[casual_games] Different Payment Models
brian-l at dubane.com
Tue Oct 10 23:23:52 EDT 2006
Lots of great thoughts in this thread, thanks everyone for sharing so far!
One thing that it seemed like everyone kept coming back to, but I
believe is a completely flawed assumption is that users are paying $20
/ sale. Based on my own experience (which I can only generalize due to
NDA's, etc) this just doesn't seem to be the case.
In a recent example we were seeing average net per sale of game of
right around $3 / unit, but our revenue share's should have provided
much, much higher than that. After digging into the numbers I
discovered two main reasons for this:
1 - Many distributors/portals have very large deductions for
bandwidth, marketing, etc off of the price a consumer pays. The
developer royalty comes after these deductions.
2 - More surprising however was the percentage of games sold at a
discount via package pricing models or other "club" type of plans. In
many cases we were actually getting the appropriate % of revenue after
a reasonable deduction for costs, but the end consumer was only paying
$6-$10 for the game, not the $20 everyone expects.
This is something that everyone needs to start keeping a much closer
eye on as we're already devaluing our product very significantly, and
I believe is doing more to hurt the download model than many of the
other factors mentioned already.
Casual Game Visionary for Hire
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