Annals of Business Administrative Science
Online ISSN : 1347-4456
Print ISSN : 1347-4464
ISSN-L : 1347-4456
The impact of user interactions on freemium game performance
Wei Huang
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JOURNALS OPEN ACCESS

2020 Volume 19 Issue 3 Pages 97-109

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Abstract

Company A’s Project R is a freemium-model game business wherein the company makes money by (a) obtaining a large number of users who play its game essentially for free and (b) converting a small number of them into paying users. In Project R, paying ability boosting items were added to increase profits. Doing this initially increased monthly sales by 20%; however, after two months, the playing time of existing non-paying users declined, and more new non-paying users abandoned the game as well. It seems that the addition of paying ability boosting items could shorten a game’s life span by destroying the balance between (a) and (b) and causing a long-term decline in revenue. This paper runs a simulation to verify this.

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© 2020 Wei Huang. This is an Open Access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited.

This article is licensed under a Creative Commons [Attribution 4.0 International] license.
https://creativecommons.org/licenses/by/4.0/
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