How can a Mobile Game Earn $1M?
If you are a game developer, if you care about the development of game industry, or if you are a editor in a game website, you should understand the most popular game now is running in the mobile. However, how to design a profitable mobile game is a serious and profound problem that has to be met by many game companies.
Therefore, Fuseboxx after many years’ collection and analyzing billions of data, finally they find a formula to build a profitable mobile game. They list three conditions that have the potential to earn revenue for its developers.
1. High Volume: games that easily acquire high volumes of low cost players (<$0.10)
2. High Conversion: a high percentage of players opt to pay (5%+)
3. High Spend: paying players spend a lot (>$20 avg)
If one game is appropriate to one of the conditions, it should be a successful game, because it fit the formulas below:
# of Players x TRUE ARPDAU* x Player Lifespan (days) = Total Revenue
where: TRUE ARPDAU (Average Revenue per Daily Active User) = (Total ad revenue + IAP revenue)/# of active players
High Volume games are those that have an easy time climbing and staying at the top of the ranking charts, get featured often and/or have high conversion on paid acquisition campaigns. All of these things are usually the result of producing a game that quickly appeals to a very large audience. All of these conditions lead to a low average player acquisition cost and lots of players.
High Volume games can have low ARPDAU and Lifespan and still get to $1M:
5,000,000 players x $0.03 ARPDAU x 7 days lifespan = $1,050,000
High Conversion and High Spend games on the other hand, need to have higher ARPDAU and lifespan to make a profit as they’ll have fewer players and will have paid more to get them. To make the grade in these categories your game should have a lifetime player value (ARPDAU x lifespan) of at least $1 (e.g., $.10+ ARPDAU and 10 day+ lifespan):
1,000,000 players x $0.10 ARPDAU x 10 day lifespan = $1,000,000
Although both game types arrive at a $0.10 ARPDAU and 10-day lifespan, how they get there is very different. High Conversion games generate a much higher percentage of paying players – 5% or greater. As a result the amount of money these players spend can be lower. High Spend games have a lower percentage of paying players but the game allows players to spend a lot more.
High Conversion: 5% of players spending an average of $2/day = $0.10 ARPDAU
High Spend: 1% of players spending an average of $10/day = $0.10 ARPDAU
You can test all of these metrics quickly and easily with a small audience if you have the right tools. Adjusting things like your economy, game balance and marketing assets should be done with the clear goal of getting to the right values for those key metrics. Adjust your game until it fits the formula and you have a winner.