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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
2
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
4
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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