Gamifixation (Part 1)
My first exposure to the NBA was probably seeing Vince Carter dunking on a highlight reel. However, it was NBA Live 2004 on my cousin’s PlayStation 1 that really got me. I had so much fun that I bought NBA Live 2005 for the Xbox, I started watching NBA games on TV and even went to Raptors games in Toronto. Talk about ecosystem entry points, eh?
The business model for games back then was pretty simple: sell CDs. Developers churned out games for the NBA, NHL, NFL and MLB every single season for their recurring revenues. They’d add a few features to gameplay, improve graphics and most importantly, update rosters.
But then, consoles connected to the internet and free roster updates kept your content current. A key reason to buy the newest game every season is diminished, so the strategy of selling games for a one-time revenue carries less value because volume drops. One strategy to explore with volume drops is to up-sell current users to increase customer lifetime value (read: make more money off the people you do have).
In-game monetization is overdone:
- Ads: monetize eyeballs by advertising movies on virtual jumbotrons, let brands sponsor half-time breaks, have player accessories made by Nike.
- In-game currency*: unlock game elements by either earning coins through playing a lot or simply buy coins with real money. You win on engagement or win on monetization in either case.
- Game mode: FIFA Ultimate Team (FUT) implements ‘resource-based’ gameplay to model real life. In leagues, a player has limited games on contract, they need training to improve performance and doctors to stay healthy. In FUT, you get resources for these needs at random, not from a Sheikh. You can’t have Messi injured for a big game, so you buy a doctor to get your star healthy.
*Be careful about what’s locked, don’t lose users in favour of revenue. Experience can be ruined or chaotic if certain features require purchase or if too many currency touch points exist. Miniclip’s Soccer Stars exemplifies what not to do.
Here’s an idea: let’s go back in time a few paragraphs to when games were an ecosystem entry point. Stay tuned for part 2.
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