the risks & rewards of innovation in game design

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The Rewards & Risks of Innovation Differentiation in a Crowded Market 1 Friday, August 2, 13

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Innovation in game design is inherently risky. Attempting to bring innovation to centuries old casino games has even greater risk. Jeffrey Hyman, the co-founder of Idle Games and the creator of Fresh Deck Poker provides an in-depth and data driven examination of what worked and what didn't when launching a new mobile & social casino product into a mature market. Jeffrey provides both the story and data behind a wide spectrum of challenging decisions that range from seemingly simple decisions like “art style“ to complex matters that sit at the intersection of ethics, engineering and monetization .... i.e:, what is the role of the random number generator in F2P social and mobile games?

TRANSCRIPT

Page 1: The Risks & Rewards of Innovation in Game Design

The Rewards & Risks of InnovationDifferentiation in a Crowded Market

1Friday, August 2, 13

Page 2: The Risks & Rewards of Innovation in Game Design

a history of innovation in gamesbrief

2Friday, August 2, 13

Page 3: The Risks & Rewards of Innovation in Game Design

a history of innovation in games

✤ This is Table Tennis created by Ralph Baer & Magnavox. (Ever hear of them?)

brief

2Friday, August 2, 13

Page 4: The Risks & Rewards of Innovation in Game Design

a history of innovation in games

✤ This is Table Tennis created by Ralph Baer & Magnavox. (Ever hear of them?)

brief

✤ This Pong from Nolan Bushnell & Atari. (You heard of them.)

2Friday, August 2, 13

Page 5: The Risks & Rewards of Innovation in Game Design

the current state of innovation

3Friday, August 2, 13

Page 6: The Risks & Rewards of Innovation in Game Design

✤ tiny wings took the core mechanic of wave spark and polished it.

the current state of innovation

3Friday, August 2, 13

Page 7: The Risks & Rewards of Innovation in Game Design

✤ tiny wings took the core mechanic of wave spark and polished it.

✤ same thing with angry birds and crush the castle ... actually they kinda took the whole game.

the current state of innovation

3Friday, August 2, 13

Page 8: The Risks & Rewards of Innovation in Game Design

so the point is?

4Friday, August 2, 13

Page 9: The Risks & Rewards of Innovation in Game Design

so the point is?

✤ based on case studies of angry birds and tiny wings...

4Friday, August 2, 13

Page 10: The Risks & Rewards of Innovation in Game Design

so the point is?

✤ based on case studies of angry birds and tiny wings...

✤ is changing art, setting, production value innovation?

4Friday, August 2, 13

Page 11: The Risks & Rewards of Innovation in Game Design

so the point is?

✤ based on case studies of angry birds and tiny wings...

✤ is changing art, setting, production value innovation?

✤ is being inspired by (or stealing) a great game mechanic and doing something different/better/simpler ... innovating?

4Friday, August 2, 13

Page 12: The Risks & Rewards of Innovation in Game Design

so the point is?

✤ based on case studies of angry birds and tiny wings...

✤ is changing art, setting, production value innovation?

✤ is being inspired by (or stealing) a great game mechanic and doing something different/better/simpler ... innovating?

✤ who cares.

4Friday, August 2, 13

Page 13: The Risks & Rewards of Innovation in Game Design

this is the point.

5Friday, August 2, 13

Page 14: The Risks & Rewards of Innovation in Game Design

this is the point.

✤ small incremental steps is the form of innovation that works in the game industry

5Friday, August 2, 13

Page 15: The Risks & Rewards of Innovation in Game Design

this is the point.

✤ small incremental steps is the form of innovation that works in the game industry

✤ innovate on 1 or 2 vectors at once. no more.

5Friday, August 2, 13

Page 16: The Risks & Rewards of Innovation in Game Design

this is the point.

✤ small incremental steps is the form of innovation that works in the game industry

✤ innovate on 1 or 2 vectors at once. no more.

✤ choosing what to innovate in a casino game ... challenging

5Friday, August 2, 13

Page 17: The Risks & Rewards of Innovation in Game Design

this is the point.

✤ small incremental steps is the form of innovation that works in the game industry

✤ innovate on 1 or 2 vectors at once. no more.

✤ choosing what to innovate in a casino game ... challenging

✤ no innovation? shovelware.

5Friday, August 2, 13

Page 18: The Risks & Rewards of Innovation in Game Design

this is the point.

✤ small incremental steps is the form of innovation that works in the game industry

✤ innovate on 1 or 2 vectors at once. no more.

✤ choosing what to innovate in a casino game ... challenging

✤ no innovation? shovelware.

✤ too much? shovel is in you hand as you dig your grave.

5Friday, August 2, 13

Page 19: The Risks & Rewards of Innovation in Game Design

this is the point.

✤ small incremental steps is the form of innovation that works in the game industry

✤ innovate on 1 or 2 vectors at once. no more.

✤ choosing what to innovate in a casino game ... challenging

✤ no innovation? shovelware.

✤ too much? shovel is in you hand as you dig your grave.

✤ a quantative look at qualitative 5Friday, August 2, 13

Page 20: The Risks & Rewards of Innovation in Game Design

this was pokermind-boggling well entrenched incumbents + years of lead time + identical in appearance

6Friday, August 2, 13

Page 21: The Risks & Rewards of Innovation in Game Design

What We Tried: Art1st Person POV + High Production Values + Comic Book Chat + Ultra Clean UI

7Friday, August 2, 13

Page 22: The Risks & Rewards of Innovation in Game Design

But Everyone Was Still Scared...Forced to Hedge our Bet (which was smart)

8Friday, August 2, 13

Page 23: The Risks & Rewards of Innovation in Game Design

Innovation on Art. How’d that work out?

9Friday, August 2, 13

Page 24: The Risks & Rewards of Innovation in Game Design

Innovation on Art. How’d that work out?

✤ People love the art.

9Friday, August 2, 13

Page 25: The Risks & Rewards of Innovation in Game Design

Innovation on Art. How’d that work out?

✤ People love the art.

✤ Succeeded in differentiation.

9Friday, August 2, 13

Page 26: The Risks & Rewards of Innovation in Game Design

Innovation on Art. How’d that work out?

✤ People love the art.

✤ Succeeded in differentiation.

✤ Monetization benefits ... meh.

9Friday, August 2, 13

Page 27: The Risks & Rewards of Innovation in Game Design

Innovation on Art. How’d that work out?

✤ People love the art.

✤ Succeeded in differentiation.

✤ Monetization benefits ... meh.

✤ A/B Testing &Vindication ...

9Friday, August 2, 13

Page 28: The Risks & Rewards of Innovation in Game Design

Innovation on Art. How’d that work out?

✤ People love the art.

✤ Succeeded in differentiation.

✤ Monetization benefits ... meh.

✤ A/B Testing &Vindication ...

✤ 16% More Hands Played

9Friday, August 2, 13

Page 29: The Risks & Rewards of Innovation in Game Design

Innovation on Art. How’d that work out?

✤ People love the art.

✤ Succeeded in differentiation.

✤ Monetization benefits ... meh.

✤ A/B Testing &Vindication ...

✤ 16% More Hands Played

✤ 3% Increase In Revenue

9Friday, August 2, 13

Page 30: The Risks & Rewards of Innovation in Game Design

What We Tried: Quality, Quantity & Richness of AnimationsCelebrate The Win + Create Excitement + Make it Not Look Like Crap

10Friday, August 2, 13

Page 31: The Risks & Rewards of Innovation in Game Design

Innovation on Animation. How’d that work out?

✤ Looked Beautiful & Received Positive Feedback.

11Friday, August 2, 13

Page 32: The Risks & Rewards of Innovation in Game Design

Innovation on Animation. How’d that work out?

✤ Looked Beautiful & Received Positive Feedback.

✤ But ...Convinced avg. Facebook user has a Commodore Amiga.

11Friday, August 2, 13

Page 33: The Risks & Rewards of Innovation in Game Design

Innovation on Animation. How’d that work out?

✤ Looked Beautiful & Received Positive Feedback.

✤ But ...Convinced avg. Facebook user has a Commodore Amiga.✤ 25% of Fb Users had < 15fps

11Friday, August 2, 13

Page 34: The Risks & Rewards of Innovation in Game Design

Innovation on Animation. How’d that work out?

✤ Looked Beautiful & Received Positive Feedback.

✤ But ...Convinced avg. Facebook user has a Commodore Amiga.✤ 25% of Fb Users had < 15fps✤ 10% of Fb Users had < 7fps

11Friday, August 2, 13

Page 35: The Risks & Rewards of Innovation in Game Design

Innovation on Animation. How’d that work out?

✤ Looked Beautiful & Received Positive Feedback.

✤ But ...Convinced avg. Facebook user has a Commodore Amiga.

✤ Questioned Load Times

✤ 25% of Fb Users had < 15fps✤ 10% of Fb Users had < 7fps

11Friday, August 2, 13

Page 36: The Risks & Rewards of Innovation in Game Design

Innovation on Animation. How’d that work out?

✤ Looked Beautiful & Received Positive Feedback.

✤ But ...Convinced avg. Facebook user has a Commodore Amiga.

✤ Questioned Load Times✤ Reduced time by 40%

✤ 25% of Fb Users had < 15fps✤ 10% of Fb Users had < 7fps

11Friday, August 2, 13

Page 37: The Risks & Rewards of Innovation in Game Design

Innovation on Animation. How’d that work out?

✤ Looked Beautiful & Received Positive Feedback.

✤ But ...Convinced avg. Facebook user has a Commodore Amiga.

✤ Questioned Load Times✤ Reduced time by 40%

✤ 21% Increase in D1*

✤ 25% of Fb Users had < 15fps✤ 10% of Fb Users had < 7fps

11Friday, August 2, 13

Page 38: The Risks & Rewards of Innovation in Game Design

What We Tried: True Platform PortablitySingle Pool of Player Liquidity + Seamless Hand Continuation Cross Platform

12Friday, August 2, 13

Page 39: The Risks & Rewards of Innovation in Game Design

Innovation on Cross Platform How’d that work out?

13Friday, August 2, 13

Page 40: The Risks & Rewards of Innovation in Game Design

Innovation on Cross Platform How’d that work out?

✤ Shocked at results.

13Friday, August 2, 13

Page 41: The Risks & Rewards of Innovation in Game Design

Innovation on Cross Platform How’d that work out?

✤ Shocked at results.

✤ Cross Platform Retention

13Friday, August 2, 13

Page 42: The Risks & Rewards of Innovation in Game Design

Innovation on Cross Platform How’d that work out?

✤ Shocked at results.

✤ Cross Platform Retention

✤ D1 - 239% Increase

13Friday, August 2, 13

Page 43: The Risks & Rewards of Innovation in Game Design

Innovation on Cross Platform How’d that work out?

✤ Shocked at results.

✤ Cross Platform Retention

✤ D1 - 239% Increase

✤ D7 - 387% Increase

13Friday, August 2, 13

Page 44: The Risks & Rewards of Innovation in Game Design

Innovation on Cross Platform How’d that work out?

✤ Shocked at results.

✤ Cross Platform Retention

✤ D1 - 239% Increase

✤ D7 - 387% Increase

✤ D30 - 650% Increase

13Friday, August 2, 13

Page 45: The Risks & Rewards of Innovation in Game Design

Innovation on Cross Platform How’d that work out?

✤ Shocked at results.

✤ Cross Platform Retention

✤ D1 - 239% Increase

✤ D7 - 387% Increase

✤ D30 - 650% Increase

✤ Conversion: 591% Increase

13Friday, August 2, 13

Page 46: The Risks & Rewards of Innovation in Game Design

Innovation on Cross Platform How’d that work out?

✤ Shocked at results.

✤ Cross Platform Retention

✤ D1 - 239% Increase

✤ D7 - 387% Increase

✤ D30 - 650% Increase

✤ Conversion: 591% Increase

✤ Causality?

13Friday, August 2, 13

Page 47: The Risks & Rewards of Innovation in Game Design

What We Tried: Focus on Ratings & Less ‘Spam’Let’s take the “high road”.

14Friday, August 2, 13

Page 48: The Risks & Rewards of Innovation in Game Design

Less ‘Spam. How’d that work out?

15Friday, August 2, 13

Page 49: The Risks & Rewards of Innovation in Game Design

Less ‘Spam. How’d that work out?

Retention too high? Making too much money? Stop ‘spamming’!

15Friday, August 2, 13

Page 50: The Risks & Rewards of Innovation in Game Design

✤ 21.7% Decrease in D1✤ 17.1% Decrease in D7

Less ‘Spam. How’d that work out?

Retention too high? Making too much money? Stop ‘spamming’!

15Friday, August 2, 13

Page 51: The Risks & Rewards of Innovation in Game Design

Less ‘Spam’. How’d that work out?

16Friday, August 2, 13

Page 52: The Risks & Rewards of Innovation in Game Design

✤ Frequency & Cadence of In-Game Ads

Less ‘Spam’. How’d that work out?

16Friday, August 2, 13

Page 53: The Risks & Rewards of Innovation in Game Design

✤ Frequency & Cadence of In-Game Ads

Less ‘Spam’. How’d that work out?

✤ When we figured out the right balance ...

16Friday, August 2, 13

Page 54: The Risks & Rewards of Innovation in Game Design

✤ Frequency & Cadence of In-Game Ads

Less ‘Spam’. How’d that work out?

✤ When we figured out the right balance ...✤ 42.86% Increase Conversion

16Friday, August 2, 13

Page 55: The Risks & Rewards of Innovation in Game Design

✤ Frequency & Cadence of In-Game Ads

Less ‘Spam’. How’d that work out?

✤ When we figured out the right balance ...✤ 42.86% Increase Conversion✤ 33.65% Increase Revenue

16Friday, August 2, 13

Page 56: The Risks & Rewards of Innovation in Game Design

✤ Frequency & Cadence of In-Game Ads

Less ‘Spam’. How’d that work out?

✤ When we figured out the right balance ...✤ 42.86% Increase Conversion✤ 33.65% Increase Revenue✤ - 0.35% Decrease Retention

16Friday, August 2, 13

Page 57: The Risks & Rewards of Innovation in Game Design

What We Tried: Authenticity of Game Play + Real RNG

17Friday, August 2, 13

Page 58: The Risks & Rewards of Innovation in Game Design

Why A Certified Random Number Generator

18Friday, August 2, 13

Page 59: The Risks & Rewards of Innovation in Game Design

Why A Certified Random Number Generator

✤ “The game is rigged”. 35% of Complaints

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Page 60: The Risks & Rewards of Innovation in Game Design

Why A Certified Random Number Generator

✤ Is Poker without a RNG still Poker?

✤ “The game is rigged”. 35% of Complaints

18Friday, August 2, 13

Page 61: The Risks & Rewards of Innovation in Game Design

Why A Certified Random Number Generator

✤ Is Poker without a RNG still Poker?✤ Customer migration to RMG.

✤ “The game is rigged”. 35% of Complaints

18Friday, August 2, 13

Page 62: The Risks & Rewards of Innovation in Game Design

Why A Certified Random Number Generator

✤ Is Poker without a RNG still Poker?✤ Customer migration to RMG.✤ I DO think F2P will convert ...but

✤ “The game is rigged”. 35% of Complaints

18Friday, August 2, 13

Page 63: The Risks & Rewards of Innovation in Game Design

Why A Certified Random Number Generator

✤ Is Poker without a RNG still Poker?✤ Customer migration to RMG.✤ I DO think F2P will convert ...but

✤ won’t feel the same

✤ “The game is rigged”. 35% of Complaints

18Friday, August 2, 13

Page 64: The Risks & Rewards of Innovation in Game Design

Why A Certified Random Number Generator

✤ Is Poker without a RNG still Poker?✤ Customer migration to RMG.✤ I DO think F2P will convert ...but

✤ won’t feel the same✤ won’t behave the same

✤ “The game is rigged”. 35% of Complaints

18Friday, August 2, 13

Page 65: The Risks & Rewards of Innovation in Game Design

Why A Certified Random Number Generator

✤ Is Poker without a RNG still Poker?✤ Customer migration to RMG.✤ I DO think F2P will convert ...but

✤ won’t feel the same✤ won’t behave the same✤ therefore. won’t retain

✤ “The game is rigged”. 35% of Complaints

18Friday, August 2, 13

Page 66: The Risks & Rewards of Innovation in Game Design

Why A Certified Random Number Generator

✤ Is Poker without a RNG still Poker?✤ Customer migration to RMG.✤ I DO think F2P will convert ...but

✤ won’t feel the same✤ won’t behave the same✤ therefore. won’t retain✤ won’t monetize

✤ “The game is rigged”. 35% of Complaints

18Friday, August 2, 13

Page 67: The Risks & Rewards of Innovation in Game Design

Why A Certified Random Number Generator

✤ Is Poker without a RNG still Poker?✤ Customer migration to RMG.✤ I DO think F2P will convert ...but

✤ won’t feel the same✤ won’t behave the same✤ therefore. won’t retain✤ won’t monetize✤ at best players try & churn

✤ “The game is rigged”. 35% of Complaints

18Friday, August 2, 13

Page 68: The Risks & Rewards of Innovation in Game Design

Why A Certified Random Number Generator

✤ Is Poker without a RNG still Poker?✤ Customer migration to RMG.✤ I DO think F2P will convert ...but

✤ won’t feel the same✤ won’t behave the same✤ therefore. won’t retain✤ won’t monetize✤ at best players try & churn ✤ at worse they are fleeced

✤ “The game is rigged”. 35% of Complaints

18Friday, August 2, 13

Page 69: The Risks & Rewards of Innovation in Game Design

Are the Rules of Poker (and regulated casino games) antithetical to the best practices of F2P Game Design?

19Friday, August 2, 13

Page 70: The Risks & Rewards of Innovation in Game Design

Are the Rules of Poker (and regulated casino games) antithetical to the best practices of F2P Game Design?

✤ 63% of players LOSE THE FIRST 3 TIMES they play!

19Friday, August 2, 13

Page 71: The Risks & Rewards of Innovation in Game Design

Are the Rules of Poker (and regulated casino games) antithetical to the best practices of F2P Game Design?

✤ 63% of players LOSE THE FIRST 3 TIMES they play!✤ What modern F2P mobile/social game lets that happen?

19Friday, August 2, 13

Page 72: The Risks & Rewards of Innovation in Game Design

Are the Rules of Poker (and regulated casino games) antithetical to the best practices of F2P Game Design?

✤ 63% of players LOSE THE FIRST 3 TIMES they play!✤ What modern F2P mobile/social game lets that happen? ✤ New User Flows Are Designed to PREVENT that!

19Friday, August 2, 13

Page 73: The Risks & Rewards of Innovation in Game Design

Are the Rules of Poker (and regulated casino games) antithetical to the best practices of F2P Game Design?

✤ 63% of players LOSE THE FIRST 3 TIMES they play!✤ What modern F2P mobile/social game lets that happen? ✤ New User Flows Are Designed to PREVENT that!✤ Imagine this Scenario: Welcome to Candy Crush Saga ...

19Friday, August 2, 13

Page 74: The Risks & Rewards of Innovation in Game Design

Are the Rules of Poker (and regulated casino games) antithetical to the best practices of F2P Game Design?

✤ 63% of players LOSE THE FIRST 3 TIMES they play!✤ What modern F2P mobile/social game lets that happen? ✤ New User Flows Are Designed to PREVENT that!✤ Imagine this Scenario: Welcome to Candy Crush Saga ...

19Friday, August 2, 13

Page 75: The Risks & Rewards of Innovation in Game Design

Are the Rules of Poker (and regulated casino games) antithetical to the best practices of F2P Game Design?

20Friday, August 2, 13

Page 76: The Risks & Rewards of Innovation in Game Design

Are the Rules of Poker (and regulated casino games) antithetical to the best practices of F2P Game Design?

✤ Golden Palace Scratchers✤ 400% Increase In Purchases

20Friday, August 2, 13

Page 77: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

21Friday, August 2, 13

Page 78: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ “The Game is Rigged”✤ 35% Of Complaints

21Friday, August 2, 13

Page 79: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ “The Game is Rigged”✤ 35% Of Complaints

✤ Increased Retention

21Friday, August 2, 13

Page 80: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ “The Game is Rigged”✤ 35% Of Complaints

✤ Increased Retention✤ Increased Revenue

✤ How? Well ... In Theory

21Friday, August 2, 13

Page 81: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ “The Game is Rigged”✤ 35% Of Complaints

✤ Increased Retention✤ Increased Revenue

✤ Alter Logic of Deals

✤ How? Well ... In Theory

21Friday, August 2, 13

Page 82: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ “The Game is Rigged”✤ 35% Of Complaints

✤ Increased Retention✤ Increased Revenue

✤ Alter Logic of Deals✤ Better Starting Hands

✤ How? Well ... In Theory

21Friday, August 2, 13

Page 83: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ “The Game is Rigged”✤ 35% Of Complaints

✤ Increased Retention✤ Increased Revenue

✤ Alter Logic of Deals✤ Better Starting Hands

✤ increase action

✤ How? Well ... In Theory

21Friday, August 2, 13

Page 84: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ “The Game is Rigged”✤ 35% Of Complaints

✤ Increased Retention✤ Increased Revenue

✤ Alter Logic of Deals✤ Better Starting Hands

✤ increase action ✤ increase amount & # of bets

✤ How? Well ... In Theory

21Friday, August 2, 13

Page 85: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ “The Game is Rigged”✤ 35% Of Complaints

✤ Increased Retention✤ Increased Revenue

✤ Alter Logic of Deals✤ Better Starting Hands

✤ increase action ✤ increase amount & # of bets✤ increases bust outs

✤ How? Well ... In Theory

21Friday, August 2, 13

Page 86: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

22Friday, August 2, 13

Page 87: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ Analysis of New Players With “Strong” First Hands.

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Page 88: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ Analysis of New Players With “Strong” First Hands.

✤ 100% increase conversion

22Friday, August 2, 13

Page 89: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ Analysis of New Players With “Strong” First Hands.

✤ 100% increase conversion✤ 113% increase in hands played

22Friday, August 2, 13

Page 90: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ Analysis of New Players With “Strong” First Hands.

✤ 100% increase conversion✤ 113% increase in hands played✤ 53% increase in net revenue

22Friday, August 2, 13

Page 91: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ Analysis of New Players With “Strong” First Hands.

✤ 100% increase conversion✤ 113% increase in hands played✤ 53% increase in net revenue✤ 66% increase in retention

22Friday, August 2, 13

Page 92: The Risks & Rewards of Innovation in Game Design

Why NOT A Certified Random Number Generator

✤ Analysis of New Players With “Strong” First Hands.

✤ 100% increase conversion✤ 113% increase in hands played✤ 53% increase in net revenue✤ 66% increase in retention

✤ More Fun For the Player

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Page 93: The Risks & Rewards of Innovation in Game Design

Date

Thank You - [email protected]

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23Friday, August 2, 13