Posts Tagged ‘micro transactions’

Red Bull and Headshot: one opinion about micro-transactions

Sunday, September 7th, 2008

While free-to-play, micro-transaction based titles continue to be released into the market, gamers continue to argue and voice concerns of the ‘unfair’ game balance that these systems have the potential to present.
Obviously micro-transaction revenue streams offer small and growing publishers and developers huge potential (and a relatively low time-to-market process when using fatfoogoo’s software), these publishers still must listen to the customer while producing a product that is in a sense, for sale, just not in the ‘traditional’ sense.

The pitfall and issue that gamers raise is the unfair ‘pay to compete’ or my personal favorite ‘pay to pwn’ method.  One of the surefire ways to skirt the issue altogether is to offer micro-transactions as only a system for in-game socialization and customization.  EA’s Battlefield Heroes is doing exactly this.  All micro-transactions within the game are for character customization only.  And who can fault them?  This is EA’s first major foray (and testing ground) into the micro-transaction field, and it’s probably a wise move to try to please the largest amount of people.  With that said, on the other hand, I think we can all admit that the option to purchase the Sword of a Thousand Truths does seem a bit more appetizing than a new leather trench coat.

Enter stage left the marketing and copywriting department.  The trick here is to find the right nomenclature to get the point across without generating a huge backlash.  It’s not that publishers are trying to hide anything, but the North American market has already developed a predisposition to the term, and immediately jumps to the ‘pay to pwn’ supposition.  Granted, I’m generalizing here, but the haters are often the most vocal in their opposition.

One direction develpers can take is the phrase ‘pay-to-win’.  Players of any MMO (myself included) will always seek out better gear and methods of beating a particularly difficult challenge.  Whether it’s running back to the Auction House to pick up a few more potions, or farming a bit of buff providing food to eat before the battle, players will do it.  The downside to providing a ‘pay-to-win’ micro-transaction is that it then DOES provide an unfair game advantage.  By providing this unfair game advantage, publishers have just cut off their nose to spite their face.  In other words, by providing this advantage, the player thereby removes the ‘challenge’ of the game…the thing that keeps them interested in the first place.

The opposite side of the coin is to reduce to advantages of said micro-transaction.  While this preserves a bit more of the game balance and overall perception of fairness, the micro-transaction item has thereby been so watered down that players are bound to be disappointed by the value of their purchase.  This disappointment leads to even less transactions, and eventually stoppage of play.

Hang on one second while I down a Red Bull and munch on a Headshot bar.  Right…Ok.  Back.  Fired up.  Ready to Go!

While that might be a bit of an extreme example, you get my point.  If you want to think about micro-transactions as temporary boosts in blood sugar levels and heightened senses of awareness, you might just be on the right path to providing overall customer satisfaction.  By providing minor, brief enhancements that might perhaps unfair advantages, you’ve satisfied the customers desire to obtain über status, if only temporarily.  On the other side of the coin, by providing this advantage to be used against a difficult challenge, it only provides an advantage for a limited time, thereby maintaining overall game ‘fairness’.  This also follows the average lifecycle for an MMO player: constantly moving in and out of tough challenges and short-lived situations.

By providing micro-transactions via simple ‘click to use: lasts 2 minutes’ items, publishers are providing players with relative ‘instant gratification’ with satisfying, yet reoccurring micro-transactions that will continue to deliver a steady stream of revenue.

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Approximately 67% of Korean users in their 20s purchase paid digital content

Wednesday, September 3rd, 2008

According to a new study compiled by Pearl Research and recently published by Research and Markets, approximately 67% of Korean users in their 20s purchase paid digital content.  They forecast that the Korean market will exceed $1.7 billion by 2011.

While not surprising, the study found that casual games that are free-to-play, easy to learn, and can be played in “micro-slices”, i.e. games that can be played in ten minute or less segments at a time.

Some highlighted key findings from the study include:

  • South Korea has a sophisticated information technology (IT) infrastructure with 80% of households connected to the Internet.
  • Korea has one of the highest adoption rates of purchasing virtual items and micro-transactions. Approximately 67% of those in the 20-30 age cohort purchased online paid content. Of those who have purchased digital content, 91% purchased music while 39% purchased community and avatar items
  • A common strategy in Korea is the operation of large game portals that provide a wide selection of games, including massively-multiplayer online role-playing games (MMORPGs), casual, and web board games all within one convenient site. Top game portals such as CJ Internet’s Netmarble, NHN’s Hangame, and Neowiz’s Pmang can attract 500,000 to 1 million unique visitors a day. More than 11 million Korean adults visit game portals every month, according to this reports estimates.
  • While South Korea has a robust games market, critical challenges include intense domestic competition; prevalence of “me-too” or derivative titles; challenges in expanding overseas to the US and China; and rising development costs. The “Games Market in Korea” report provides an in-depth analysis of the Korean online games market and contains an executive summary; 2007 to 2011 forecasts for the online games platforms; inhibitors and drivers to growth; deep marketplace analysis; discussion of key market players, and strategic conclusions.

With all the flurry surrounding Korea’s neighbor to the west, it’s often easy to lose site of the ‘other’ gigantic market in Asia.  With a 67% purchase rate, Pearl’s prediction of $1.7 billion by 2011 could be spot on.  The question is…who’s handling all these microtransactions, and how do you and your title reach the market before it’s too late?  The answer is already staring you in the face.  fatfoogoo can bring your title to the Korean marketplace in days rather than months.  With out vast experience in multi currency transactions, fraud detection and prevention, and plug and play integration, we can help YOU today!

 

Wanted: Free to play, bringing more viewers to the box office

Saturday, August 23rd, 2008

The action thriller Wanted staring Angelia Jolie and Morgan Freeman premiered in Europe yesterday.  Its US premier two months ago was accompanied by the launch of Swedish Developer Stillfront’s Wanted free to play MMO.

While the launch of an accompanying game with film is nothing new, this FIG (Fan Immersion Game) marks the growing popularity in such projects.  Film studios are watching the numbers, with some video game sales reaching into the millions that previously only summer blockbusters could achieve.  It’s also recently been speculated that the two media are in a dead heat horserace, with one detracting from the other.

The Wanted MMO differs slightly from other FIGs in that it’s based on a  completely free-to-play model.  Rather than launched as a parallel revenue maker, this FIG seeks to draw more and more people into the entire Wanted experience, and therefore drive traffic to box offices.  Stillfront is a FIG specialist, and explained in their press release announcing the game:

“Fan Immersion Games (FIGs) are casual, massively multiplayer online games (MMOGs) that are free to play yet also include opportunities for players to buy advantages and premium accounts using micro transactions payable via SMS messages and credit cards. These games deliver high fan engagement through their story-driven design and community elements.

According to the Casual Games Association, the North American online casual games market is estimated to reach $690 million with worldwide revenue of over $1.5 billion. DFC Intelligence states that the worldwide online games market is forecasted to reach $13 billion in 2011.”

Adding a bit of icing to the cake for the European market, the Wanted game was officially ported to the iPhone allowing viewers to bring their new MMO (and associated microtransactions) along for the ride.  In addition to utilizing the iPhone’s tilt function navigation, the mobile edition has in game benefits for players that log on regularly.  While this may only be speculation, logging in on a mobile platform has the ability to be seen by others (think train, bus, subway, etc.) and adds to the potential viral marketing aspect.

Free to play, microtransaction based models are coming at consumers left, right and center with a grain of resistance in the Western Market.  While EA’s doing a good job of breaking down the walls of acceptance with it’s highly anticipated top tier title Battlefield Heroes, perhaps bringing the concept to users via a ‘backdoor’ aka FIG, in combination with high profile pc or console based games might just be the winning recipe?

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David Perry’s 33 ways to monetize games

Sunday, August 17th, 2008

David Perry recently laid out an impressive slideshow over at Business Week with 33 examples of how to monetize games.  Perry a 27 year industry veteran has over $1 Bn of retail game sales receipts to his credit, and co-founder and chief creative officer of Acclaim games.

Perry fully admits in the article that the rapid and expansive growth of the gaming industry will and should probably make his 33 ways list obsolete rather quickly.  Perry sees games that fall into the ‘social’ catagory as those with the most explosive growth and potential.  Siting an NPD Group study, Perry notes that 15% of retail game sales go to the adult ‘mature’ audience, and 85% to everyone else.  Social games are asynchonus (meaning, busy players take turns going back and forth at each other, and do not necessarily need to be ‘playing’ at the same time) and fall nicely into the mid-zone between these adult ‘mature’ gamers and all others.  In other words, covering the most amount of the market with the widest net.

Distribution methods are also covered by Perry.  Nintendo, Microsoft, and Sony, former kings of brick and mortar distribution methods, have changed their tune and opened online distribution channels.  As soon as ISP penetration reaches the tipping point, Perry sees physical media such as cartridges and DVD’s going the way of the dodo bird.  The players to watch in the digital distribution battleground?  Facebook, MySpace, Google, and Apple.

While Perry’s list covers a wide range of money making gaming ideas, his microtransaction side is of particualr significance, pointing out even staunch anti microtransaction publisher Blizzard’s recent dipping of toes into the ‘let’s measure their reaction’ pool:

Micro-Transactions

These are small, impulse-driven purchases bought for reasons of vanity, saving time, better communications, or even moving up a level more quickly. (Levels are a player’s ranking within a virtual society.) They’re generally paid for using virtual points, either earned in the game (by playing), or bought for real money (which is a massive time-saver). A new trend is offering virtual items in exchange for access to a player’s real-world friends. So for example: “You can have this magic sword, if you invite a friend to play.” Getting that balance right can mean stunning revenue growth, which makes it even more important for you come up with offers the gamers really want. This technique works well on social networks like Facebook as friends are just a click away. If you can get more than a 1 to 1 ratio, the game goes viral, which results in exponential growth. That’s the goal here.

The image that Perry chose?

Pointing out Blizzard’s new ‘recruit a friend’ campaign whereby new comers and those that recruited them can now gain ‘triple xp’ and summon each other to each other, thereby saving a great deal of time.  The recruiter also has the opportunity to receive an exclusive in game mount if the recruitee follows through on certain terms and conditions.  See it any way you want…but it looks like a crack in Blizzard’s armor.

View Perry’s article at Business Week.

View Perry’s slideshow at Business Week.

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Fraud and how MMO’s are dealing with it

Saturday, August 16th, 2008

As the MMO industry continues to develop and grow, sadly some of the ‘darker’ aspects of economies rear their ugly head.  Credit Card fraud has become an increasingly hot topic of debate, with a number of specialist firms engaged in spotting, reacting to, and deterring future fraud in the MMO world.

Chargebacks from fraudulent credit cards are a growing problem for MMO publishers.  Chargebacks are the process by which credit card sales are refuted by the holder of the credit card.  Gamesutra recently sat down with Gene Hoffman, Chairman and CEO of Vindicia, a billing an fraud management company for a Q&A about the state of fraud in the MMO industry.  Hoffman’s views prove to be very interesting:

…. micro-transactions do seem to work fine in, say, Korea!

Gene Hoffman: Americans love “all you can eat”. Even the mobile phone companies have really evolved to all you can eat. We always challenge people to name the bill they get every month or year that isn’t in actuality all you can eat.

Outside of government granted monopolies, most people know what they are going to pay. That said, using a base plus metering can make a lot of sense. It allows you to then offer more subscription tiers that allow your best customers to pay you a higher base and less variable – again much like the plans and pricing that the mobile industry has evolved.

do you have any response to the MMOG Business Models: Cancel That Subscription! article we recently ran?

Gene Hoffman: Business model flexibility is the key issue for all the various games, and the dynamics of the game itself should drive pricing strategies. When game developers are approaching a more casual market it certainly makes sense to give more access and time to get buy-in and adoption.

It follows something we tell lots of our clients, which is “don’t be afraid of giving away what is free to you to acquire more customers and keep them longer.”

That said, we think that it is better to give people larger doses of time to create a base subscription service using tools like “payment method required free trials” and then stack additional micro-payments on a base of something more like a $5 per time period price. We see a lot of game developers and other merchants being too shy about the value of their game which leads them to under-price.

As virtual economies and the games they serve continue to evolve, so will the criminals trying to fraud the publishers.  Luckily though, through articles and interviews with industry experts like Hoffmann, we all benefit by increasing the visibility of security features on the backend that must be closely monitored and continually improved.  At fatfoogoo we’ve tested, developed, and are continually improving and updating our fraud detection methods, thereby giving the publisher one less thing to worry about.

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There’s room for both Micro-transactions and subscriptions

Sunday, August 10th, 2008

Micro transactions vs. subscriptions continues to be a hot topic of debate in not only the MMO world, but RTS and FPS fans love to weigh in as well.  While certain types and profiles of gamers my prefer one method above the other, it has become quite clear over the past few years that micro transaction based titles aren’t going anywhere soon.  As the ‘standard’ style of play in most Asian markets, the free to play concept originated in Korea with Nexon’s titles first offering players (all players) a chance to play, with available upgrades at a small cost.

While there are a number of offerings that micro transaction titles can offer; casual gamers can play whenever they want, and not be bound to a ‘time based’ subscription, players may choose to upgrade their equipment at a small cost if they so choose, games are not pirated.

Derrick Schommer of Gaming Podcast recently published an article with similar thoughts.  Highlights of Derrick’s thoughts include:

The micro-transaction concept could still help pay for all the overhead of running an online gaming business because gamers tend to be over-enthusiastic about their great addictive games. If you build a game with excellent content, replay value and strive for a community atmosphere a micro-transaction title can work just as well as a subscription based game.

One beautiful aspect to micro-transaction models is paying for content when you’re willing to pay. This includes cosmetic character alterations, basic needs items (health potions) and other products to enhance the playability of the game without requiring the gamer to do so. There will be some gamers that use this as a “free ride” and never buy anything while other gamers spend way too much because they have expendable income which helps balance out costs.

The trick to a micro-transaction game balance is allowing players to enhance their experience without taking away or crippling their game to force a micro-transaction. You do not need a “fire enchantment” which causes a bit more damage and looks really cool, but it can make your character look more sinister and provide slight benefits to battle.

Wouldn’t this make the rich more powerful than those without a lot of cash? It might might them moderately more powerful and definitely more pretty to look at, but it also allows players who would never be able to experience any of the game a chance to play. In some ways, the level ground is already broken in MMO’s like World of Warcraft based purely on game experience… a player who’s been playing for three years and has a level 70 character will dominate a person with casual gaming habits. Nothing in the world is fair, at least this gives lower level characters a chance to spend some cash to get their character on par when they’ve not got time to work through the game with hours of time investments.

Couldn’t have said it any better myself.  Read the rest of Derrick’s article at gamingpodcast.net.

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Free to Play MMO Asda Story offers ‘Guaranteed Fun’

Tuesday, August 5th, 2008

San Jose based publisher Gamescampus.com is so confident in their new offering, Asda Story, that they’re offering a $30 refund if you DON’T enjoy your experience.

Asda Story is a free to play MMO based in a colorful, bright and cheery world that features fantasy sytle anime in a 3d MMORPG setting.  Asda has a number of features, but a unique ‘soul mate’ system allows two players the ability to align to become soul mates.  These dynamic duos can then wear unique costumes and use special skills.  The ‘Real Costume System’ give players some of the most extensive character customization and personalization ever seen in an MMORPG.

When initially launched in Korea and Japan, the Soul Mate System and Real Costume System appealed to a more than 20% female user base.  These systems allow players the ability to personalize the design of their items and looks, and make their characters stand out.  Gamescampus.com is expecting to see similar results in the US launch.  Customizations will be made available via micro transactions of Gamescampus.com currency, Campus Cash.

AsdaS Story opens it’s beta testing doors this evening, August 5th at 9:00 PM Pacific Standard Time.  The open beta test is backed by a strong promise, “If this isn’t the most enjoyable free to play MMORPG game you’ve ever played, we’ll give you $30 for your feedback.”  Full information regarding the enjoyment guarantee can be found at http://asdastory.gamescampus.com/event/fun.html.

“We chose to bring this game to the west because we believe in its potential. The Guaranteed Fun Promotion is our way of showing our belief in the game and is even better than a money-back guarantee because you dont have to spend a penny to play Asda Story,” said David Chang, Executive Vice President of Marketing and Business Development for Gamescampus.com. “We are just asking you to invest your time in playing our game, and if after playing for 30 days you dont feel it has been the great game experience we feel it to be, we want to hear your feedback and we’ll give you $30. It is as simple as that.”

This is NOT however a sign up, don’t play it, and cash in on $30.  To ensure that gamers are giving Asda Story a fair crack, in order to qualify for the $30 (if you so choose), players must reach level 40 by September 4th, 2008.  The beta will also be celebrated with a number of in game events that are detailed at the Asda Story site.

 

Micro transaction based ‘Fireteam Reloaded’ receives Texas State Grant

Monday, August 4th, 2008

Austin, Texas based game development studio, Pixel Mine has recently been awarded with a state grant as part of the Texas Moving Image Industry Incentive Program.  Governor Rick Perry signed the bill into law in June 2007, and Pixel Mine’s title ‘Fireteam Reloaded’ is the first game to receive the grant.

“This is an exciting time to be a part of the entertainment industry in Texas” says Pixel Mine President David Reese, a Texas native. “We have been privileged to work with several very fine local video game and film production studios in Texas and look forward to seeing what they’ll be showcasing at AGDC in August.”

Fireteam Reloaded was first reveiled on September 4th 2007 at the Austin Game Developer’s Conference, and the flagship title was released on June 11th 2008.  Fireteam Reloaded is a free to play, micro transaction based combat based action game.  With a cartoon feel, Fireteam Reloaded does have overtones of EA’s upcoming cartoon shooter, Battlefield Heroes.  Players use micro transactions to purchase additional in game items and additional play areas (additional maps).  Fireteam reloaded will be honored as the winner of the Independent Games Festival Multiplayer Action Game of the Year at the 2008 Austin Developers Conference.

Have a view of Pixel Mine’s first Fireteam Reloaded trailer (ed note: nicely presented!)

YouTube Preview Image

About Pixel Mine, Inc.
Headquartered in the gaming hotbed of Austin, Texas, Pixel Mine, Inc is a developer and publisher of high quality independent entertainment products. More information about Pixel Mine can be found online at www.pixelminegames.com.

About Fireteam Reloaded
Fireteam Reloaded is a team based multiplayer game that will get your blood pumping and your heart pounding! Play as one of three character classes across a variety of post-apocalyptic urban settings in a struggle to dominate your opponents. You can go solo or team up with up to three other friends in thrilling 10-minute matches that will keep you on the edge of your seat. Visit www.fireteamreloaded.com for more information.

About the Texas Film Commission
The Texas Film Commission is a division of the Governor’s Office under the direction of Governor Rick Perry. More information can be found at the Governor’s website: http://www.governor.state.tx.us/divisions/film.

 

Are micro transactions on the horizon for Xbox avatars?

Sunday, August 3rd, 2008

Microsoft corporate Vice President John Schappert recently spoke with Venturebeat’s Dean Takahashi on a number of topics including a micro transaction based model for Xbox avatars.

The Microsoft avatar system was announced at E3, and one thing was clear: There’s a lot of potential for micro transactions in the Microsoft future.  With the recent interview, Schappert puts the official stamp on the ‘It’s something we’re seriously considering’ rumor.

“That may be in the future,” Schappert said when asked about the prospect. “In the near term, we want to launch these with great customization and a great library of accessories this fall. I think there is a lot more we can do with them. You will see us continue to add experiences that make use of the avatar.”

“To me, avatars are a logical extension to give us countless ways to personalize our own styles,” he said.  “It’s not like we are using avatars to recreate the perfect human body. And it’s not too cutesy. It’s in the middle. It dresses up the core first-person shooter, who can be edgy. And the more casual player can dress up to look friendly.”

If this sounds more than familiar, just have a think for a second about the Nintendo version: Mii’s.

“I have to make a shout out to the Miis and say that Nintendo did a phenomenal job integrating them into the Wii games,” Schappert said. “There was a lot of inspiration from them. At the same time, it’s a logical evolution of our gamertags on Xbox Live. It was a question of when to introduce it.”

It’s good to see that Microsoft isn’t just doing a bit of chest beating, but giving a nod to the Nintendo boys for beating them to the market.  Whether these custom, micro transaction based avatars will cost an unruly amount of Microsoft Points is yet to be seen.

Micro transactions for in game avatar customization; good or bad?  While the topic can and most certainly will rage on in forums, blogs, and chat channels, isn’t it simply a case of two different types of gamers?  Will the ‘hardcore’ category yet again be the most vocal in it’s opposition, while the ‘casual gamer’ category silently goes about it’s business, dropping a buck here and there to truly customize and enjoy their in game toon?  Clearly the market has shown growth in the micro transaction field, both in interest and development.  With Microsoft putting more resources into developing a program, isn’t this a clear stamp of approval?

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City of Heroes adds Micro Transactions for Respec

Friday, August 1st, 2008

NC Soft’s popular title City of Heroes will now have a micro transaction system built into the game.  The micro transaction model will be made available for character respecs.

While available for purchase services are not new to the game, the ability to purchase a respec is.  While creating a character and leveling it through the City of Heroes world, a player has a multitude of powers they may choose from.  Respeccing the character allows this player to re-select their powers from their chosen primary and secondary powers, including any other pools of powers they may be able to use.  The respec does NOT however allow a player to reselect primary or secondary powers.  This feature will function exactly like the existing respec currently available in the game.

This micro transaction respec may be purchased at the in game store found at the character select screen for USD$9.99.

While there are a number of in game methods for respeccing a character, NC Soft sited that a growing number of users had requested the feature.  Players spoke, and City of Heroes developers listened.  Now, if the player so desires, a respec is available for a small fee.

Once a player has respecced the character, they must visit a Respec Contact in game in order to use it, just like the current respec process requires.  Respec Contacts includer Jack Wolf in Galaxy City and Arbiter Lupin in Nerva.

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