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Posted

I thought this article about TF2 becoming 'Free to Play' was interesting and relevant to the discussion of SFA:

 

http://gamasutra.com/view/news/164922/GDC_2012_How_Valve_made_Team_Fortress_2_freetoplay.php#.UMyvRTPEi5w

 

Does anyone know (Jules?) about how mobile apps with ads generate revenue from said ads? Is it similar to how webpages generate revenue (ie a 'click' is a ching-ching)?

 

I'm running the numbers in my head, and for SFA, if each download resulted in one 0.99 purchase, that's at least $50k in a month. Now, of course, the ratio of downloads to purchases may not be nearly that high.

 

FC

Posted

Also, it never hurts to have multiple streams of income coming in. I'd imagine that's why TK continues to sell the Gen 1 series of TW sims. Since, technically they are at the end of their life cycles, it means he doesn't have to provide technical support for them on newer systems. So, all it really costs to keep them up on the website for sale is whatever portion of the website cost they take up, which I'd imagine is trivial.

 

Same thing goes for all the expansion packs, DLC, etc. Each one is a tributary that in and of itself that doesn't generate much revenue, but with a wide span of them, merges into a steady stream of cash. The gamble, as with any business, is making sure that the initial investment of setting up that stream is eventually offset by the revenue it brings in. In theory, you could even setup a stream at a 'face value' loss, if other streams can pay for it, or it brings more intangible benefits.

 

FC

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