Acclaim to make $30m in revenue from free to play games this year June 24, 2008Posted by jeremyliew in business models, freemium, games, games 2.0, gaming, virtual goods.
Howard Marks spoke at Paris GDC today, and Worlds in Motion has a writeup, including quotes from Marks about key stats for Acclaim’s free to play games:
For example, profitability is often measured through average revenue per user (ARPU). “Most of the time ARPU is $30-$40 a month,” said Marks. “A month! Not just one time.”
“The next thing is percentage of uniques,” he continued, defining “uniques” as players who spend money on a given game. “We’ve found in Asia, in Korea, we’ve found that 10% of people will spend money! I think it’s great! In the United States it’s less, more like 5-10%. But we’re getting there.”
The average lifetime for a player in the free-to-play space is 3-4 months per game, less than what is generally expected for a more traditional subscription MMO.
That statistic leads to churn rate, which describes player loss per month. “It turns out you lose a lot,” admitted Marks. “You should be prepared to say, ‘I only brought in 100,000 players this month, but only 10,000 stayed.’ That’s okay! That’s okay. Some of them will come back, and you can always get more.”
He also says (according to Worlds In Motion) that Acclaim will make $30m in revenues this year and break even on their core games business, but is investing heavily in R&D. Those are great numbers, and certainly place Acclaim to the front of the pack for free to play publishers in the West.