Train2Game News Survey on Freemium

EA logoAn EA-backed survey brings in a whole lot of new math to support the “freemium” business model and integrating advertising in games.

New data offers some pretty shocking predictions on the purchasing trends of the gamer population over the next few years. A study conducted among 500 gamers by IHS Technology found that 86 percent of players would rather have a free game, supported by ads and in-game transaction, than pay full price for the game itself.

IHS also predicted that micotransactions spent on “freemium” games will account for 39 percent of the total money spent on video games in North America by 2017. Likewise, mobile, tablet and PC gaming, where the majority of games using freemium business model are found, will account for 54 percent of the spending on games content by 2017.

IHS also forecasted that by 2017 only 10 percent of mobile and tablet games will earn their revenue through a paid download, reflecting how prevalent the freemium model will become at that time.

The study was conducted on behalf of Electronic Arts and WildTangent, a company that powers game services for different companies, including PC gaming sites used by EA. The games tracked in the study were EA freemium titles using “EA2/BrandBoost” technology, which featured in-game ads such as long form video, custom mini-games, and branded in-game content.

If a player chooses to interact with an in-game ad, they will usually be rewarded with a game item or, for games that only let you play for so long each day, additional playtime. The survey also found that gamers were more likely to play longer after experiencing an ad that gave them an in-game item.

The study also notes that gamer’s are more positively disposed towards an ad if it happens at the beginning of a game or during a natural pause in the action.

Train2Game news: 40% of freemium players make in-game purchases

Train2Game students are likely to be familiar with the rise of free-to-play titles, and new research suggests 40% of players will spend money on purchasing content. The majority of players who make payments will do so in their first month.

The report from NPD Group also suggests 84% of those who play trial versions of free-to-play titles will move on to play the full games.

“The majority of freemium gamers who opt to pay to upgrade their experience do so within the first month of playing a particular game,” said Anita Frazier, industry analyst for The NPD Group. “When designing a game, it’s important to consider features that would drive quick conversion to pay.”

“Males and those ages 18 to 34 are traditionally seen as a big part of the core gamer audience, so it’s likely these groups are not quite as engaged with freemium because the gaming experience is quite different from what they are used to from the games they play on consoles, handhelds or PC’s,” continued Frazier.

“At a minimum, for these gamers a freemium game would provide a different experience, like a snack versus a full meal.” she concluded.

Earlier this year, Brawl Busters developer Rock Hippo told The Train2Game Blog that free-to-play allows them to reach a much larger audience.

Various browser based and PC games use a free-to-play model, while formerly subscription based MMOs including Lord of the Rings Online, Dungeons and Dragons Online, Star Trek Online and, as reported by The Train2Game Blog, even Everquest are among those which have switched to a free-to-play model, each with a varying degree of success.

For the latest news on free-to-play in game development, keep reading The Train2Game Blog.

What are your thoughts on the percentage of free-to-play players making in-game purchases? Is it a model you’d consider using?

Leave your comments here on The Train2Game Blog, or on the Train2Game forum.