Game developers like Zynga Inc (NASDAQ:ZNGA) were
ruling the roost with profits being made via in-game purchases and advertising
till the model plummeted from its peak, at Wall Street. This model has become
redundant because only a few big players are bringing in profits while a major
section of players are unwilling to spend.
However, Facebook Inc (NASDAQ:FB)
might have provided the perfect solution for game developers via its new
feature – in-game subscriptions. Users will be charged a recurring amount for
games, which will directly go to the game developers. In return, users will get
regular benefits like more in-game currency, advancement in levels faster than
other players, or tools to give them a better edge in the game.
A number of issues can be addressed thanks to
this feature:
- Wall Street will jump for joy because it is easy
to evaluate and predict profits from subscription.
- If a user is constantly reminded to pay up,
there are chances that he will give up playing. A subscription will prevent
this from happening. Moreover, if the model is designed properly and it clicks
with users, they will be willing to pay up in order to keep playing.
- Subscriptions will help to close the gap between different platforms like the Internet and mobile since it will work smoothly across both. Developers don’t need to come up with extra features for monetizing mobile.
The question remains as to which developer will
be the first to successfully utilize this feature. The rumors circulating state
that it will be Amazon, as it recently introduced its first game for Facebook.
Amazon is looking to venture into the world of social gaming in order to expand
its San Francisco
operations. However, executives from Amazon have not commented on this piece of
news yet.
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