Wednesday, December 12, 2012

More evidence of weakness in the F2P space

As the numbers dribble out, we are seeing what a few of us already understood in our gut-- that squeezing blood from a stone is a lousy way to try to make money.

"Of the $50 billion that was spent worldwide last year on games, less than 10 percent was spent on casual content. "

Only 10% of the industry's $50 billion comes from casuals

3 comments:

Gregor Schiele said...

I'm confused. To me that quote sounds like it says that only 10% of the *spendings* went into casual content. That doesn't say anything about the *revenues*.

Cheers
Gregor

CyberQat said...
This comment has been removed by the author.
CyberQat said...

Granted that this is a "gross" figure, the amount of money going in, not a net.

But the margins are much, much worse in micro transaction based games then traditional models. (see my earlier analysis of Zynga's numbers)

The defense has always been "well its slim but the volume of business makes up for it." This statistic puts the lie to that contention.