Overcoming the monetization challenge in freemium online games

Purpose: Online games based on a freemium business model face the monetization challenge. The purpose of this paper is to examine how players’ achievement orientation, social orientation and sense of community contribute to willingness to pay (WtP). Design/methodology/approach: A multi-method study of an online game community is used. Interviews and participant observation are used to develop an understanding of social and achievement orientations followed by the development of hypotheses that are tested using survey data. Findings: The findings indicate that a sense of community is positively related to WtP, whereas satisfaction or dissatisfaction with the service provider is not. The authors examine the moderating role of players’ achievement orientation and social orientation and find that while a stronger connection to the community may encourage achievement-oriented players to pay, the opposite is indicated for socially oriented players. Practical implications: Decision makers need to understand that not all players are potential payers; while socially oriented users can help to maintain and grow the community, achievement-oriented players are more likely to pay for the value they extract from the community. Originality/value: While communities are held together by people with common interests, which intuitively suggests that WtP increases with the strength of connection to the community, the authors find this only applies in the case of players with an achievement orientation. For those with a social orientation, WtP may actually decrease as their connection to the community increases. These perhaps counter-intuitive findings constitute a novel contribution of value for both theory and practice

Gamers' Reasons for Purchasing Gaming Virtual Products: A Systematic Review

With the development of the gaming industry, the trend of gaming virtual goods consumption is gradually growing, and online gaming goods consumption has become a hot topic. Players spend a lot of money purchasing virtual items. Why do people buy these items? Therefore, we conduct a systematic literature review to investigate the reasons for purchasing virtual goods in games. We use the “The Preferred Reporting Items for Systematic reviews and Meta-Analyses” (PRISMA) statement to guide the data collection, analysis and reporting project for the systematic review. This article obtained 37 papers from the Web of Science (WOS) and Scopus databases. The article covers research during the period 2013-2023. We review the independent and dependent variables, research methods, theoretical background, and findings involved in the relevant literature. The study finds that the "enjoyment", "social attributes" and "functional value" of gaming products often play a key role in consumer purchases at certain times and among certain user groups. It is the hope of this paper that these findings will increase gaming companies' understanding of what drives players to purchase virtual items. Game designers can grasp the needs of game users and better convert ideas into payment points so that game companies can get higher profits

Simusoccer App: business plan

National regulations introduced in Portugal in 2015 impacted the online gambling market (betting real money), closing sports betting websites and, consequently blocking players from online betting. The research aims to investigate the potential of the launch of a mobile app (SimuSoccer) fully dedicated to recreational gambling (not betting real money) on football results, not violating 2015’s law. The methodology adopted qualitative and quantitative measures, through structured questionnaires, based on 151 respondents. The research explores if there is a market of consumers driven solely by the pleasure of playing in a fan-loyalty relation with player’s favorite leagues and clubs, instead of betting real money. The key conclusions suggest a window of opportunity to launch SimuSoccer as a viable risk-free game app - following the freemium business model - while taking advantage of users’ [apparent] preference for interface’s intuitiveness, football exclusivity, and fanloyalty- gaming approach

Monetized Gameplay: Analyzing Commodification in Rainbow Six Siege

Game studies scholars have had growing concerns over the last decade about monetization strategies in video games. This major research paper expands on this conversation by analyzing monetization in the case of Ubisoft’s Rainbow Six. The paper explores different commodification strategies such as platformization, assetization, gamblification, and data extraction as well as monetization devices such as the battle pass and loot box. By applying elements of the app-walkthrough method to Rainbow Six Siege, this project concludes that previous efforts to regulate monetization in video games ought to recognize monetization systems’ deep integration with gameplay. Monetization strategies, I argue, overlap with and shape gameplay. Moreover, rather than approach them as separate, I suggest that monetization and gameplay are mutually constituted. The paper draws on game news sources to support the analysis of monetization systems. Ultimately, this MRP reveals: 1) that gamblification is not a discrete practice that only exists in the Rainbow Six Siege’s menus, but is embedded throughout the game; 2) that keeping the player engaged allows for data capital to keep being extracted; and 3) that Rainbow Six Siege places the onus of responsibility on the player and makes monetization seem as if it is a gift

Why Purchase Premium in Freemium Online Games: The SelfDetermination Theory Perspective

After the rise of the freemium business model, the video games industry emerged as a popular source of entertainment in Malaysia. In this modern free game model, virtual content trading is considered a great source of revenue generation for game developers and publishers. Millions of players around the world participate in this activity and purchase virtual items. In this study, we focus on exploring the motives of Malaysian youth for purchasing these in-game virtual products. By employing purposive sampling, qualitative data were collected by means of conducting in-depth interviews with game players who purchase virtual products. This study explored seven important factors: the desire for uniqueness, the desire for dominance, the desire for skillfulness, social interaction, the desire for freedom, social affiliation, and enjoyment, which strongly influence Malaysian players’ behavior toward in-game content consumption during video game playing. Gamers and game developers can benefit from the findings of the present study to customize the in-game virtual product design strategies as per the expectations of respondents. Keywords: free-to-play, video games, freemium, virtual purchasing, purchase intentio

DYNAMICS OF SUCCESS FOR MOBILE GAMES: THE CASE OF EARLY-STAGE STARTUPS

The competitive mobile app markets along with the lack of business experience of mobile app startups has created many challenges for startups in their efforts to create a viable business through developing and publishing apps. In this study, we collected data from 20 international mobile game startups that were working on their first commercial game with the aim to develop a successful game as the first step toward a successful business. Through a classic grounded theory methodology, we developed a theoretical model. Our model depicts how startups work with three requirements of visibility, quality and user engagement toward success while enhancing each and every one of the requirements through online and offline social interactions with various members of the mobile ecosystem. Our study contributes to the existing literature on mobile app development and the interactions of startups with the platform owner, users, and their games artefact, particularly by highlighting how the startups leverage the social aspects of mobile app platforms for success. It also contributes to the knowledge on business creation in startups through explaining the fundamental factors that early-stage mobile game startups consider in their work on mobile platforms to create a successful business

Game Production Studies

Video games have entered the cultural mainstream and in terms of economic profits they now rival established entertainment industries such as film or television. As careers in video game development become more common, so do the stories about precarious working conditions and structural inequalities within the industry. Yet, scholars have largely overlooked video game production cultures in favor of studying games themselves and player audiences. In Game Production Studies, an international group of established and emerging researchers takes a closer look at the everyday realities of video game production, ranging from commercial industries to independent creators and cultural intermediaries. Across sixteen chapters, the authors deal with issues related to labour, game development, monetization and publishing, as well as local specificities. As the first edited collection dedicated solely to video game production, this volume provides a timely resource for anyone interested in how games are made and at what costs

Solving chicken and egg dilemma in online platform startup: value proposition in focus

Objectives Over the last decade, platforms have disrupted the way that brick and mortar businesses usually operate. Their success is phenomenal with striking example of Ebay, Google and LinkedIn but their failure rate is admittedly high as well. The ultimate benefits of such business depend largely on the interaction between multiple sides of the market through a common platform. How to drive initial liquidity to the marketplace and get both sides on board (chicken-and-egg dilemma) is the very first challenge to any platform startups. Addressing the gap in extant literature which neglect the importance of what values perceived by sellers and buyers during the user retention process, this research aims to design a benchmarking system with value proposition in focus that will assist new platform owners in realizing the parallel measurements of success and picking up the best practices to solve the chicken-and-egg dilemma. Thus the study focused on the following research questions: (1) What are different types of e-marketplace based on its value proposition to buyers and sellers? (2) What are effective strategies and business tactics to overcome chicken and egg problem in each type of e-marketplace? Methodology The research utilized qualitative multiple case study approach to help yield rich data on such complex research structure. Three case companies were selected based on criteria obtained from literature review, taking into consideration its availability of data on studied topic. The data was mainly collected from companies’ resources, reputable media discussions and academic analysis. Narrative approach was deployed to analyze available information. Findings The research findings categorized platform businesses into three categories: Growth Platform, Value Added Platform and Innovation Platform. Each of these platforms corresponds to a set of business tactics and strategies that help it to overcome the chicken-and-egg dilemma. Regardless of categories, the three cases used a combination of strategies and gave high priority to testing out its services with marquee users which is in agreement with the lean methodology that has become popular among startups as well as incumbents towards innovation. In addition, the result showed that platform transition is possible between the three categories in different phrases or expectedly with different values brought to users

Startup dilemmas - Strategic problems of early-stage platforms on the internet

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