Freak Your Game: Data-Driven Game Management for Dummies

Lisa Rutherford of Twofish

Twofish is a company that offers developers a way to easily fold in micro-transaction capability in their products. Lisa Rutherford, the Vice President of Strategy and Business Development for Twofish, stresses that the monetization of virtual worlds with micro-transactions will require a new perspective on the importance of economic data. Developers of virtual worlds really need to incorporate various different strategies when trying to monetize their products.

Economic infrastructure for on-line entertainment includes banking, supply chain and inventory. Virtual Economies don't take into account of all the back end that is required. Real economics is much deeper and must be used as a basis for virtual economies. Supply and demand and price elasticity are very important issues to keep in mind while developing virtual economies. A developer must meet user expectations as security and fidelity is assumed.

Furthermore, games are no longer products – they're services.

So what is a virtual world developer to do now that the game design meme has changed?

Collect data.

Collecting data allows analysis's to analyze the data and ask the right questions, which allows the site to learn what their players like to do, when they do it, and with whom.

Another aspect of micro-transaction based games is banking finance. Each player should be able to have full account histories. Questions the developer should be asking are
How is value into the account done?
Is it purchased or earned?
How is value out of an account spent?
Through a purchase or trade?
Who does the player spend the value with and on what?

Ms. Rutherford encouraged the audience to embrace micro-transactions as not just a business model. While a virtual world may have invisible inferred currencies, the transactions are still data and very real.

Another item that is important to the virtual micro-transactional world is inventory control. A developer must track and control each item.

A benefit of collecting the data is that the site can adopt financial account policies. The site can, though data analysis, find out if the virtual economy is stagnating or highly has active puddles of currency. Collecting data also allows the site to trace back monetary flows to understand who has the funds, where the funds are going, when and why. By understanding the aspects of how the site is being used, then financial policies can be implemented. Such financial policies can be something that is designed to stimulate engagement and purchasing with bonuses or content. Real-time data collecting and analyzing will help deter abuse and fraud by limiting velocities and permissions automatically by alerting for statistical anomalies. Users will find your loopholes. To combat this, look for patterns and behaviors that deviate from norm.

Pokerstars 2X had players exploiting a loophole for upwards of two weeks before it was caught. If they had automatic alerting designed into their site, they would have caught this much earlier.

Another item to consider is to add asset lifecycle management to the game. An example Ms. Rutherford used was how Edgeracers have tires that wear out, so their value went down the more times they were used.

Price elasticity is also something to consider. When Edgeracers posted some loss leaders for new paint jobs and chrome, it lead to higher prices paid for accessories to match the new skin. Major decorative diversity is important.

Collecting data also improves a developers ability for client profiling which is important to attract ad partners.

Dynamic Pricing Models GWABS Warfare games – buy stuff before game
Dynamic pricing model
scarcity

In conclusion, Ms. Rutherford said that data collecting was vital to virtual game worlds as it allows the developers to make versatile games that will allow the end user to enjoy the game more. Virtual world developers who don't collect and analyze data are really missing out on big opportunities.

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