Free-to-play monetisation – Surviving past the loot box

[Music] [Music] so yeah a couple of months ago I thought it you know the process of looking around like what am I gonna talk about and at the time it was November 17 at the time I'm gonna cover it but things are changed so much that I needed to add another topic so that all the top of it is Michael Knight drive a sausage I think those two things go hand in hand together and so you kind of get two presentations nutritionist welcome so hi my name is Jerry horn a little trivia book can't predict companies like use of

a law Dinoco and now I'm a vice president of strategy as John City may know us because we recently released a Harry Potter game I worked on it for a long time and I'm very proud of it please don't try it right but all those companies I've only gone though I'd Sanger those are my opinions about respect their opinion substance II meanwhile proposed an eighteen seems that the finally going to set the majority of the pie of revenue in the video game industry fifty one percent which is fantastic right but last November 2017 something happened you cannot cure and I respond right now from - I mean everybody remembers that like craziness happened all the blogs were writing about it the users was so mad was the most

reddit thread of all time I mean what a disaster people are so pissed off right and honestly I agree I think was a horrible tragedy it was so bad that even politicians got into it I mean it was about preying on children that it was gambling that it should be banned that there should be an alert on the boxes Hank careful there's a loot box inside yeah I mean that was that was pretty wild and it was much as well in the United States was wild around the world I mean in France in the UK Europe Belgium Netherlands Belgium started through push bills to say that whatever guy should be totally and absolutely banned I'm European as you can hear on his feet yeah it's like you know yeah I got choked like the full script at that time it couldn't do nothing but back out of

this situation today they said we got it wrong we are we looking you know the bosses the paid option yes still don't gain the game but now sold free I'm worried we're we're so sorry we paused to be better Wow we basically just no the point is disaster thank God Luke boxes will will never come back on on PC they'll never come back on console it's over its to figure out the past I think for shitty free-to-play mobile game us gamers were fine but you know makes 2018 like a lot of things happen but that's yes doc I mean you can see the drop right November December of last year three billion dollars is slashed today I mean I bought some stock at that time and I think today to be honest they've added put you $10 more than last year's performance fantastic and remember what they said we vow to do better we'll never good again

pushing forward that's great there's no Louisville game I mean I don't blame them and you know the legislative disaster none of the bills really moved forward nothing happened a lot of politicians used I think that type of situation poor and oppressed gathering a lot of attention either your usual UK they said nope the bosses are not gambling Netherlands actually did a full review reported it had four out of ten and sure the trick is that they found with boxes with items inside of them that are direct monetary value and can be transferred for the size okay and underlined of the reason why any Belgium and I love helping people but nothing happened and I suspect that nothing live around it something did happen not now

that they'll not at all just a guideline that change Apple said moving forward blue boxes need to disclose odds so here's the exact language apps offering loot boxes or other mechanisms that provide randomized virtual items for purchase must be closed because the odds of receiving each type of items to customers prior to purchase highlights one of the term which is type of items not that's very important as of now we don't to see even without what happened with all this rather than on the list and why because China is becoming or is the biggest market in the world and you have laws as of today horses to disclose the gravity tax on the website or inter-gang asked appalled Apple to just align with what's happening China it's not surprising and you know we got the added advantage of

the time that he kind of like allocated some of the backlash so here's really not making that change is that now you're getting these job loot boxes you need to disclose the drop rates only to disclose the items within ice our 5% post on that group you don't need to say the pine sword and ice are actually a lower rate it's another card that's not a tricky situation but you know that's up now let's face it it works really well they really enjoy it it was financially so it's going to remain in trigger play mobile games for the foreseeable future well that's gonna happen now the river is that you know the language is going to improve I think we roll and eyeball

are going to further align with the Chinese laws so much so that they're going to disclose each item of the law that passed absolutely recently in China that has been disclosed the item stem cells which i think is great I'm always in favor of conspiracy foreigners I think the one thing that is changing even outside of the scandal is dressed that way cause I've been on the rise so much and now the Quarian because users plus the rise of competitive mobile games are just both knives of chat fil it's trying to move mobile revenue from reliance guessing and randomness to relying on the tension features I know downstairs watching evil deranged watching everything blog trading my bread blockchain my in the ball okay my video game you know the trick remember when I said that you can't transfer an eye exam that you

acquired from a little box and that as my actual real value this is going to block a lot of this economy ball chains sure we're going to see no games on PC that are going to allow that type of economy but on mobile it's gonna be much harder and I doubt with the boy you can see blowing seceding mobile games and that's it you may disagree will put about player that's my contrarian view um so I do have a couple of prediction the first one is that we're going to new ways of monetizing one of them is going to be allowing players to modify yeah and I see I am the drop rates and the dropping of probabilities within each category I'm gonna be able to become a subscriber of the game and add the 10% chance for five stars blue boxes is for example we're going to no longer see boxes like a chess into the box little

blue boxes you can commercial we're going to move really away from that and we're going to see more and more new features that you know games like filled with

mysteries on a metric and long-term would not make so bold 9 original

building your fort and we're getting currency stupid boxes llamas I mean why is horrible and actually this is only for opinion what times what it was six miles and inside those llamas you had a tent and those items I can could break anyway I played it for like a week and I was like okay I bought the game I was good to my friends right so obviously we all know you know how the April night is what a big success but I think I'm like a lot of cancer that talked about about you know moving away from the boxes into retention futures so what's great about the battle path is that is accessible to any player is sweet because it's long as

it was when you level up but at any time at any tier you've been asked to level two you can convert it's only $10 and yes actually all of the items that are on that battle path that's great that's great because it doesn't end tonight playing it gives him like some level 17 compression what you know that every player's no need to spend you know a dollar just touch the model essential yeah I really like that and she's been watching better well is that it cost 950 bucks so the smallest package you can buy and you can lies because you should never ever ever leave your wallet and in that case

people think that's hair that you see I'm going to play more that's gonna give me 150 and I'm gonna buy something and that's what you always wanted then get some level in your mobile games I would advise to look into your wallet and zero actually yield higher revenue and this notion which is we're gonna see mobile as well it's fast tracking your progression so for $25 the multi level you get the premium at Alaska like an item like an additional skins but also in comp 25 years you just go faster what's the reason I think people are in a hurry they wanna make sure that idea of the season at the end of that time limited sequence they get everything and to get like a leg up customization I mean a lot

of kids do it now but I don't think they do it right and sheer boy fall kinda spring right one they're avoiding what is called decision paralysis you don't want our teacher they I think you need to call downloads offerings for players and all your participation options that are limited every day one more thing what I can do it because you see your opponent's you see what they're doing infestation insurable time you from like your head don't like our thoughts is that randomized routes are mates they're free to play mobile games and they will remain stable for the foreseeable future

the guidelines from Apple and Google will become more detailed overtime favor of the engine and that's it side effects of the

legislation particularly with the Netherlands and actually new parts of the UK as well which is the idea if you'll be selling items within those boxes and that's obviously you you say it was that would impact on the people you right now however all that means to me is those organisations which are looking to do resale of digital assets which is probably where everything is those organizations I think the remedy for that exactly pretty straightforward which is they probably have registered being a licensed and where they get licensed as gambling organisations or get licensed in some form with authorities which is something which we looked at before I remember back in the days of send me for example we were working with the team that worked with the station carries to resell EverQuest assets can be down on the hockey roller

my question really is is easy just becomes a higher burden so it is everything can be done right developers want to become certified will they wants to go through a financial organization internationally I mean yeah maybe you can do it I don't think that there's a ton of people that have the type of pocket change that will be needed to to do that and once again you without troubling teacher and President or even override on the challenge we're all starting to get installed so adding the struggle of not even being short dad we're going to be very I guess in general I agree is possible I think we're gonna see unity see a listing for mobile because of the way absolute riveted gonna see if and if you want a real life example of the company I love cold tablets they're a casino game company it took forever and

ever and ever for them to get authorized on the floor of the casinos index like years and years and above the organization kept on it which would then allow them to come around another boy unity publish so you worked on the Harry Potter AR game now so no oh well so I'll just asked out anyway so what do you think what is it there's like some monster who's choking a kid and then you paid five dollars to stop him or something that's been a controversy

lately but you have something to say about that I was not so while I am part of your game you mentioned pretension features a lot and you specifically mentioned multiplayer games multiplayer [Music] experiences I mean yeah look I see the

mobile competition right because of Technology we're at the right time I was like oh carrier a lot for like mobile data transfer the technologies longer we're gonna see more of that and all the digital natives the younger people will end up being used to mobile phones are getting accustomed to it what's going to see the same you know capital gains at solitaire previously looked at the rights of using asynchronous multiplayer as enacted which is a really interesting way of applying releasing play game making the syllables but it was interesting how much I had already particularly at home

I think about big flavors before I it's still valid in itself immerses changes were effecting nicely played it is little interesting I think when you look at basic increase oh I'm gonna be constant you've interested in subscription as a future possibility to increase the odds of a user getting like rare items for example is anyone doing this yet and that's it that's great so the follow-up question is what sort of subscription is this a paid subscription is this you receive

information you know frequently through email and there's no paid aspect to it so dragon is done by pocket Jen's wonderful company wonderful game and the subscription feature and you just become a subscriber of the games we take more a week a month a year and it was essentially past practical progress I really like that model I think it creates that feeling of community feeling of you know being a VIP evening powder of something so yeah the opening is I think I don't have it out receiver I think it's going pretty well when it comes like non-paid ever seen it but I like it I think we wanna keep things oh it's a model I've looked at a lot is you don't want to let people subscribe the whole game its key aspect of the game which had specific long-term

if you ain't know me you like we were trying to do full good game Akiko freeze they can't really fail because apologizing saying that will look like it they don't practice [Music] [Music]