Monetization in free-to-play business model from a game designers point of view

Abstract

Free-to-play games are a growing trend in the gaming world. Microtransactions are a way for the player to get more content in a free-to-play game. Microtransactions are the main source of revenue from free-to-play games. This research introduces important free-to-play key performance indicators also known as free-to-play metrics. In addition to knowing the basics of free-to-play key performance indicators, a game designer should be aware of user acquisition. User acquisition is closely associated with Big Data and data analytics. Data analytics can and should greatly affect the game designing solutions.

The free-to-play world offers several other challenges for the game developer. The three biggest of these challenges are: to make as many players as possible to download the game, to maximize the number of player returning to the game after a while and then maximize the monthly average gross revenue per paying users.

Two interviews were made in a Finnish gaming company called Rovio Entertainment Corporation specialized in free-to-play games and their monetization. According to the literature review and the interviews made data analytics and user acquisition are an essential part in making a free-to-play game profitable. Planning and optimizing a game economy should be done as early as the prototype phase and should be maintained through the life span of the game.