[casual_games] selling game online

[James Gwertzman]

His other numbers, though, are fairly accurate. And as one of the
posters pointed out, the trend these days is not to calculate off of a
$20 retail price point, but more like a blended average of $12-14 based
on sales through volume discount plans such as GamePass or Megapack (on
Big Fish Games).

 

Finally, another poster in there said something like a typical rate
through a publisher is in the range of 60-70% instead of the 30% that
Greg quoted. I put my money with Greg on this one - 30-40% is much more
common for a publishing deal in the casual game space, less in the
retail space. If a small developer can find a publisher who will fund
development and do all sales & marketing & distribution and pay out
60-70% then take it!

 

---------------------------

James Gwertzman

Director of Business Development

PopCap Games, Inc.

+1-206-256-4210

________________________________

From: casual_games-bounces at igda.org
[mailto:casual_games-bounces at igda.org] On Behalf Of James C. Smith
Sent: Thursday, February 08, 2007 4:55 PM
To: 'IGDA Casual Games SIG Mailing List'
Subject: Re: [casual_games] selling game online

 

Let me illustrate what Russell means by "dramatically impacts the 3rd
and 4th set of numbers"

 

In Greg's 3rd example he lists a developers share as $4.21 but in
reality it would be $7.41 if you apply the percentages in the correct
order and closer to $7.68 if you use more accurate cost of goods (COGs).

 

Getting $7.68 rather than $4.21 per sale is going to make a big
difference for the developer.  At the risk of confusing things more by
introducing another percentage, I would say that a developer gets 82%
more money than Greg predicted. ;-)

 

James C. Smith

	-----Original Message-----
	From: casual_games-bounces at igda.org
[mailto:casual_games-bounces at igda.org] On Behalf Of Russell Carroll
	Sent: Thursday, February 08, 2007 4:37 PM
	To: 'IGDA Casual Games SIG Mailing List'
	Subject: Re: [casual_games] selling game online

	From the Reflexive side the numbers are inaccurate.

	 

	Our affiliate program does not impact the developer share.

	 

	That fact dramatically impacts the 3rd and 4th set of numbers he
has listed in the article.  Since we are specifically cited as an
example of those sets I would say it brings the numbers into question,
though I can't speak to their accuracy for other portals.

	 

	I commented the article, using the article's format to give a
better understanding of how an affiliate sale is calculated.  (notably
the numbers aren't exact and his scenario has the developer paying for
bandwidth and a DRM fee, which isn't charged to developers through
Reflexive, but they give a reasonably useful result)

	 

	Russell Carroll
	Director of Marketing
	Reflexive Entertainment
	(949) 830-1903 x14

	 

	 

	
________________________________


	From: casual_games-bounces at igda.org
[mailto:casual_games-bounces at igda.org] On Behalf Of Robert Gordon
	Sent: Thursday, February 08, 2007 3:41 PM
	To: IGDA Casual Games SIG Mailing List
	Subject: [casual_games] selling game online

	Hey gang,
	
	Very interesting post from Greg Costikyan today wrt the
economics of selling games online:
	
	
http://www.costik.com/weblog/2007/02/economics-of-selling-games-online.h
tml
	
	Lots of numbers in there (most than are usually revealed). Would
be VERY curious to hear from some folks on this. Are these numbers
valid? How do most (successful) developers really operate?
	
	Best,
	
	r o b
	
	
	| Robert Gordon
	| The Article 19 Group Inc.
	| phone: 514.938.8512
	| email: rob at article19.com
	| http://www.article19.com

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