User:Warcoin/Monetization

Warframe Monetization
Warframe uses a closed source model with copyrighted content and private servers. While Warframe is called free to play it is not free to produce, develop or maintain, and uses monetization techniques. The basics of monetization revolves around the number of users and the number of purchases. Monetization involves increasing the number of players and the number and value of purchases. An engaging game and valuable purchases increase it but also the measures and techniques aimed at improving the probability of a purchase.

Flow and impulse purchase
One of the most important elements is the flow state. In flow state the player will be immersed in the game. His focus will be on that activity and will be more susceptible to purchase elements to improve or complement the gameplay or the identification with the game world. The impulse purchase is a purchase done “in the heat of the moment”. Less rational and more pleasure oriented. Players will purchase more often if it appeals a basic instinct.

ARPU
The ARPU or Average (Recurrent) Revenue per User is the more important concept in game monetization and comes from Telecom industry. A steady and growing income per user provides the basis of the revenue.

Subscription model and one time fee
The subscription and one time payment models are the base on which a monetization system will measure. Under standard microeconomics theory a F2P model would capture the maximum revenue by fetching the highest amount any player will pay.

The one time fee, has been used to in some games. In this case once the game is bought the online services are provided by free.

Pay to win
Pay to win monetization forces users to higher and higher purchases to obtain the best game rewards. In a pure Free to Play model every item can be obtained through the game and in a pure Pay to Win would require a purchase. In practice the playtime needed to achieve it or the endgame expectations will force a purchase to stay competitive in a reasonable time.

Warframe Market
Warframe purchases are mediated using the in-game currency platinum. Platinum can be using different payment systems including PayPal and Steam Wallet.

Warframes, Weapons and Sentinels
These are the main gameplay purchases. Every warframe, weapon and sentinel can be obtained in game (with a few event exclusives that cannot be bought). In this case the purchase is balanced against the time needed to obtain the item, build it, farm the components or the frustration of RNG. The price of every item ranges from 60 platinum to 700 or more for bundles.

Different frames have different prices. The purchase process and price decision are affected by this in several ways. Once a cheap warframe has been bought buying a new one with premium price usually only focus on the price difference, making the purchase more common.

Formas and Orokins
The Forma and Orokins are required to play the gamed at any competitive level. The number of Orokins required to boost all competitive items, let alone all of them, is above the number supplied in game.

Boosters and Revives
Boosters and revives are targeted to time limited players that need to maximize the time they play.

Customization
There is an endless supply of customization: helmets, bodies, skins, capes, colors... The list in endless. The need to identify with the player avatar, differentiate with others, reflect own state and aesthetics is one of the basics of Free to Play models.

Completion
The motivation to own every possible element of the game provides the highest possible revenue. The marginal price of every customization is zero so if every player purchases every possible element the revenue is the maximum.

A particular element of completion is where some warframes or weapons are always displayed with a particular kind of customization and the ones obtained by the user don't provide it.

It has been suggested that team pairing is adjusted in a way that all user will see, be exposed, all new items in game in a short time after they are released.

Multiplicative
Every customization or new element purchases provides additional capabilities to purchase. A new warframe can use extra Forma, skin, idle animation.

Playing time
The longer a player stays in the game the more opportunities to purchase. A few ways to increase this time, apart from the incentive to play are used.


 * The alerts keep players alert in a 24 hour cycle. As the number of helmets missing diminish the opportunity cost is higher in case an alert is missed. Some of them reported anxiety and lack of sleep.


 * Components collectors also require an 8 or 4 hour cycle forcing users to access every few hours or lose them. The kubrow maintenance cycle increases this effect.


 * Login rewards are highest when user log in every day.


 * Events require an around the year cycle of play or risk losing weapons and exclusive items.

Overall, the user is expected to login and interact on a daily basis. The more the logins the highest the exposure to the game.

Honor of the Lotus
This is the most important element in Warframe monetization. This feature enhances the price gouging up to 4 times. An user would normally try to maximize his purchasing power using the 75% discount all the time. However, in case he or she needs to buy immediately or doesn't negotiate the random nature of the discounts he or she may be subject to four times the ideal purchasing price. Moreover, this system makes the user calculate this price over the best possible price, not over the real price.

Time limited sales and discounts, bundles
Basic elements of the process. Limited availability provides and incentive to buy and bundles change the purchasing decision from, to buy or not, to, is this cheap enough. Some items have even been sold as both time limited sales and bundles like the Day_of_the_Dead_Weapon_Skin_Pack and Day_of_the_Dead_Weapon_Skin_Pack_II

Mod pack
The mod packs are mostly related to gambling in nature where anticipation and chance player the bigger role. Repeated purchases can be obtained if the player is engaged in gambling behavior. One game model feature, mods, is similar to card trading games. Mod packs can be used to monetize this feature.

User error and misinformation
User errors on purchases or misinformation on prices will also increase the purchases. Several possible mistakes have been reported:


 * Users rush the build time when it is not needed
 * Revives are thought to be a required mechanic
 * While it is corrected now, some bundles would be purchases even when all the items where already owned.

Summary and future developments
Warframe monetization techniques have been described as formally correct but extremely aggressive for non informed users. The fact that some excessive purchases can be attributed to player "mistakes" reverses the attribution of the incorrect pricing.

The reserved nature of monetization techniques and revenue makes difficult to asses the reality of this situation. In any case, Warframe includes most of the described monetization techniques.

There are few expected developments in the Warframe model:
 * New customization like new surface materials
 * Developing aggressively the card game nature of the mod system
 * Creating a game auction house
 * Develop tie-ins with Steam like the previous Summer and Winter sale only items.