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Permalink Reply by Alok 'Rodinhood' Kejriwal on September 11, 2012 at 7:32am

Start be reading the ppts and the blogs on this carefully - http://bitly.com/bundles/rodinhood/k

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Permalink Reply by Alok 'Rodinhood' Kejriwal on September 11, 2012 at 7:34am

also read this - http://techcrunch.com/2012/05/07/rovios-big-year-angry-birds-helps-...

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Permalink Reply by Alok 'Rodinhood' Kejriwal on September 11, 2012 at 7:39am

Hey!! Check this:

From - http://therodinhoods.com/forum/topics/how-silly-entrepreneurs-like

E - Economics 

It’s important to take a step back and sometimes just reflect on the ‘economics’ of the business. 

Consider the concept of pricing. I remember mentoring an entrepreneur who was on the brink of starting to charge his customers (for financial information), was benchmarking his introduction prices to ‘what seemed’ affordable. When I asked him if that made him profitable, he had no clue! There was this hurry to get into pricing and hence there was less thought to the overall ‘economics’ of the business. 

Let me explain how we think of iPhone games.

Description	Free Game on itunes	Description	Charged Game on itunes
Cost of making a game free game	US$ 3000	Cost of making a paid game	US$ 7000
Downloads possible	10000	Downloads possible per day	200
Consumers who play everyday	10,000	Revenue per game (99cents less iTunes share)	70 cents
Revenue from ads everyday (US$ 3CPM – 2 ads per play)	60 US$	Revenue per day	140
Break even time of the game	50 days	Break even	50 days
Possible shelf life of the game	200 days	Possible shelf life	100 days
Net Profit possible of the game	6000 US$	Net Profit	7000 US$
ROI of the game on the investment	100%	ROI	100%
Risk quotient (cost/profit)	0.5	Risk quotient (cost/profit)	1.00

 

The chart shows that Free games can be more lucrative than Paid games! 

So honestly, if you are not sure of a real Angry Birds on your hands, you may be better off trying to make simpler, ads supported games for iTunes’ customers who will reward you almost like they would if you had made a just about successful charged game, and that too with lower risks!

 

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Permalink Reply by karthik.c on September 11, 2012 at 7:01pm

Hi Alok,

           Thanks for sharing these useful information. Very informative and helpful.

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Permalink Reply by kanchan.kumar on September 13, 2012 at 4:36pm

Alok - This is brilliant. I remember we had discussed this briefly when you spoke about the Games economy at one of TiE events.

However, could you explain - why would the development cost of a free game be so less from that of the paid game?

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Permalink Reply by Alok 'Rodinhood' Kejriwal on September 13, 2012 at 5:47pm

basic game play - fewer levels

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