less than 10% pay

  • Less than 10% of people pay for premium content
  • ‘Web 2.0’ free app providers find ~1% pay for the premium product
  • 2-10% of players use micro transactions to buy virtual goods
  • Micro transactions are a lower hurdle than a subscription contract

“The micro-transaction model which has been so successful in Asia for nearly a decade is poised to become the defacto monetization standard worldwide for online games and virtual worlds.  The removal of a subscription fee encourages a larger, more diversified user base, which in turn increases the overall number and willingness of players to trade in virtual goods.  In theory, there is no ceiling on the potential revenue that can be generated per user, unlike the subscription model, and the more the game developers enhance the game and community experience, the less price sensitive players and the greater the reoccurrence of purchases will be.  Virtual goods contribute to a continuously changing game and virtual world experience and provide a continuous revenue stream to match.”

http://www.industrygamers.com/galleries/industry-insights-success-stories-in-the-micro-transaction-business/1

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