Game Design, Programming and running a one-man games business…

The entrepreneur/cautious war inside my head

Ok, I admit it, I wanted an excuse to type war inside my head. But there really is one.

There is half of me that looks at the games industry, and Positech, and Gratuitous Tank Battles, and reads books on how big big companies (google, amazon etc) got where they are, and thinks:

“We are literally INSANE if we aren’t taking at the very least a third of our profits and throwing them madly into expanding the business by way of advertising spending, promotional activities (conference appearances and promo stands etc), stuff like T-shirts and posters and hiring a proper PR agent to grow the public awareness of the company,

The other half of me thinks:

“Those ads are not converting at a rate that makes any economic sense. It’s money burned. Plus this partnership with X or Y is not as profitable as if I did it myself, plus I can do all my own PR, plus we live in turbulent economic times. If we have $X in the bank, we should definitely leave it there, as an insurance policy against having a really bad year. better safe than sorry”.

It’s a constant battle, which means that my google adwords budget can swing madly from £150 a day (first half of brain is victorious) to zero (second half is winning).

My pet theory is that a lot of entrepreneurs I admire (Jeff Bezos, Duncan Bannatyne) just don’t have the second part of the brain at all. They see no downside, no need for caution, no possibility of failure, and never consider the companies money to be for anything other than growing the company.

Maybe that last sentence is the true key. is positech’s income mine? In a legal and practical sense, it is. But should I stop thinking that it is, and think of it as positech’s? Maybe if I did, I’d be free-er with promotional stuff, and spending in general. I could tell you amusing, fairly embarrassing tales of the stuff I’ve done on my own (badly) because I was too cautious to pay what amounts to quite small amounts of money to get other people to do it.

I may experiment with the idea of thinking that positech and me are different things. Ommmmmmmmmmm……

Indie game advertising strategies

If you are a lone-wolf indie game dev, you probably don’t spend ANY time thinking about grand strategy when it comes to advertising. Don’t worry, I think about it enough for both of us :D

Which strategy works best for you, really does depend on your game and your overall business model (paid-app, DLC, micro-trans, subscriptions…). However, there might be some benefit to brainstorming different approaches…

#1 SCATTERGUN

You advertise EVERYWHERE, on different ad networks, with different ad types (text / image / video…) you try print ads and newsletter-mentions, sponsored blog posts, etc etc. Then, you look at the data and pick the one which converts the best. Problem is, with 20 different advertising approaches, you need to spend at least $20,000 to get anything vaguely usable in terms of stats.

#2 CHERRY PICKING

You set up your ad campaign to exclude almost everyone. Nobody above a certain age, nobody from countries that aren’t buyers, nobody on a platform that isn’t your target, nobody at the end of the month (broke) or when they are at work (9-5), nobody that isn’t on one of the hand picked websites that you think best represent the people who will buy your game. You then bid some silly amount like $1 a click, to make sure you get those high-converting visitors.

#3 PRODUCT PROFILE

You don’t care about clicks. You engineer things to get the lowest CPM (impression cost) you can. You definitely let google show the same ad to the same visitor ajn infinite number of times. Your ads don’t even really say much, they just have your logo as big and as bold as possible. Nobody will click them, and you don’t care. You just want name recognition for when your game is in a list on steam, or mentioned on kotaku, that makes people pay attention.

#4 THE SUBSTITUTE_REVIEW

You realise that nobody has a clue what sort fo game your’s is, or what you do, or how much it is, or that it’s on sale, so you concentrate on fitting all this information into BIG ads and plaster them all over the place. It doesn’t matter if sites won’t cover your game, because you can force your name onto their front page using your ad dollars. For added effect, you set up streaming ads to play video of your game.

#5 BARREL SCRAPAGE

You bid hilariously low on a huge number of ads, knowing that now and them, you are the only bidder. Your ads run for some laughable price like $0.01, and the traffic isn’t targeted at all, but given the amount of visits they generate. you figure that you are playing the law of big numbers and all will work out. When you are selling a cheap game, this may work for you, because you can’t pay $1 for a visit when your game is $2.99.

#6 COLLECTIVE BARGAINING

You don’t advertise your game, but your site, with all 10 games you have made. For added impact, you affiliate some other indie devs games and suddenly your website looks like steam. An ad may well bring a disinterested clicker, but now he has ten opportunities to be interested, and you might suddenly be able to afford a higher cost per click. (This is the basic principle behind when I’ve run ad campaigns for www.showmethegames.com).

amusing ad break…

I don’t know which of these strategies is overall the best, but they are all worth considering, if not necessarily gambling $20k on :D

Humble Store

I’m experimenting with using the humble store for my direct sles, on two products: Gratuitous Space Battles, and the GSB collectors edition. The buy page, for those interested, is here:

http://positech.co.uk/gratuitousspacebattles/register.html

I’m still using BMTMicro there for my credit card payments. I’ve been with BMT a long time, so it would take a lot to move me, but I know that the humble bundles are very popular and I’m guessing there are a lot of people out there who ‘trust’ the humble store as a brand, whereas they may not have encountered BMTMicro before.

In any case, it’s an experiment to see if it affects sales up or down :D

Also… Patch 1.009 for Gratuitous Tank Battles has been released. Here is the changelist:

1) Fixed crash when attempting to save out a unit that had a * in the name.
2) Setting windowed mode, whilst also matching your desktop resolution will result in borderless window mode now.
3) Game now explains to player that they won't see any challenges until they are logged in.
4) Online challenge browser now shows complete two-line descriptions rather than cropping them at one line.
5) Fixed bug where the game would hang sometimes on playing custom or online maps as defender with 'scenario units' where a small number of units was included.
6) Fix for occasional crash bug on saving units (in some circumstances)
7) Fixed bug in non-steam version where the default sample units could not be deleted from within the game.
8) Balance:Laser carbine cost up from 3 to 5.
9) Balance:Heavy Pulse laser damage up from 6 to 8
10) Balance:Rapid Pulse blaster damage up from 4 to 5
11) Balance:Light pulse laser damage down from 9 to 6
12) Balance:Salvo interval for incendiary rockets up from 300 to 2000
13) Balance: Heavy Missile Rack damage down from 68 to 52
14) Balance: HEAP Missile thrower fire interval up from 1400 to 1700
15) Balance: Light Missile launcher damage down from 38 to 31
16) Added new map : campaign map 12.
17) Fixed bug where sorting by class on the unit design load dialog sometimes did not work entirely.
18) Balance: Changed the difficulty of a number of scenarios.

More fixes and improvements to come…

Gratuitous Ad Campaign

People tend to keep this stuff to themselves, but I’m not really sure why, unless you are WPP or Saatchi and Saatchi, worried about the competition…

Anyway, I’ve been running a few ads since the launch of GTB. The game is on big name portals such as steam, which is where it gets a lot of visibility, but I don’t think there is any harm in promoting the games website direct, my company, and the idea of direct sales.

My ad campaign has been fairly low key so far. I have exclusively used google adwords as my ad provider in this case (I’ve used other companies for other campaigns, but adwords seems to be a good ROI).

The ads have been running for 4 days so far and the stats are:

446,851 impressions
901 clicks
Average cost per click: £0.15.
Traffic bounce rate: 71%
Ave visit duration: 25 seconds. (vs 1 min 09 for all traffic)

Interestingly that makes for a cost per thousand impressions (CPM) of £0.30.

Even given MUCH better quality traffic, that’s why I laugh at the CPM prices quoted by many big name sites.

I can’t help thinking that the scale of my ad campaign is laughably small so far (I might double it right now…) and that the average visit duration is really low. Roughly 10% of my adword-sourced visitors spend >60 seconds on my site, which I consider to be a fairly good quality visitor. That means £1.50 to get a good visitor that way, which seems pretty poor, if you consider they still might not buy the game (although they may still mention it to others, or buy it later).

However, comparing it with 2 other recent ad campaigns shows me that adwords certainly beats them, in terms of price-for-quality-visitor.

I’m definitely going to go double my daily ad spend…

Free or not free? The debate

Over the course of a loooong time, me and Nicholas Lovell from gamesbrief, argued about whether or not free to play games are the bright new future of gaming. I am traditionally against the current implementation of F2P gaming (although I’ve softened on this a bit). Nicholas is traditionally very pro. See who you found most persuasive in our little debate…

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Nicholas,

FreeToPlay is not the future of games, or at least I hope it isn’t. The entire business model is built upon cynicism, mainly the idea that players will think they can play game A for free, as opposed to game B which costs $30. We both know that someone, somewhere has to pay for the game’s development, and for that idea to work out, you either need to hook some ‘whales’ who pay out a fortune and subsidise everyone else, or you have to constantly nag all of the players to pay for in-game items.

Either way, the business model will lead to design compromises that do not exist in any other artistic medium. A writer or movie director can compose a piece of entertainment safe in the knowledge that the customer has bought into the idea of the entire work. Imagine the impact if the audience were asked every chapter or scene to pay a few pennies to access the next part of the story.

We wouldn’t tolerate free-plus-microtransactions in other media, why should we tolerate it in gaming? Free to play is nothing more than the new version of a very old idea, the free demo. The difference is that with a free demo, the understanding is you then make an honest pitch for the player to purchase the game at the end of the demo. The F2P model seems to rely on interrupting the player mid-game to constantly pester them for a few pennies.

How is this a better business model?

Cliff Harris, Positech Games

* * *

Cliff,

You start by making the mistake of thinking that all users love your work equally.

The idea that all users should pay the same price for a piece of entertainment, however little or much they enjoy it, is a bizarre concept born out of the limitations of physical media. In the old days, when there were no bits and distribution was exclusively by atoms, content creators had
no choice but to fix the price. It was the only way to sell an entertainment product via retail stores. The consequence was that a superfan who loved that game would get hours of incredibly cheap value. A user who found after a few hours of play that it wasn’t for them was, in effect, subsidising the heavy players.

Free to play changes all of that. It lowers barriers to entry, which means people can play and enjoy the game while they work out if they want to spend money on it. It enables people to play the game for ever, for free. As long as the player is playing, the creator has the chance to say “hey, you’re
enjoying my game. Here are ways that you could enjoy it for more, by spending some money with me.”

It’s more honest (because it allows players spend according to their level of engagement with the game), it is cheaper (because you build a title for continued play, you don’t have to spend all of the development and marketing budget prior to launch) and it is more profitable (because you let those who don’t want to pay play for free, while allowing those who love the title to spend much more than the initial price).

What’s not to like?

PRESS SPACE TO TAKE YOUR TURN

Nicholas Lovell, www.gamesbrief.com

* * *

Nicholas,
I accept people are prepared to pay different prices for games, but this is why we have collectors editions and DLC. I don’t accept that we are just being shackled by the physical properties of the medium, because that also applies to books and movies. They capture the whole audience by having
hardback or signed copies, and DVD specials with extras.

This is all fine. I have no problem with extra content being made available after a product is complete. The difference is that you are advocating designing the game around such a business model from the start, which I think makes for an inferior product. Books may come as hardback/paperback, but you don’t have to pay extra to get all the characters, that would be mad, yet it’s how F2P games are being designed.

The other problem is that the game is no longer a shared experience or level playing field. I can now be shot by someone with a gun I didn’t buy, or outrun by a car with engines I haven’t bought. Games are about fantasy and adventure and getting away from the rat-race and treadmill of real life. Is
it not bad enough that MMOs feel like a second job, without importing all the envy and unfair competition from the real world too? Real world games would never allow this. Football teams don’t get more players if their team has more money, we accept that when it comes to games, it should be about skill, not bank balances. And as for barriers to entry, there are already none when the game has a free demo

Cliff Harris, Positech Games.

* * *

Dear Cliff

I think that we are coming at this issue from two different directions. I care about players, but I also care about the businesses that make games. After all, if it is hard or impossible to make a living from making games, fewer talented people will make fewer great games.

So I start from the premise that if the market is being changed by digital distribution and the immutable economic law that if the costs of making another copy of something trends towards zero, so does the amount that people will pay for that copy. In that environment, I think it will be very hard to keep the price that an end user will pay for a gamer at anything above very low (meaning iOS style prices). It is very hard to make a living at a price point of £0.69 for all but the very lucky. Even Rovio, often shown as the posterchild of iOS development, needed commitment and luck: Angry Birds was their 52nd game.

You’ve argued that you need to gross £100,000 (I think) to make a living. That means selling 145,000 copies of the game if the price is £0.69. You would need to sell 20,000 copies at £4.99.

There is another way. What if you can find a business model that allows people who love your game to spend more? If you design the game to allow those people who love what you do to spend a day’s wages over the course of a year of playing? In the UK, a day’s wages is £100. That would mean you
would only need to have 1,000 players who loved what you do to make enough money to live on.

Isn’t that easier and more attractive than trying to appeal to everyone in the same way.

How would that business model work? You make the game entirely available for free, so that people can play, explore and experiment in your world. You offer a way for people to spend £1. They may be able to buy aesthetic changes like personalised outfits, new skins or new buildings that don’t
affect gameplay. They may be able to level up faster, unlock items earlier than someone who plays the standard mode. They may even buy additional content (although in my mind, it is better to sell personalisation than content).

Then you need to make it *possible* to spend £100 per month. Not because people will (although some might), but because you want your biggest fans to have choice – about the personalisation, the status, the progress, whatever it is that excites them – and if they are *able* to spend £100 a month,
maybe they’ll spend £10.

A thousand true fans, out of perhaps 100,000 playing your free game, and you have an exciting business that is all about making cool new stuff that your biggest fans will love – and want to pay for.

That seems to me to be the best of all possible worlds.

Love

Nicholas Lovell, www.gamesbrief.com

* * *

Cliff says:

“Ah but here is the fundamental contradiction. You suggest that because stuff can be copied, it’s natural price is zero, but then you also talk extensively about ways to get money from people for games by other means.

Ultimately, it’s just a shuffling of payment from all gamers equally to a few wealthy ones, but the same amount of money is being generated. The ‘free to play’ games are clearly nothing of the sort, they are more like ‘patronage’ games, where some wealthy people who suffer from gaming addiction subsidise everyone else’s leisure time. An interesting way to do it, but not something that is being done in the interests of making games better. If your business strategy relies on milking a core group of hardcore wealthy addicts, then it means games get designed effectively for a small hardcore subset.

Besides, the popular ‘thousand true fans’ model doesn’t require micro-transactions and free-to-play, they are unrelated. You can have your thousand true fans who buy the game, without requiring them to be a subset of 100,000 casual players who value their playing time at zero.

 I could just about get by with a thousand true fans by selling them $30 games, and many people do exactly this, like spiderweb software and the guys making hex-based WW2 strategy games. There are many people out there happy to pay $20-40 for a game that they really like. It’s a myth that gamers will only pay $0.99 for a game, it’s just that those gamers are a very loud, shouty minority.

You can have your thousand true fans who buy the game, without requiring them to be a subset of 100,000 casual players who value their playing time at zero.”

Cliff Harris, Positech Games

* * *

Dear Cliff,

Of course you can get by with 1,000 true fans paying $30 for your games. The difficulty is in finding them.

Free-to-play games suffer from this discoverability problem too: they need to spend to acquire customers in the same way that traditional games companies have to market their games. The difference is that, because their games are free, they can get many more people into the game to discover if they enjoy it. They can play the game for longer – often forever – before the paywall comes slamming down. They can get their friends playing without having to persuade them to shell out $30. And when they find a true fan, they can make a lot more than $30, while offering things that the true fan values.

There will still be companies making money from games that are single upfront payments for quite some time. Most of them will have established reputations, while new businesses are more likely to start by assuming the free is the optimum price point for consumers AND for the company.

The important thing is that a wider variety of good games will have a chance to get developed than ever got developed before. I think that is something that we can both agree is a very good thing.

Nicholas Lovell, www.gamesbrief.com

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So who won? TELL US NOW!!!