[casual_games] Conversion numbers - what makes a"successfultitle"?

[James Gwertzman]

$20 = gross revenue

The developer will see on average $4-8 per unit sold based on the
distribution channel

 

So 400,000 units = $1.6M to $3.2M net revenue

 

Also I should add that it's becoming harder and harder to reach 400K
units sold. Take a look at my slides from a talk at GDC called "So you
want to create a casual  game company..."

http://www.casualgamessummit.com/presentations/Gwertzman_Starting_a_Comp
any.ppt

 

 

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

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 Donald
Sent: Tuesday, March 27, 2007 7:26 PM
To: 'IGDA Casual Games SIG Mailing List'
Subject: Re: [casual_games] Conversion numbers - what makes
a"successfultitle"?

 

Thanks George, this is very helpful.

 

I do have a couple of quick questions for you (or anyone else who would
like to chime in).

 

1. Below you use a benchmark of 400,000 units for a smash.  Later you
mention a smash will generate $2m in revenue.  If each game sells for
~$20, then shouldn't that number be $8m?

2. 400,000+ units will get you into the Top 20.  However, I estimate
that it will take more like 700,000+ units to break into the Top 10.

 

Can anyone verify if this is correct?  Thanks all!

 

Last thought:

In 2005 some 80% of download revenues went to the Top 30 games.  I
estimate this number dropped to 70% going to Top 30 games in 2006.  Our
market is indeed maturing quickly.  This brings both positives and
negatives to small shops like ours.  Conclusion, upon jumping into the
waters, swim fast!  (LOL!)

 

Best!

 

Donald

xBlitz Entertainment

"Casual Games, Serious FUN!"

 

www.xblitz.com <http://www.xblitz.com/> 

 

________________________________

From: George Donovan [mailto:George.Donovan at gameagents.com] 
Sent: Tuesday, March 27, 2007 2:53 PM
To: 'IGDA Casual Games SIG Mailing List'
Subject: Re: [casual_games] Conversion numbers - what makes a
"successfultitle"?

 

FROM:

Smash = above 400,000 units. This will cost you between 250 - 700K to
develop this type of game - and if you are good, you can deliver a smash
once every couple games. Sales are so top heavy in our market - the
other stratifications of games will keep you alive, but will probably
not make much big-time profit. (at 2M in revenue for a smash - one in
five of your games needs to be a smash)

 

If you read Ernie & Ion's article in the current issue of the Casual
Connect Magazine - they point out that in a hit driven business, you are
going to eventually going to need to deliver a hit to stay alive in the
market. (http://mag.casualconnect.org/) Everyone should read this if you
haven't already, they did a great job.

 

The online casual games industry is almost at 1 Billion USD now!  We
aren't a cute little industry anymore, so it maybe a good idea to hire a
consultant or partner with an established company to evaluate and learn
about the industry and flush out a business plan before jumping in.

"

 

 

Jessica Tams : Managing Director : Casual Games Association

George Donovan

President

www.GameAgents.com <http://www.gameagents.com/> 

www.GogiiGames.com <http://www.gogiigames.com/> 

 

Office: 506-855-4945

Cell: 506-872-4585

Fax: 506-384-3802

 

 

 

________________________________

From: casual_games-bounces at igda.org
[mailto:casual_games-bounces at igda.org] On Behalf Of Greg Zesinger
Sent: Tuesday, March 27, 2007 2:01 PM
To: casual_games at igda.org
Subject: [casual_games] Conversion numbers - what makes a "successful
title"?

Hi all,

  I am interested in developing an understanding of how the industry
views success in terms of #s of conversions on an annualized basis (not
just the conversion rate) across all portals.  My preference would be to
break it down via the following:

 

1)       Smash Hit

2)       Above Average Performer

3)       Average Performer

4)       Below Average Performer

5)       Complete Flop

 

Anyone have some general conversion numbers you wouldn't mind sharing?
Thanks.

 

-Greg

 

Greg Zesinger

Product Manager, eGames/Cinemaware

 

 

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