Thursday, November 12, 2009

Rewards Of 'Free-To-Play' MMOs

James reveals that Three Rings' MMO Puzzle Pirates takes in approximately $50 each month from each paying user (ARPPU) for a total of $230,000 a month, all resulting from microtransactions.

In February, 2005, James chose to launch a free-to-play version of Puzzle Pirates alongside the original subscription model (which contributes an additional $70,000 each month from subscription fees).

Four and a half years later, James has learned a lot -- that the average revenue per user (ARPU) is between one and two dollars a month, but only about 10% of his player base has ever paid him anything. As a result, he says, approximately 5,000 gamers are generating the $230,000 in revenue he sees each month.

"The pivot number -- the number to focus on -- is not the $50 ARPPU but the $1-2 ARPU," he says. "That's the number that a new paying customer is worth to you. If that number were, say, 20 cents, you'd probably have a difficult time building a business."

"But if that number were, say, $3 then you have a good business that enables you to go to a flash distribution site and say, 'Hey, put my game up on your site and I'll give you a dollar for every new user you send me.' They'd surely be interested in that."

Article Link (Gamasutra)

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