AB1 0.00% 18.0¢ abarta resources limited

Found CDH in Australian App store, page-80

  1. 131 Posts.
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    I see a lot of people very unfamiliar with how microtransaction based games work. Firstly, the majority of players do not create the majority of the revenue. You'll get patient players who never spend a dime. You'll get a fairly large percentage of players who will eventually cave and spend some money, and then you get the whales. Whales are big spenders and provide the majority of the money. its something like 0.15% of players account for 50% of revenue. i've seen different figures from different sources but they all agree that Whales are king.

    You also don't get people spending big on level 1. The whole trick is to get people invested first, and then to entice them to spend. If people have to open their wallet from level 1 they will be much less enticed. This is why revenue numbers went up in week 2 despite less download numbers.

    Once people spend once, theres extra psychological tricks like forcing you to convert your money to in-game currency (gems for example), and then making purchases of items in gems lopsided so you always end up with some left over or awkward numbers. This actually makes people more likely to buy something later because next time you need even less gems, or you think "i wasted a bit of my money unless i use these"

    There are games that offer zero gameplay benefit, zero, for what they are offering. For example, loot boxes that can give you an alternate skin for a character or weapon. Yet people still spend a lot of money on these. Crazy Defense Heroes offers chests with potentially rare drops in them which introduces a gambling element, this is a big money maker. Because people get hooked on the thrill of opening a really rare thing, which entices them to spend even more. Card games in general have operated on this principle from day 1.

    Clash of the Clans earned 2.3 billion in 2016, people are absolutely addicted to the microtransaction model. Crazy Defense Heroes already has a clan system, and if they just expand that to letting players "raid" each other like you can in Clans, this will drive further spending because whales like to spend money so they win as often as possible.

    I personally hate microtransactions as a gamer, but as a share holder, i absolutely LOVE this model
 
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