Monetization trends by Territory (GIT Money Talks 2013)
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Paha Schulz is the Director of Business Development at Crytek, an independent game developer. Schulz has experience in both Asia and Europe in the games industry and is currently responsible for business development of Crytek's games-as-a-service titles like Warface. The document discusses trends in monetization across different territories and how Crytek adapts Warface's monetization models, content, and tools to localize the game for different cultures and markets.
Monetization trends by Territory (GIT Money Talks 2013)
- 1. Monetization trends by Territory Paha Schulz, Director of Business Development Crytek
- 2. • Korean – German • 13 Years in the Games Industry • 6 Years Asia, 7 Years Europe (4 Years UK, 3 Years Germany) • NCsoft (Korean HQ & Europe), Electronics Arts, Crytek • Business Development, Online Publishing, Market Analysis, Marketing, Production, Monetization • Currently Responsible at Crytek: a. Warface & other Games-as-Service Title Business Development b. Portolio Management: Games-as-Service Content Sourcing Paha Schulz – Who am I
- 3. • One of Europe’s largest independent game developers • Digital entertainment and technology creator • 14 Years in business • 800+ employees from 40+ nations in 10 studios worldwide • 5 AAA games released, 5+ in development • Expanding business, via technology, into: Real-time 3D for Simulation, Education, Film and TV, Online Crytek – Company Facts
- 4. Crytek - Core units & brands •Creation of interactive entertainment content & franchises based on CryENGINE technology •Platforms: Console, PC, Online, Mobile •Development & licensing of CryENGINE technology •Development & operation of social publishing platform •Serve as an independent freemium distribution and service platform for online games & content GAMES REALTIME 3D TECHNOLOGY SOCIAL ENTERTINAMENT PLATFORM
- 5. Monetization trends by Territory Let’s start!
- 6. Definition of FREE (Economy) Free 1 •Direct Cross- Subsidies •i.e.: try first free, buy later Free 2 •3rd party Market •i.e. ad- supported Free 3 •Freemium •i.e. Paid users subsidy free users Free 4 •Nonmonetary Markets •i.e. Attention, reputation, likes Free: The Future of a radical price Book by Chris Anderson (author of “The Long Tail”) Free economy is a subsidy economy
- 7. Focus for territorial differences in context Free 1 •Direct Cross- Subsidies •i.e.: try first free, buy later Free 2 •3rd party Market •i.e. ad- supported Free 3 •Freemium •i.e. Paid users cover free users Free 4 •Nonmonetary Markets •i.e. Attention, reputation, likes
- 8. Free 1: Not obvious, but many games do this Free 1 •Direct Cross- Subsidies •i.e.: try first free, buy later Hybrid of Free 1 & 3 •Freemium but at certain point becoming direct cross- subsidies • “Lite” VS full model • Demo, shareware etc. • F2P games which at some point get impossible to play without paying • Mobile games which are F2P, but not necessary online multiplayer focus tend to be like this more
- 9. FREE 2: Some territories have specific 3rd party models Free 2 •3rd party Market •i.e. ad- supported South Korea: PC Bang (Internet Café) B2B (3rd party) business model
- 10. Free 3: Most territorial differences Free 3 •Freemium •i.e. Paid users cover free users Demand of Free User •Expectation of the services, content & game- play provided for free Demand of paying user •Expectation of services, content, & additional game-play if paid Matter of Behavioral economics (social, cognitive and emotional factors)
- 11. Why the difference? 1. Cultural differences in social physiology • Ex: You paid, you deserve to be better VS you paid, you cheated 2. Industry history of different anchoring • Ex: all the games I played charged weapons for time usage VS permanent but breakable weapons 3. Cultural difference of behavior, preference & popularity • Ex: I want my character to look like this K-pop idol VS I want my character to look gritty and manly 4. Difference in Disposable Income • Ex: I need to skip lunch to get this item VS Where can I put my credit card details 5. Legal & legislation differences • Ex.: Random items are gambling, You can’t kill Pandas, PvP with item-drop possibility is 18+
- 12. 1. Cultural differences in social physiology 2. Industry history of different anchoring 3. Behavior, preference & popularity 4. Difference in Disposable Income 5. Legal & legislation differences West VS Asia West • Pay2win is unfair • Free2play is low quality • Give me my different choices • I have more money then time to do this Asia •Let me pay to be better at this •Everything is free to play (legitimate or pirated) •Give me the best option to feel like a Movie star •I still don’t want to pay and rather find a way to spend time on it (even if I have the money) •Our government dictates what is not allowed in the games *High-level generalization
- 13. 1. Cultural differences in social physiology 2. Industry history of different anchoring 3. Behavior, preference & popularity 4. Difference in Disposable Income 5. Legal & legislation differences Asia: China VS Korea VS Japan China •That guy has money & paid, that’s a skill •This game charges different to Crossfire •The K-pop girl skin is cool! •I don’t have money to spend this week •No killing panda, no skulls, no playing too much every day Korea •That guy paid, I hate him •This game charges different to Sudden Attack •This K-pop girl skin is cool, but what’s the stats? •I don’t WANT to spend money you evil game •Under-aged shouldn’t play after 12am, PvP is for adults, maybe games are like drugs Japan •Let’s not play competitively, play cooperatively •Where is the gatcha? •Anime, Manga, Otaku • Gatcha! Here is my money! •Gambling is bad but gatcha is good *High-level generalization
- 14. West: North America VS Europe VS Russia 1. Cultural differences in social physiology 2. Industry history of different anchoring 3. Behavior, preference & popularity 4. Difference in Disposable Income 5. Legal & legislation differences North America •Can’t I just put in my credit card & subscribe? •F2P are games on Facebook and mobile •My character looks like Wolverine. It’s awesome! •Credit Card pays for me Europe •This game is broken, you have to pay to win •F2P are browser games or low quality PC games •Barbarians! Vikings! Napoleon! •I only have cash, how can I give you this? •German government doesn’t allow X Russia •I like capitalism. You pay and you get it. •F2P has low quality service, but’s it’s free and if you pay it gets better •This public holiday outfit is cool! •I have money to spend, just give me the reason *High-level generalization
- 16. North America & Europe •Gface is Crytek‘s own developed & operated social publishing platform •Serve as an independent freemium distribution and service platform for online games & content Crytek own Social Game Platform Asia & Emerging Markets Publisher Territory •More territories & deals in negotiations Warface: Global Service Development Team Live Team Publishing Team •Major content development • Overall creative direction •Local content development & tweaking • Owner of live environment • Owner of publishing & service • Either local publisher or Gface
- 17. Tools to adopt & localize (culturelize) Numeric changes • Make as many things numeric (progression, weapon recoil, XP, rewards etc. etc.) and make it easy to be changeable with tools live operators can change easily All monetization models switchable • permanent items, time based items, micro-subscriptions, random items etc. etc. Have them all in the system, and turn on what works and don’t what doesn’t Local cultural items • Manly version, K-pop version, Anime version etc. etc. be flexible enough to provide relevant content and be open to regional experts Good Analytical tracking systems • No use of being flexible if you don’t know what’s happening during live service. Have good analytical tracking systems in place to be responsive & reactive to game community
- 18. Paha Schulz Director of Business Development, Games-as-Service Email: paha@crytek.com Crytek GmbH Grüneburgweg 16-18 D-60322 Frankfurt am Main