At today’s Casual Games Forum in London YoYo Games Ltd CEO Sandy Duncan spoke of the merits of micropayments.
Micropayments (wiki article) are transactions with a unusually small monetary value often used to unlock extra features in games. In 2007 90% of Habbo Hotel’s $60M+ revenue came from the sale of virtual goods.
I didn’t buy a £295 ticket to attend the conference so didn’t see Sandy taking part in a debate on the best business models of casual gaming companies. CasualGaming.biz however were present and to quote Will Freeman from the site:
“If you look at it as something like gambling in reverse, where every now and then you have to put in a little money, it is very addictive,” added YoYo Games CEO and founder Sandy Duncan. “It plays on human behaviour, and in that context out of all the funding models microtransactions are perhaps the most pervasive and important.”
– Will Freeman, CasualGaming.biz
For over a year now YoYo Games have expressed their desire to eventually sell some of the best of games from more than 40,000 that have uploaded to their website.