You are at your desk, everything is clear in your mind. The new game mode should feature a new energy system which permits to spend energies in change of doing a whole set of special actions in your RPG. You can throw bolts, run away from fights, hit with a sword. All with this energy system.
Then the engineer writes you on Slack: hey, can you check this? You see that nobody understood the vision, so that check your documents. “Look, is all there!”. They didn’t read the comments under the flow, your document was too long to read. The leader of the project says it’s too late. And the leader starts imposing own design, without thinking too much. Discussions starts, but in the end the vision changes.
You update your documents.
Documents that no one, except from you and maybe QA, will read. Satisfied you will shut down your PC. And hope for the best.
There has been a lot of talk lately about the usefulness of video game fairs. This year at the most important fair in Brazil, BIG Festival, game designer Mark Venturelli confirmed their usefulness.
He envisions a show fully sponsored by new brands that have received massive funding to promote their pyramid schemes. Imagine seeing logos of brands that have never created a successful video game or console invade your spaces little by little.
This is where heroes like Mark Venturelli enter the scene. With the excuse of presenting a speech on the future of game design, Mark instead explained why NFTs are a nightmare. Explaining the obvious, but giving a pure game design base, our hero got a standing ovation.
I would love to build my own company, after many years serving many projects and teams. I have developed a vision, I feel I can somehow foresee part of the future.
I would like to focus on gameplay first short games. I would probably start from PC games. 3 months development, plus 3 refinements and then 6 months to see the return on investment.
I have everything clear, but I don’t want to stay behind burocracy, contracts and all the things. I guess I will have to, at some point of course. If I want to really put in place all the knowledge I had those years.
Don’t get me wrong, I am not a guru or something like that. I know for sure that I am wrong in so many ways. I just feel that in order to really grow more I need a period building something I really believe in, in a way I feel the best.
As Italian, I am a fan of the stories of Olivetti and other entrepreneurs like him. To me a company needs to improve the society where it is founded, in a meaningful way.
We want to create a new game, often times because we played one. So that we got inspired and somehow we want to make our own version of it. Maybe we are working for a company which spotted a market opportunity. So that we start studying the games belonging to that market, try to reproduce the best things.
Games industry is very endogamic. We tend too much to take inspiration from the inside of it. But if we see the best products out there, they take a lot from the outside and bring it to the inside.
Days ago I was talking about the TikTok of puzzle games. That is a way of looking outside. You just study the apps market and think in a better UX for some classic game. It often works like that. If you look at games like Royal Match, they took well known mechanics and the real twist is completely on the UX side.
Another great reference is nature. From nature many game designers created memorable gameplay experiences. Think in Japanese legend Shigeru Myiamoto and the story of how The Legend of Zelda was conceived. If you like to walk and you really start observing you notice that nothing in nature is wrong. Recent game The Ants: Underground Kingdom is another evidence of the power of nature. Especially if you want to get better ideas on gameplay and lore, nature is the way.
Art, toys and objects without purpose are also a great way of getting inspired. The history of videogames is full of examples like that. Think in the indie success GRIS or the mobile game Monument Valley. There is not a superhigh challenge, nor a specific deepness in their economies. The Players can just enjoy the overall game feel.
I am very outspoken and I work mostly remotely since 2017. Way before of the pandemic I was providing my game design services to many companies all across Europe. My specialty is game economy and gameplay design for free-to-play. Companies contacted me for three main things:
To set up the vision for some new project of their.
To review and design a new tutorial for their game.
To add more monetization features to their games.
My main tasks are always been to become aware of a certain context, study a specific market and provide concrete solutions. All of that online, by remote.
I remember back in the days when I had to wait for the producer to call me after the internal meeting. I wasn’t allowed to participate to their daily standup because they were too lazy to set up a camera and connect with me.
Then the pandemic came and this is now the new normal. Now most of my work is online, but the processes are still the offline ones. I mean, I didn’t saw relevant updates to the game development practices. And that’s a problem.
Game development has many moments, good and hard ones. Especially the hard ones, when you need to tell the others your truth about something are getting always more complicated. Sometimes you notice that things are just not working out. So you should take the courage and speak with your boss and colleagues about that. You can do it by writing on a “public” slack channel or by contacting the leaders in private and have a virtual face to face with them. Still, with the remote something is missing. You always have that colleague with stays silent most of the time. And most of the time that colleague is one of the smartest. But they don’t talk, so you will never know. And possibly then they quit for a better job. And you remember that you never asked them directly to express themselves during meetings.
The games industry is estabilishing its processes step by step. Year by year. You work on a new feature and you are constantly studying other games. How is that feature implemented there? Why?
Then you discover an article or a video and you see that there are best practices to do that. Maybe a colleague, maybe your own boss show you the best practice. Often time you discover the best practice AFTER you did your breakdowns, your wireframes, your flows, your brainstorming with your team.
Best practices are the best because there is nothing better, right? They are based on facts. On data. On results. On money.
The temptation with best practices is to just implement those, because someone already figured that out. Why reinvent the wheel?
The risk is design something without even understanding why it should work and how to measure its effectiveness. In the meanwhile, a new trend and best practice popped out. Your design is old, maybe you should iterate on that.
Best practices are those things that, when they are publicly available and well defined online, are already surpassed. So that those are just common practices waiting for a new best.
I have learnt this the hard way. Often, people like to make experiments. They hire people like me as freelancer and then they hire juniors fulltime. They want results, good results in possibly a short time. Then our collaboration ends, experiment failed.
Why is that? Because people hardly accepts the reality of games. Making games is a serious thing. You will never make a good game with people part time. You can use part time freelancers, like me, to create specific content for something that already works. But if you want to make a new game you need to really invest heavily time and energies in doing it. 100%. There is no shortcut.
I always speak this clear before with my clients “this is hard, it will hardly succeed. I cannot dedicate more than X hours per week. You need more.”. Nothing. They want always to try. And sometimes they get upset because of the results.
In this post I will try to explain the basics of the freemium economics, because without those is impossible to understand why free-to-play games have to rely on strict calculations in order to work and scale properly.
Costs
When you run a business you have costs, a f2p business has many costs that I can resume like this:
Installs: number of installs we want to achieve with our acquisition campaigns
CPI: cost per install. Each install will cost this
%FTD: first time deposit percentage. Basically, the part of Players that decides to invest something into our game
Team Members: our team is composed by…
Salary/Member: the cost per month of each member
Development Months: the number of months before of publish the complete game, ready for live operations.
If you are working right now in f2p you can notice that those numbers are VERY optimistic. Ad the end of this article I will propose something nearer to the reality. Another thing is that every company has its way of naming things, my approximation is just for the sake of explaining.
Cohorts
When you design a free to play game you should be aware of two things:
Vast majority of players (in my example 95%, but again it’s optimistic) never pays a dime
The payers have different spending profiles:
Minnows: they are the majority of payers and they invest just a little in your game
Dolphins: they are a big chunk of players and they invest a little bit more. Their spending habit is similar to PC/Console players somehow
Mermaid: they have a higher acquisitive power, and they decide to invest more over the time in your game
Whales: they are the real target of your monetization system. Without them, the f2p business is not sustainable. Here’s why:
You can clearly see that Whales are the vast minority of all payers (players that spend something). But:
With this configuration, you can see the weight on your revenue of whales and mermaids.
Results
In this perfect scenario, those are the results:
UA Cost: CPI*Number of Installs. We spent one million dollar just to get people into our game.
Team cost: Members * Salary/Member * Development Months. We spent six hundred thousand dollars to develop our game. Development costs are cheap compared to marketing.
FTD: we have fifty thousand people paying something
Revenue: according to the cohorts, the total revenue is this
RPI: revenue per install. Total revenue divided per number of installs.
Profit: what we really earn. The total revenue less the costs. In this ideal case, it works!
We don’t want to make games for whales!
Ok, let’s make a game that doesn’t permit whales to pay that much then! We believe that FOMO, pay to win and lootboxes are the evil, so that we put a maximum cap on our spend depth.
The cohort whales, then, disappears. Let’s say we just have mermaids, that will increment their presence among the cohorts:
In this case, the impact on revenue will be HUGE. Still, with the idealistic costs structure it works! we can have a business:
Diablo Resurrection
Lately, a lot of press is writing against the monetization of Diablo Immortal, the last game from Activision Blizzard. They say it’s too agressive, I have a different feeling. To me is not aggressive at all. Let’s study its costs.
The quality of this game is very high. But.. 15Gigas, really???
A game like that from a company like that will have a cost structure more similar to this:
I am completely biased here, please if you have more data let me know
With those cost structure, without targeting whales, the final result will be:
Why publish a failing game, right?
Which is why Diablo Immortal, because of its quality and narrative and everything it gives for free has to target heavily whales. This is for the vast majority of people to have fun. A possible cohort configuration can be:
For the whales to arrive spending ten thousand dollars, the spend depth of Diablo Immortal has to be high. Still, in this way our business barely works:
You work like crazy to earn $200k? I don’t think so.
So, I get that many of you don’t agree with f2p and don’t like this business model. But it exists and if you want to be there you have to do very well your math!
I have noticed in those years of carreer three main things that all successful companies share.
When we are joining a game company, many times we are just looking for a job. We study the companies and we look at their games. The most probable thing is working on a game that will not be successful. That’s a fact, there are statistics for that.
The first thing is that they have a great administrative department. They know how to keep the bills in order, how much the company is spending and what is the revenue. They are tracking their burn rate and the house it’s in order.
The second thing is that there is at least one person dedicated exclusively to quality assurance. Testing the game every single day, reporting bugs and creating processes to improve and automate the process of finding bugs. QA people save games. Games without QA will most probably just be bad games.
Ultimately, there is at least one person dedicated to community management and marketing. Games nowadays work a little like a service. Even a small indie game when published receives feedbacks and reviews and devs have to iterate inevitably. You need people dedicated exclusively to the sales, external communications and support.
If you are about to join a project with no QA people, or no administrative people or no sales/support/community people believe me: red flag! If it is your first project it may be OK according to its scope, but not expect quality, security nor players satisfaction.
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