for virtual currency, requiring players to spend their virtual currency on such items (or play more often to gain the required virtual currency to buy the pre-requisite item). Pre-requisite items have become in fact one of the main currency-channels in gaming and are widely known in games such as Mafia wars, Castle Age and similar Role Playing Games.

Consumables
Consumables are Utility Items that expire after a single usage or a given time frame and are one of the major trends in the gaming landscape.

Effect: Most Consumables regenerate lost attributes (Health, Energy, Stamina, etc) or boost the player's gameplay for a given timeframe (Attack, Defense, Speed, etc). If the consumable is a weapon-like item (e.g. – Grenade) it can also amplify damage or generate instant damage to an enemy.

Business: Consumables are widely known as ingame items (found during the game), but due to their popularity they became virtual goods during 2009-2011. Consumables are sold in bundles, including 5-100 items of the same kind. Due to their wise usage, consumables are regarded as a “wise investment”. Leveraging the Random Gift (See: Gifting), Consumables are also sold in Random Bundles/Packages that include a random variety of consumables.

Examples: Consumables include a wide range of items. Most popular examples: Potions, Elixirs, Recharges, Medical Kits, Vaccines, Drugs, Grenades, Bombs, Dynamite, Cigarettes, Special bullets, etc.

Pets
Pets are one of the most popular virtual items in the gaming experience. A pet is an animated Avatar that follows the user‟s Avatar and assists him in various situations (combat, crafting, etc). The Pet combines the concentrated aspect of both utility and vanity items, as it is viewable by other players and affects game play in a unique manner. Several typologies under this category:

  • Riding Beasts; These Pets drastically increase the players movement speed, while offering combative abilities (in such games that offer combat action). e.g. - Tiger, Bear, Horse, etc.
  • Combat Pets; These pets are highly efficient in combat-like situations. e.g. – Eagle, Puma, Grizzli Bear, etc.
  • Carrier Pets; These pets are enabled to carry a massive amount of weight, hence offering the player additional inventory slots in which he can store items. e.g. – Mule, Donkey, Camel, Elephant, Horse, etc.
  • Vanity Pets; These pets have an impressive visual aspect and are usually highly animated to provide a true vanity item to the player. e.g. – Cat, Dog, Parrot, etc.

    29/01/2011

    How do Gamers spend their money?

    In their original "template", gamers are not the optimal "Paying audience". 
    Gamers are a passionate bunch, on the verge of zealotry to their favorite brands and game worlds. Yet, with the arrival of new gaming industries, such as the social and mobile space, spending habits seem to change drastically. If this is thanks to the abundance of games or the transparency and popularity of online transactions, this is yet to be deciphered. 

    49% of social game players said that when they connect to social networks, they do so specifically to play social games. In addition, Facebook is by far the most popular web platform destination to play social games (83% of respondents said they play games there, compared to Myspace which is in second place with only 24%)

     
    Spending Patterns (Social, BBG)
    1. Utility Goods (effect the game, rather than just vanity goods. see Virtual Goods) drive more users to pay.
    2. Sales and Special Bundles drive users to spend more.
    3. Repeat purchase should be as seamless as possible, facilitating the process.
    • One Time Purchase - $12 USD
    • Repeat Purchaser - $150 USD
    • Top Spender - $1000 USD


    Out of 100% spenders, 56% will make a second purchase and 25% will purchase 3 times or more



    47% of social gamers said they are very unlikely to purchase virtual items with real money, with only 9% saying they are very likely. Women are more unwilling to purchase virtual items with real money (54% said “very unlikely”) than men (38%).