This is a segment of the original article. Click the "Read More" link at the bottom of the article to see it in full. I did not write this nor do I claim to. This is all curated content that I have read and found interesting.

The difference in active users between 100% and 10% churn shows a huge increase under the curve for the lower churn rate.

For better or worse, much of the games market is moving to games-as-a-service. Once upon a time, this was known as the MMO business model, because all MMOs were games-as-a-service, and virtually nothing else was.

Obviously, a lot of GaaS games won’t be MMOs. Candy Crush Saga is a service, but it’s not an MMO. Nor does GaaS mean the game has to be free to play with upsells via microtransactions. GaaS is a business strategy, and F2P is a revenue model.

In the past we’ve seen services of all sorts drive revenue in lots of ways:

  • free sampling to get you in the door
  • a la carte offerings which let you dip into a service without an ongoing commitment
  • periodic upgrade offers to take you from that free tier to something with recurring payments
  • subscription tiers — a low basic offering and a few richer ones catered to specific demos, which retain the ability to a la carte for specific features
  • individual one off upsells for special events that are never covered by the sub tier

In fact, cable companies and phone service both do just about all of the above at once. So there’s lots of ways to make money, if you …read more