🎙️ Mastering F2P Cosmetics Monetization: Insights from Anton Bernstein (CEO Pocket Worlds)
Learn key strategies, player motivations, and market insights from industry veteran Anton Bernstein of Pocket Worlds.
So, you want to monetize cosmetics in your free-to-play game, right?
It should be easy enough and pretty straightforward. Right?
Well, maybe it’s not so easy. There are some pretty tricky issues and critical questions:
What sells in terms of cosmetics?
What kinds of players tend to buy? How much?
Why do players buy different types of cosmetics?
How do secondary markets impact cosmetics sales?
And much more…
Today, we kick off, hopefully, a series on the business of selling cosmetics in F2P games.
We are joined by Anton Bernstein, CEO of Pocket Worlds, who is doing about $30M in primary market cosmetics sales in their game Highrise.
Stay tuned for the key lessons and learnings from Anton below!
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Speakers:
Anton Bernstein. CEO at Pocket Worlds.
Joseph Kim. CEO at Lila Games.
Cosmetics monetization has become a cornerstone of many successful free-to-play games. In this discussion with Anton Bernstein, CEO of Pocket Worlds, we delve into the intricacies of selling cosmetic items and how developers can leverage this strategy effectively.
Understanding Player Motivations
Cosmetics aren't just about looking good – they tap into deep player psychology:
Status and Identity: Players buy cosmetics to showcase their status and express themselves in-game.
Collectibility: Some players are driven by the desire to complete collections or obtain rare items.
Social Signaling: Cosmetics serve as a way for players to fit in or stand out within the game's community.
Self-Expression: Many players use cosmetics to create a unique in-game persona that reflects their personality.
Key takeaway: Successful cosmetics monetization requires understanding and catering to these diverse motivations.
Game Design Considerations
Not all games are equally suited for cosmetics monetization:
Multiplayer Focus: Cosmetics work best in multiplayer environments where players can showcase their items.
High Engagement: The more time players spend in-game, the more likely they are to invest in cosmetics.
Visible Items: Consider the game's perspective (first-person vs. third-person) when designing cosmetic items.
Fair Play: Games emphasizing skill over "pay-to-win" mechanics often have more successful cosmetics monetization.
Tip: Design your game with cosmetics in mind from the start, rather than trying to add them as an afterthought.
Primary vs. Secondary Markets
Many successful games incorporate both primary (direct sales) and secondary (player-to-player) markets:
Primary Market: Offers control over item releases and pricing.
Secondary Market: Can drive engagement and create additional value for items.
Economic Management: Carefully balance currency sinks (like transaction fees) to prevent inflation.
Risks: Secondary markets can be prone to exploitation and require careful monitoring.
Warning: Implementing a secondary market adds complexity and potential risks—carefully consider whether it's right for your game.
Cultural Differences in Monetization
Eastern and Western markets often have different attitudes toward cosmetics and monetization:
Western Markets: Generally prefer "fair" systems where cosmetics don't affect gameplay.
Eastern Markets: More accepting of systems where players can quickly gain power or status through purchases.
Conversion Rates: Some games see dramatically higher conversion rates in Eastern markets.
Design Implications: Consider your target market when designing your monetization strategy.
Key Metrics and Best Practices
To succeed with cosmetics monetization, keep an eye on these essential factors:
Equip Rates: Track how often purchased items are actually used.
Conversion and ARPU: Monitor overall monetization performance.
Economy Health: Watch for signs of inflation for games with secondary markets.
Player Feedback: Pay attention to community reactions to new cosmetic items.
Best Practice: Continuously iterate on your cosmetics offerings based on data and player feedback.
Conclusion: Cosmetics monetization can be a powerful tool for free-to-play games but requires careful planning and execution. By understanding player motivations, designing your game appropriately, and closely monitoring your in-game economy, you can create a sustainable and profitable cosmetics system that enhances the player experience.
"People buy cosmetics because they care about their status in that universe, which means they need to care about that universe."
- Anton Bernstein
Focus on creating a compelling game world, and the cosmetics will follow.
🌇 Gamescom Event Alert! Product x LiveOps Symposium August 20 at 4PM - 5:30PM
Hey GameMakers,
If you’re going to Gamescom, make sure to sign up for the Product x LiveOps Symposium:
Event Details:
Date: 8/20 (Tuesday)
Time: 4 PM - 5:30 PM
Location: KolnSky, Cologne
Keynote Session: The Story Behind and Lessons Learned from Splitgate
Ian Proulx, CEO 1047 Games
Panel: Who’s Winning in Gaming?
Anton Backman, Partner at Play Ventures
Shanti Bergel, Managing Partner at Transcend Fund
Josh Chapman, Managing Partner at Konvoy
Jens Hilgers, Founding Partner at Bitkraft
I think cosmetics have evolved from just visual aspect to auditory aspect. From games like Counter strike, which has purely visual aspect, to the game like Valorant & recently Dota 2 contains sound effect along the cosmetics which can alter the player's behaviour; psychologically they feel more confident and enjoy the game.