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Mastering Retention Podcast

Player segments yield stronger monetization

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https://www.youtube.com/watch?v=0iH52T_YxHw⁠

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🎙️ Mastering Retention Podcast: Balancing Monetization and Player Experience with Sam Abbott

Host: Tom Hammond, Co-founder of UserWise

Guest: Sam Abbott, Head of Monetization at Rec Room

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Introduction

👋 About Sam Abbott:

Head of Monetization at Rec Room.

Background in economics from Harvard University.

Began his career in finance before transitioning into the gaming industry.

Worked at EA, Playfish, and Scopely.

Contributed to the development of Star Wars: Galaxy of Heroes.

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Journey into Gaming

📈 Transition from Finance to Gaming:

Left finance after realizing it wasn't his passion.

Entered the gaming industry as a data analyst during the rise of social games.

Gained experience in data science, analytics, product management, and production over nine years at EA.

🎮 Role at Scopely:

Spent two years honing his craft in product management.

Worked on mid-core RPGs, focusing on optimizing monetization strategies.

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Rec Room Overview

🏠 What is Rec Room?

A mass-market virtual world platform powered by user-generated content (UGC).

Started as a VR app but has expanded to be radically cross-platform, including consoles and mobile devices.

Focuses on deep avatar customization and social experiences.

🔄 Comparison with Roblox:

Both platforms leverage UGC.

Rec Room emphasizes a deeper attachment to personal avatars and spaces.

Offers more "channel surfing" experiences compared to Roblox.

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Game Economy and Monetization

💰 Pay-to-Win Mechanics:

Discussed the presence of pay-to-win elements in Star Wars: Galaxy of Heroes.

Acknowledged that while players can spend money to gain advantages, it doesn't necessarily sabotage the experience for non-paying players.

Emphasized the importance of matching monetization strategies with player expectations to maintain a sustainable relationship.

⚖️ Combat Balancing without Pay-to-Win:

Advocated for strategic decisions and investment choices that cannot be undone by simply spending money.

Highlighted the need to build breadth in gameplay to keep players engaged without relying on power creep.

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Matching Player Willingness to Pay

🎯 Understanding Player Segments:

Stressed the importance of not exceeding what players are willing to pay.

Suggested using data analysis and A/B testing to identify spending patterns among different player segments.

🛍️ Designing Offers:

Once player segments are identified, tailor offers and features to match their spending habits.

Encouraged creativity in designing monetization strategies that align with player expectations.

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Avoiding Power Creep in Game Design

🚫 Breaking the Cycle:

Shared an example involving the introduction of a powerful character in Star Wars: Galaxy of Heroes.

Explained how succumbing to short-term gains through power creep can lead to long-term regrets and player dissatisfaction.

🔄 Sustainable Strategies:

Emphasized the importance of respecting player investments.

Recommended focusing on long-term engagement rather than short-term monetization spikes.

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Balancing Player Experience and Business Goals

🔍 Precision in Principles:

Argued that product managers should have clear principles regarding ethics in monetization.

Decisions should align with these principles, putting player experience above short-term revenue.

🏷️ Ethical Monetization:

At Rec Room, one of the guiding principles is "It's a small world," which emphasizes fairness and trust.

Avoid practices like changing the value proposition after a purchase, which violates player trust.

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Role of Analytics in Game Development

📊 Harnessing Data:

Advocated for analytics teams to proactively explore data and share insights with the game team.

Encouraged a collaborative approach where data analysts contribute to strategic decision-making.

🔄 Measuring Success:

Highlighted the importance of using analytics to measure the effectiveness of initiatives.

Emphasized moving from averages to distributions to get a clearer picture of player behaviors.

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Importance of Segmentation

👥 Player Segmentation:

Discussed the role of segmentation in understanding diverse player behaviors.

Suggested that segmentation should focus on optimizing the player journey and onboarding experience.

🎯 Targeted Interventions:

Used segmentation to design personalized experiences and offers.

Cautioned against over-segmentation that could fragment the player community.

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Sustainable Monetization Practices

🔄 Moving Away from Aggressive Monetization:

Critiqued the reliance on aggressive monetization mechanics like loot boxes and pay-to-win.

Emphasized the need for sustainable and player-friendly monetization strategies.

💡 Focusing on Core Monetization:

Suggested that nailing a powerful monetization method allows developers to avoid nickel-and-diming players.

Transparency and fairness are key to maintaining player trust.

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Tips for Improving Player Retention

🌄 The Bethesda Moment:

Referred to the impactful first impressions in games like stepping out of the vault in Fallout.

Recommended over-investing in creating awe-inspiring moments that hook players from the start.

🎯 Focus on Aspirational Experiences:

Urged developers to prioritize features that deliver a "wow" factor.

Cutting non-essential elements to focus on impactful experiences can boost retention.

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Conclusion

📞 Connecting with Sam Abbott:

LinkedIn:

Sam Abbott⁠

(Note: Placeholder URL)

Invited interested individuals to reach out, especially those passionate about UGC and Rec Room.

📣 Rec Room Opportunities:

Mentioned that Rec Room is growing rapidly and hiring across various disciplines.

Expressed excitement about the future of UGC and its role in the gaming industry.

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