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Monetization & Game Economy

Building sustainable revenue through virtual economies and in-app purchases.

Sustainable monetization is essential for live service games. A well-designed economy balances player satisfaction with revenue generation.

Core Principles

  • 1Value exchange must feel fair to players
  • 2Multiple monetization methods reduce risk
  • 3Economy balance requires constant tuning
  • 4Data informs pricing and offer strategies
1

Monetization Models

Free-to-Play (F2P)

The dominant model for mobile and many PC/console live service games

Free to downloadIAP revenueCareful balance needed

Battle Pass / Season Pass

Popularized by Fortnite, now standard across many games

Premium rewardsEngagement driverRecurring revenue

Subscription

Growing model offering ongoing benefits

Monthly recurringVIP perksPredictable revenue
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Dual Currency Design

S

Soft Currency

  • • Earned through gameplay
  • • Spent on basic items
  • • Keeps players engaged
H

Hard Currency

  • • Purchased with real money
  • • Premium items or acceleration
  • • Primary revenue driver
3

Sink and Faucet Balance

Economy Balance is Critical
Currency enters the economy (faucets) and leaves (sinks). Get this wrong and your economy breaks.
Too many faucets

Inflation - purchases feel meaningless

Too few faucets

Frustration - players feel blocked

Too few sinks

Accumulation - no reason to purchase

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Key Metrics

ARPDAU
Revenue per DAU
Daily revenue health
ARPPU
Revenue per Payer
Payer value
2-5%
Conversion
Free to paying

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