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Freetoplay.biz has raw notes taken from the session on Designing, Balancing and Managing a Virtual Economy. Some good quotes include:

On inflation:

Gaia

  • did not manage economy when they started
  • want ppl to earn quickly for initial wow experience
  • down the line, someone who has been playing for months and months get really rich – what is left for them to buy?
  • need to manage these disparities correctly from the beginning
  • company has one full time economist balancing it

3 Rings

  • don’t screw up
  • mudflation – overinflation of currency is easy to introduce if you are not being rigorous about sources of attention currency
  • need to have some level of instrumentation… need to pay attention and be set to react when something goes awry
  • it is a discipline that is tough to master

On creating one time currency sinks to battle inflation:

3 Rings

  • incredible opp to take fantastic amounts of wealth and turn it into a one-time exclusive item
  • when we shut down alpha server we challenged people to throw Pieces of 8 into a hole… winning group got their name on top of a list

Gaia

  • we wanted to redo our amazon-like stores within the site, so we created a fiction inside Gaia that stores were getting shut down because of recession… asked users to help donate to help build higher quality stores… we created a concept of leaderboards… where largest donating teams got their names in lights… they felt as though they were getting status within the site

On pricing and maximizing ARPU:

Nexon

  • you want your players to spend all the money they have so they need to get another payment card, etc
  • you should offer your players lots of diff ways to spend their money
  • players are not buying 1 item at a time… they are batching… buying $10 of virtual currency at a time… so you need lots of options for purchase so people don’t have money just sitting there

2 Fish

  • i love pricing… counterintuitive in some places
  • barrier pricing… i.e. everybody wants one of the cooler cars
  • initial thought is that cars should be expensive
  • but really they should be cheaper as they are a barrier item
  • once they have a new car they can spend more on customizing it
  • think about what kind of behaviours you want and price to encourage that

Nexon

  • we actually do sell cars for $10
  • we sold 120,000 cars for $10 apiece
  • agrees re: barrier
  • but barrier for ppl in game is not 10c, but $10 for initial payment… so you need enough items to justify that
  • if you have 100 ppl playing game, what % are going to pay and how much
  • what items can you create to get to a $15 ARPU

Gaia

  • we do exactly that re: modeling an ARPU
  • interplay between getting ARPU up vs getting percent of people who pay up
  • clearly they should be complementary
  • but fascinating thing is that we are not really clear on which one matters more, we go with what is easy
  • getting dollars per player up is always easier
  • people who want to pay are willing to pay a lot of money
  • relatively easy to find small % of ppl who pay and pay
  • more interesting thing is how to get a higher percent of ppl to pay
  • that has more ramifications on long term business health
  • barrier is getting the money into the game via cc or payment card

On dual currencies and managing fraud and chargebacks:

Gaia

  • we need to be clear… if you can get your money out, then it is a big issue
  • SL has a currency where you can invest your time and get it out in real dollars
  • as soon as you do that, you can run into regulation issues, but more primarily, people will try to game the sytem… bots, farming, etc
  • if you are going to go down that path, plan on having half your dev team working on managing exploits for the next few years
  • you have then become the best target for money laundering
  • we chose not to do that… greatly simplifies life… branding decision as well – is your site a place where you can spend time and earn money? a career? or is it a fun experience where you put in your money but don’t expect to get it out

Gaia

  • ways to avoid hitting the 1% chargeback
  • not allowing you to purchase on day 1
  • maxing the amount ppl can spend in a month
  • making sure ppl can’t pull money out

3 Rings

  • we hit chargeback problems … we hadn’t switched on address verification… turned it on and problem went away
  • WoW has big chargeback isseus as people farm on stolen CCs

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Interesting research noted at Inside Facebook on how different generations use social networks. Most interesting chart to me shows that Gen Y (15-29) and Gen Z (13-14) use Myspace more than Facebook.

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I didn’t make it up to Casual Connect this year, so have been scanning the blog writeups. It sounds like Jim and Greg from Kongregate had a great session about some of the Fatal Flaws of Flash Game Design.

Adrian Crook notes that game plays are not as long-tail as expected:

  • 1st game – 12m plays a month
  • 2nd game – 10m
  • 20th game – 2m
  • 60th game – 1m
  • Top 1% – 50% of playtime
  • Top 10% of games – 90% of playtime

This won’t be a surprise for most game designers – it turns out that quality matters!

Greg from Kongregate posted his own notes, summarized as:

#1 You’re Making a Game, Not a Homework Assignment (i.e. start with the fun in the game)

#2 Ask the People Who Matter (i.e. get strangers to play test, not just friends)

#3 “Controls, Controls, You Must Learn Controls” (i.e. no one reads the instructions so make controls intuitive)

#4 Calling Your Game Art/Hardcore Is Not an Excuse (i.e. making your game difficult to use or play is not a good idea)

#5 Start from the Bottom Up, Not the Top Down (same as #1)

#6 Focus on Your Strengths, Not Your Weaknesses – Don’t Try to do Everything (i.e. make sequels, clone your own successes, and don’t try to be all things to all people)

#7 The Player Does What’s Efficient, Not What’s Fun (so make sure the efficient way to play to win is also fun)

#8 Show That You’re Human (i.e. funny is good, and don’t kill yourself on graphics)

#9 The Final 10% is Most Important (i.e. launch the game, not the beta). This last point is worth quoting more extensively from Greg:

When your game is technically done, there’s a tremendous urge to release it immediately. It’s like finishing a book report and not wanting to proofread it. It’s done! I can turn it in! I can be finished! The light is here!

But resist it. The final 10% of polish is by far the most efficient use of your time, even if it’s the most annoying and feels the least productive (since you’re changing things rather than building them).

But its importance cannot be understated. Maybe the boss on level 1 has too much health, and 40% of the people who play your game give up at that point. Five minutes of tweaking a health number could have been the best five minutes of time you ever spent in your entire life.

Don’t forget to add the little things! Having a mute button (separate for sound and music) and an intuitive save system will go a long way in making players like your game (or, more accurately, in preventing them from hating it).

Play your game. Play it again and again and again. Get others to play it. Get their feedback. Tweak, tweak, tweak. Continue polishing and ironing out bugs. Don’t be afraid to cut something out entirely if it’s not beneficial to the game – yeah, I know, you already put the work into it, but the player doesn’t care how much work you’ve put into it. If something is there that’s not fun, it simply shouldn’t be there. There is no advantage to your game being big and long purely for the sake of being big and long. Again, it’s not a homework assignment.

While I agree with this last part, I think that launching the game with good analytics built in will help you do this tweaking with real player feedback.

Erin Bell at Gamasutra has a couple more notes

Don’t Expect To Be Paid By The Hour

The Kongregate duo added: “Developers are shocked when they produce a game that they’ve been working on for four months and they only get a $1,000 or $2,000 sponsorship offer on it.”

“The thing is, no one really asked them to make this game. It’s something they did on their own, and reverse logic doesn’t really work when you try to break it down by the hour. It doesn’t matter how long you spent on the game, it’s the final product that matters.”

Don’t Equate Length With Value

A lot of developers feel like they need to have a long game, which makes sense if they’re trying to sell your game for $60 on a console, but not so much for a free Flash game, according to Kongregate.

The Several Journeys of Reemus series, for example, was a successful game on Kongregate, but most of the negative comments focused on its unnecessary length. The final level in particular, which was extremely repetitive, drove people crazy. When McClanahan asked the developer why he had made the final level so long, he said that the game would have been too short if he hadn’t.

McClanahan contrasted that example with You Have to Burn the Rope – a game that was one minute long to play, but has an average rating of 4.02 (out of 5) at Kongregate.

On this point, I hold more with Dan Cook’s view that the way to break out of the $1-2k/game mindset for Flash Games is by integrating virtual goods as the business model. Usually a players willingness to spend money on virtual goods is correlated with their level of engagement. This means short games (unless they are replayable) are unlikely to be able to get users to open their wallets. Equally, games that are long for the sake of being long (and lose the fun) are also unlikely to be able to get users to open their wallets as well. Long play sessions driven by fun are the most likely to be able to make the jump to a more lucrative virtual goods driven business model in my opinion.

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Fred Wilson recently posted about the importance of SMS as a mobile interface, saying that in the debate between web apps and mobile apps on phones, you should not ignore the least common denominator, SMS.

I believe that Twitter’s

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Sunday’s New York Times Week in Review writes about the power of the brand as a verb:

Perhaps nothing better illustrates how far behind Microsoft is in the search engine wars than a recent comment by the company’s chief

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Dan Cook has a great post about business models for flash game developers over at Lost Garden. He says:

Ads are a really crappy revenue source
For a recent game my friend Andre released, 2 million unique users yields

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AdAge has a good article today about how AOL has been attacking web publishing where it notes:

In the heady days of early 2000, the megamerger of AOL and Time Warner heralded the web-based future of publishing. It would create

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I moderated two panels at the Social Gaming Summit 2009 today. The first was about building social games at scale and featured the CEOs/COOs of the top three social game companies; Mark Pincus of Zynga, John Pleasants of Playdom and …

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Worlds In Motion plays Mafia Wars and compares it to other web based massively single player games, including ForumWarz, Kingdom of Loathing and Urban Dead:

There are plenty of other MSOs … but the successful ones all have

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A couple of years ago I posted about how improving copy is an easy way to increase user interaction. Bokardo recently posted on a similar topic, about how microcopy can improve your user interface:

Microcopy is extremely contextual…that’s

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