So we need to find the sweet spot, and the only way doing this is to look at a ton of data and keep an eye out on how the community feels. This process NEVER ends.
Managing our in-game economy is a fine balance. Too F2P friendly? Unsustainable. Too harsh economy? Also unsustainable - it's harder to find players who want to stick around (low retention) which leads to higher cost for user acquisition.
We try to strike a good balance between making the game F2P friendly while making it worth our while as a company to keep developing it actively for you.
So when me or people from other games companies talk about the economy of games, that's what we're talking about. Above isn't our specific reality, but the basic assumptions are the same.
To be fair, it's rather unlikely that in above scenario anyone would sign off on esports in the first place, given the unclear return of investment.
Esports would likely be something like 1% of revenue or $80,000/month in our example - I'd be surprised if more than $20,000/month could be made available for price pools - that's $240,000/year including finals, etc.
In all of this there's not even talk or growing the company or creating other games...
You might also run out of cash before you turn a profit = company dies if you can't find further investors/a buyer. Depending from where that money comes from in the first place, there might be angry board meetings pushing you to do things you don't like.
Good luck trying to retain the best industry talent under these circumstances in a hyper competitive market.
In all of this: bonuses are often based on profit sharing. So as long as you don't generate a profit, employees will likely be stuck with their base compensation, company shares aren't worth much if you don't get dividends and you can't sell them.
There's a gazillion other micro things going on ofc. How long to players stick around (retention)? Can you improve spending? Does it simply take 24 months to get the payback from the User Acquisition?
Depending on your cash from initial investments you burn through that until you start to turn a profit once the payback happens or you improve any of the other factors.
None of these guarantee success. In above example, if we'd invest a fixed 20% of topline revenue, that'd be $1,600,000/month which means we'd operate at a loss of $144,000/month or $1,728,000/year.
Some companies spend more than they make (and generate a deficit), others re-invest everything they have left and others invest a % of topline revenue.
That isn't profit. To sustain the DAU/MAU you need to re-invest. Many companies invest heavily in marketing in order to acquire new users, looking at variable payback times until profit happens.
VAT = $1,600,000 (tax authorities) Revenue = $6,400,000 (company)
Total Revenue = $6,400,000 Platform Fee (30%) = $1,920,000 Taxes (21%) = $1,344,000
Remainder = $3,136,000 Cost (see above) = $1,680,000
Remainder = $1,456,000
Let's assume the 5,000,000 DAU translates into about 20,000,000 MAU (monthly active players), which will vary a lot depending on how casual or hardcore your game is.
20,000,000 x 5% x $7 USD = $7,000,000 20,000,000 x 5% x $1 USD = $1,000,000
Let's now assume 5% of your players spend $5 USD/month on a Battle Pass + another $2 USD/month on cosmetics and 5% spend $1 USD/month on progress. That spend includes VAT. Let's say that averages at 20% depending on where that purchase is made.
Some fixes and some balancing. One buff didn't make it into the notes:
✅ Mandy's delay for longer range was reduced by 40%
#BrawlStars #Maintenance
It's drawin' time! ✍️ (Also, because we have maintenance soon with some balance changes - notes are in the in-game news!) Submissions for the Pirate Surge #SupercellMAKE campaign are now open! 🤖🏴☠️ https://t.co/MR6of5zHtg
It's drawin' time! ✍️ (Also, because we have maintenance soon with some balance changes - notes are in the in-game news!)
Submissions for the Pirate Surge #SupercellMAKE campaign are now open! 🤖🏴☠️