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Bigpoint: Publishers don't understand monetisation

Philip Reisberger says EA, Ubisoft and Valve are missing the point: "If selling an advantage ruins the game, you haven't done the balancing right."

Browser game company Bigpoint has harshly criticised the approach traditional publishers are taking as they make their first forays into free-to-play and explore alternative means of monetising their users.

In an interview, chief games officer Philip Reisberger tells us that the likes of EA, Valve and Ubisoft are wrong to focus on selling virtual goods that enable customisation, rather than a competitive advantage. Bigpoint, he argues, better understands monetisation by virtue of it never having been in the console business.

"I've never shipped a retail product in my entire life," he tells us. "We don't know how to do that, so we think differently. That's a big advantage in this new world.

"There are millions, hundreds of millions of people willing to invest even though they aren't obliged to. The crucial part of the design is not having to invest, but wanting to. Most people in the Bigpoint universe don't ever pay," he adds, before lining up Valve in his sights. "But if they want to pay, don't just offer hats - offer them something that will help them."

"In a nutshell, EA doesn't understand it," he adds, referring to EA's insistence that a Battlefield 3 pre-order bonus containing advanced weaponry would not give players a competitive advantage. "It wouldn't ruin the game. If selling an advantage ruins the game, you haven't done the balancing right…EA and Ubisoft, for example, they're both trying, but they're not really there yet.

"It's a delicate balance, though, and that's why I love my game designers. All of them have understood how to do this. If you have a sophisticated approach to free-to-play games, in the end you can monetise everything."

It's an interesting point, but Reisberger is happily overlooking the fact that where Bigpoint's and the likes of EA's businesses differ is that all Bigpoint's games are free to play. There, giving players a financial route to the top makes good business sense; traditional publishers have to consider those who have already paid £40 for a copy of a game.

Valve, too, would likely point to the fact that Team Fortress 2 has been a popular online game for almost four years, with a highly engaged community. It is already balanced as such, and therefore offering advantage through microtransactions would either ruin that balance, or require so extensive a rebalance that it might no longer be the same game. Traditional publishers are dipping a toe in the waters of free-to-play at the moment, and may well agree with Reisberger's view that they are not quite there yet.

Regardless, it's a strategy that has clearly worked for Bigpoint: it has 220 million registered users, a figure that grows by a quarter of a million every day. For the full interview, click here.

Comments

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jaks's picture

How many users they have is totally irrelevant. How much money to they make?

barns's picture

how much users they have is totally unimportant, how much a score would you give to philip reisberg telling how the geniuses play the game [of real economics] sometimes i think the prises should go to the persons, not the achievements. in regard to teh history of sciense

nicholaslovell's picture

They made €200m in 2010, with an operating margin of 20-30%. That's up from €60m in 2009, which is pretty impressive revenue growth.
See http://www.gamesbrief.com/2011/06/bigpoints-revenue-growth/
I agree that the user number is irrelevant. More than that, the number they quote is registered users, not active users, which is a totally useless metric.

Alex Wiltshire's picture

Thanks for the figure, Nicholas - I can't help thinking that their insistence on quoting registered figures rather than actives rather hurts their public profile.
On revenue/profit being the only indicator of success, though, I'd tend to disagree. Active user numbers are an important measure of engagement - and engagement is vital for future financial success. Big revenue today doesn't necessarily mean big revenue tomorrow.

nogusta's picture

The only thing I understand is that I have played Bigpoint's Drakensang Online and it is the worst game I have ever played in my entire life. Their forums are fille with people rightfully accusing them of greed. They aren't making games that are fun, they are making games to suck money out of stupid people. If Bigpoint succeeds, I will lose faith in humanity.