hi5 presentation at sxsw interactive 2011: games of the future

Games of the FutureAlex St. John

The Shape of Games to Come

1. Production values secondary to gameplay, virality and monetization

2. Quality vs Quantity3. Design vs Evolution4. Marketing vs Virality5. Brands vs Play6. Asymetical Play vs Symmetrical Play7. Blended Synchronous and Asynchonous8. Delivered Online9. Monetized by Many Business Models10.Virality as Currency

Production Values Secondary

Optimized for:•Play Addiction•Virality•Monetization*The DRM Problem

Quality vs Quantity

Angry Birds Crush The Castle

Design vs Evolution

Emergent Game Design

Evolutionary Game Design

Marketing vs. Virality

Blah…blah…blah…blah…

Brands vs Play

Blended Synchronous and Asynchonous Play

Instant gratification = NO VIRALITYThus…

Asynchronous play is for marketing/viralitySynchronous play is for monetization

You need both!

Delivered Online! Duh!

• Consoles are DEAD • Boxed Retail games are DEAD• Brand marketed games are DEAD• Any game company that hesitates

to accept this is DEAD• Game delivery has moved online, it

HAS ALREADY HAPPENED! …all that’s left are a few ghosts in denial

The Quantum Economics Monetization Mantra

Deliver 100% of the play a consumer wants to consume in exchange for 100% of their value

•It costs virtually nothing to satisfy a consumer’s demand for play•If you don’t satisfy 100% of their desire for play they will satisfy the rest somewhere else…•There is a life cycle to monetization that you are designing to capture; that lifecycle is not linear nor is it the same for every player

Many ways to monetize

• Commerce• Advertising• Virality• Engagement

4 ways to pay for an online game:

Quantum Economics: Virality and Engagement can be transformed into currency

$$$ + Advertising =

Asymetical Play vs Symetrical playQuantum Economics Lesson 1: Quantum Teleportation of Value

Reward those who can’t be monetized for entertaining those who can…

Hint: They don’t have to be playing the same game…

What is the monetary value of MajiNoir to a social network?

Romanian hi5 Member•Commerce value: $0•Ad value: $.0001•34,199 friends…

Romanian hi5 Member•Commerce value: $0•Ad value: $.0001•34,199 friends…

Answer? •$238/mo in advertising•$162/mo in commerce

What is the monetary value of MajiNoir to a social network?

$0

I’ll pay $$$

I’ll pay $$$

I won’t pay

I won’t pay

Pay me money NOW!Pay me money NOW!

How Commerce Works

I’ll pay $$$

I’ll pay $$$

Would youlike to payus money?

-OR-

Get thisfor free?

Would youlike to payus money?

-OR-

Get thisfor free?

I won’t pay

I won’t pay

How Ads in Commerce Work

I’ll pay $$$

I’ll pay $$$

SocioPay knows the user will pay $25SocioPay knows the user will not pay

I won’t pay

I won’t pay

How SocioPay Works

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₵₵

₵₵

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$$

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How Does this Work for Me?

$$

$$$$

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$$$$

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Will

ingn

ess

to p

ay

Number of gamers

Commerce onlyAds in commerceSocioPay

$$$$$$

2x revenue>3x revenue

HI5PRICING HI5PURCHASE HI5MONETIZATION

SMART PRICINGSell to any player anywhere in the world – in local currency.

CONVERSIONBest converting payment methods. World-wide.

HYBRIDIZATIONMonetize every player. Increase revenue and engagement.

SOCIOPAYDYNAMICMONETIZATIO

N

SOCIOPAYDYNAMICMONETIZATIO

N

Dynamic Quantum Pricing

Advertising and commerce offers are blended dynamically to produce different “effective” prices for different consumers

even though all consumers percieve

the same price

Is this gift free or paid for?

Paid

Free

Gifts sent

+400%

+30%Commercerevenue

Total revenue

The Results

Commercerevenue

-25%

Important Future Game Genres

• Multiplayer anything• Sim• RTS• RPG• Puzzle• Strategy• God Games Social Collectables• Casino/Gambling (Inconsistent rewards

for consistent behavior)• Survivor Style Social

Why?

• Social• Lend themselves to asymetrical game design• Emergent content• UGC potential• Easily evolved• Based on core play instead of production value• Monetizable many ways• Many viral hooks• Lend themselves to real-time and turn based play

The Anti-Social Networking Solution