Vili Lehdonvirta, member of Live Gamer’s advisory board and economic sociologist at the Helsinki Institute for Information Technology was recently featured in Newsweek. In an article titled “Why Behavioral Economics Love Online Games” David Lyons explores the booming business of virtual goods in online games like Pet Society, Farmville, Mafia Wars, Eve Online, and much more.
One interesting piece of data that Kristian Segerstrale, CEO of Playfish shares is that the company sells 90 million items a day through its 12 different games.
Lead economist of CCP, Eyjólfur Gudmagnusson is also quoted in the piece regarding his role in Eve’s Online economy. Both Vili Lehdonvirta and Eyjólfur Gudmagnusson recently shared the floor at GDC (Game Developers Conference) during Live Gamer’s VCON 2010 on the panel The New ARPPU Playbook, Cont’t. Dev-onomics: Economics 101 for Game Designers.
View Newsweek Article
Last week Live Gamer presented VCON 2010, a full day exploration of games-as-a-service and virtual goods. Among the presenters was William Grosso, Live Gamer’s CTO and SVP of Product who discussed The New ARPPU Playbook: What Safeway Can Teach Us: Applying Retail Strategies to Item Merchandising.
Bill’s point is simple. In an industry that is moving from subscription-based business models to micro-transactions based businesses driven by virtual item sales, why aren’t we adapting basic retail strategies in our games?
In Bill’s slide presentation he outlines tactics stemming from discounting, promotions, buy-one-get-one-free, and other strategies that are simple and easy to implement (at least, if you’re using Live Gamer Elements), to drive revenue that doesn’t involve changing gameplay.