StrangeTalent wrote:
The problem with a game round costing say, 10,000 gold to join for no gold use, is that it caps Bytros income from that player at 10,000 gold spent. Who knows, he may have been willing to spend 100,000 gold. That is the bane of micro transactions. Business standpoint, I'd make the same choice Bytro has made.
Not really. Bird in the hand vs. hypothetical bird in the bush. The bird in the hand is always worth more.
Let's put this in terms of real money, not in-game pseudo-currency. I would gladly pay $10 to $20 for the privilege of playing a gold-free game against 21, 49 or 99 other players for a game I expect to last 30 to 100 days. That's the equivalent of 30,000 to 64,000 gold units at currently published U.S. dollar prices for in-game "gold." That game is going to fill up, because there are many experienced, competent players of Call of War who feel as I do. You can even make it a "starts when full" game.
The marginal cost to Bytro Labs is virtually zero (one more game running on the server with thousands of others already running); at the lower $10 per-game price, the marginal revenue is 22 x $10 = $220, or 50 x $10 = $500, or 100 x $10 = $1,000. At the higher $20 per-game price, the marginal revenue would double that: 22 x $20 = $440, 50 x $20 = $1,000, or 100 x $20 = $2,000.
Exactly how many Call of War games do you think Bytro has running on the servers right now from which the total revenue will exceed $1,000 to $2,000? I'm going to go out on a limb and say virtually none.
And if the Bytro brain trust wants to make even more money, they could make High Command membership a pre-condition for playing in pre-paid gold-free rounds. So, you could add another $6 (or more, depending on the game duration) per player per game for a High Command membership (plus renewals).
New players could continue to play free rounds, just as they do now, serving as victims for "big spender" gold users, just as they do now. What would change, however, is that more of your best, long-term competent players -- i.e. those who don't need gold to win, and are the players most offended by the prospect of "buying a win" -- are going to shift into the pay-to-play gold-free rounds. These better long-term players are also the ones who are slowly burning out in the current system, so change it. Voila! You now have better long-term customer retention, without the silliness of "crates." And best of all, it costs Bytro nothing, and delivers a new, previously untapped revenue stream.