'This book teaches you detailed LiveOps techniques that show you how to keep your game appealing through engaging events, personalized experiences, and smart monetization.'
The following excerpt is from Running a Successful Live Service Game, Live Outside of Game Updates by Sergei Vasiuk with Volodymyr Dubrovskyi. The book was published December 3, 2024 by CRC Press, a division of Taylor & Francis, a sister company of Game Developer and Informa Tech. Use our discount code GDTF20 at checkout on Routledge.com to receive a 20% discount on your purchase. Offer is valid through January 1, 2024.
In recent years, the gaming industry has undergone a profound transformation with the rise of live service games, shifting the focus from mere unit sales to robust player engagement. This chapter sets the stage for understanding how live service games are designed to captivate players for years, turning this prolonged interaction into a lucrative revenue stream, and uncovering the mutual benefits for developers and players alike. Developers enjoy reduced risks and costs while continuously refining their games based on player feedback. Players, on the other hand, relish the social interactions and continuous updates that enhance their gaming experience.
Over the past decade, the gaming industry has witnessed a significant transformation with the rise of live service games. This shift from a focus on unit sales to one centered on player engagement marks a fundamental change in business models. Live service games are designed not just to offer a short campaign but to engage players for years, monetizing this sustained interaction through in-game purchases. This model now accounts for the majority of gaming revenue, attracting more developers to adopt it.
The move toward live services is driven by both developers and players. Developers benefit as they face lower risks associated with reduced development times and costs compared to traditional AAA titles. Additionally, they can incorporate ongoing player feedback into their updates, allowing for less polished initial releases but greater long-term returns through a strategy of rapid development and iteration. For players, the advantages include free-to-play options that let them try and play more games, as well as the enjoyment of social interactions and self-expression within online community.
The core idea behind live service games is that spending money is optional — players can enjoy the game without paying. This requires games to engage players deeply, motivating them to spend voluntarily. The main measures of success here are the lifetime and average revenue per user (ARPU). Unlike traditional models that depend on initial sales, this engagement-based approach can lead to greater earnings over time by focusing on sustained player interaction.
Live services spread their revenue potential beyond a single launch event. Traditional games often depend heavily on initial sales close to release, with success hinging on immediate public reception. In contrast, live service games aim to earn consistently over the game's life. They enhance their longevity through regular updates based on player feedback starting right after release. For traditional games, the launch is the climax, but for live services, it's just the beginning. Each update in a live service game can generate excitement similar to a new launch, especially with new features or high-profile collaborations.
Live service games also have multiple ways to generate revenue. In-game purchases, including cosmetic items like skins or progress-based items like equipment, are crucial. Battle passes offer rewards that players earn over time, encouraging regular play. Some live service games charge for initial access if they already have a solid player base and brand loyalty, like EA Sports FC. Advertising is another revenue source, more common in mobile but expanding to PC and console games due to their regular engagement.
LiveOps as a discipline lies at the heart of live service games that change the player experience after the title goes live or receives updates without having to release a new version of the game. Gone were the days when developing a game, uploading it to the platform, and enjoying life was a sustainable business model for a game with a long lifespan. LiveOps has become an integral part of any Free-to-Play game and must be carefully planned starting with the design and ending with a go-to-market strategy. Game as Service transformed box game into a living organic game that is in constant evolution and Live Operations gives players a fresh experience every day.
LiveOps is a practice of introducing frequent and data-driven events to players without involvement of the game Development team, aiming to maximize player Lifetime Value.
Maximizing LTV, which extends both the duration and monetization potential of player engagement, is the ultimate goal of all LiveOps initiatives.
Data plays a crucial role in LiveOps; it fuels the iterative nature of activities, which are continually optimized through analytics and A/B testing. LTV itself is a predictive metric, calculated based on data.
LiveOps is a practice, consists of ongoing activities that are consistently available to players. These activities must be continually refined based on player feedback and aligned with the overall product roadmap.
Events or campaigns serve as the fundamental components of LiveOps, forming the core of its strategy to engage players.
LiveOps has become increasingly popular as digital distribution and the prevalence of free games have significantly increased the number of games available. This shift has created a highly competitive environment where studios are compelled to keep players engaged with fresh content, timely updates, and ongoing support. LiveOps enables developers to effectively manage these demands, allowing for swift adaptations to player feedback and evolving technology trends.
Moreover, modern players have high expectations; they demand quick fixes to in-game issues and timely content updates. LiveOps strategies enable games to satisfy these expectations and maintain player interest through engaging content and immediate responses to feedback. Importantly, LiveOps provides vital opportunities for cost-effective content repurposing and enhancing core game features through events. It also opens up additional monetization avenues through subscriptions or battle passes, thereby securing the financial viability and success of games.
There are a lot of component parts and pieces that provide a holistic picture of live service games nevertheless when we talk about LiveOps, three main areas should be considered: acquisition, retention, and monetization. We will talk in detail about product metrics late, but first, let me briefly explain why these particular 3 areas define the scope of work for the LiveOps team. When it comes to live service game operations, in general, you should keep an eye on 3 relevant metrics:
Monthly Active Users (MAU) determines the overall success of a game and retention activities help keep it stable;
New Monthly Active Users (new MAU) shows how efficiently you work to attract new players and acquisition activities support game audience growth;
Gross Revenue illustrates the financial success of a game and monetization activities allows you to develop a sustainable business.
Figure 2.1. Acquisition involves bringing new users into the game and converting them into regular Monthly Active Users.
What is acquisition? Acquisition involves bringing new users into the game and converting them into regular Monthly Active Users. Consider the entire internet as a potential source of users who could be persuaded to join your game. There are numerous platforms like Facebook Ads or Google Marketing Platform that offer a variety of ways to attract new users. These platforms allow for targeted advertising based on a wide range of player profiles such as age, location, and gender. The targeting can be based on algorithms that find similar users or on data provided by users on platforms like Twitch, Twitter, or Reddit.
In addition to online methods, traditional mass media channels like TV or radio, as well as offline events like exhibitions, brand collaborations, or promotional tours, also play a role in user acquisition. The integration of influencers through platforms like YouTube, TikTok, or Instagram has become a significant trend over the past decade. Importantly, the game itself is a powerful tool for acquisition; organic growth through word-of-mouth often brings in a very loyal audience. While these methods represent just a fraction of the possible ways to attract new users, finding effective strategies for continually introducing new players is critical for sustaining and growing the Monthly Active Users (MAU).
Figure 2.2. Retention focuses on keeping Monthly Active Users engaged.
What is retention? Retention focuses on keeping monthly active users (MAU) engaged by helping them master the game, set goals, make friends, and re-engaging those who haven't played in a while. Picture managing a large entertainment center where newcomers need guidance, regulars seek new challenges or skills to enhance, and those drifting away are reconnected through social interactions. As the manager, your job is to create engaging events that increase the number of active days per month or extend the duration of play sessions.
Now, imagine applying this concept in games globally across multiple regions, each with distinct cultural traits. This scenario demands tailored strategies to onboard new users and keep veteran players, who may have over 500 hours of gameplay, interested. Beyond just regional events and missions, it's crucial to analyze and refine the onboarding process for new players and address common issues that cause lapsed players to leave. Adding personalized tips and clear goal-setting can help reduce sudden player drop-offs.
Additionally, it's vital to continually assess and optimize how promotions and events are received to ensure they resonate well with the players and keep them engaged. These efforts are just a few key aspects of retention. Effective engagement is essential; without it, the game risks losing its player base entirely.
Figure 2.3. Monetization involves generating gross revenue by leveraging players' gaming habits and financial behaviors.
What is MONETIZATION? Monetization involves generating gross revenue by leveraging players' gaming habits and financial behaviors. Consider a manager of a chain of entertainment centers who must tailor pricing policies to the economic conditions of each region and adapt sales strategies to fit cultural nuances and audience sizes. Similarly, in gaming, if you can attract new players and keep your audience engaged with compelling content, they are likely to spend money.
The gaming industry offers various monetization methods tailored to different game types. For example, casual games typically have a large number of daily active users (DAU) and a higher rate of making purchases, although spending amounts might be lower at certain game levels. Mid-core games may have fewer daily users but can generate significant revenue from a small group of heavy spenders, often referred to as "whales," who may spend hundreds or even thousands of dollars. Additionally, many games utilize "Loot Boxes"—randomized selections of virtual items—as a primary revenue source. This strategy taps into the players' love for the excitement and chance of winning big, similar to casino. These are just a few ways games can be monetized, but integrating these strategies thoughtfully into game design from the start can significantly enhance the chances of releasing a financially successful title.
To effectively implement strategies within acquisition, retention, and monetization, it's essential to recall that the history of video gaming is shaped by three fundamental areas: technology, content, and distribution. These same three driving forces also guide the LiveOps discipline for precise game operations and audience management:
LiveOps Practice: This involves content production by understanding regional differences and tailoring activities to support the main game's key performance indicators (KPIs). For Monthly Active Users (MAU), this might include engagement events or campaigns to re-engage lapsed players. For acquiring new MAU, strategies could involve collaborations with celebrity influencers or guiding new players through their initial gaming experience. For boosting gross revenue, personalized offers or events outside the game can be effective.
Operations Management: This area encompasses Data, Store, or Campaign Management, and Data Sciences, which utilize both in-house toolsets and third-party platforms (e.g., Steam, Microsoft, or Apple Stores) to operate publishing and marketing, ensuring effective distribution of content to players.
LiveOps Toolset: This is an engine of LiveOps practice and an integrated solution leveraging technologies that not only supports the game studio's internal functionality but also combines features from existing market platforms like Google, Facebook, or Microsoft.
Figure 2.4. Three driving forces that shape LiveOps discipline for precise game operations and audience management.
Thus, on the one hand, we have "Practices for acquisition, retention, and monetization"; on the other hand, "Technologies, Data, Toolsets"; and in the middle is "operations management." This arrangement clearly shows how critical it is for these three driving forces to work together to meet the needs of a live service game. Moreover, it is essential to outline the key elements of a successful LiveOps strategy which are pivotal in orchestrating an engaging and profitable live service game:
Segmentation: Vital for targeted promotions, segmentation involves categorizing players based on factors like location, age, gender, behavior, and preferences. This allows for precise promotion and tailored offers to different player segments, enhancing engagement and conversion rates.
Game Balance Management: Central to maintaining player interest, this system enables adjustments in pricing, the introduction of new items, modifications to existing items, and the removal of unpopular ones. By managing these elements dynamically, LiveOps can keep the game fair and exciting.
Remote Configurations: This technology empowers LiveOps to update and enhance the game's experience remotely without the need for players to download new updates. It streamlines the process of iterative improvements and ensures a seamless player experience.
Personalized Offers: Crafting compelling offers is crucial for boosting monetization. These can range from first-purchase bonuses and daily rewards to exclusive gifts that attract new players and retain existing ones by continuously providing value.
Analytics: Effective LiveOps requires comprehensive analytics to measure the success of different strategies and offers. By analyzing data, LiveOps can identify what works, what doesn’t, and refine their approaches based on actual performance metrics.
A/B Testing: This is a powerful tool for understanding player preferences and behaviors by testing variations of game elements. A/B testing helps in optimizing the player experience, thereby improving retention and conversion rates.
Event Implementation: Engaging events that resonate with real-world happenings or in-game milestones can significantly enhance player engagement. Whether tied to global events, holidays, or unique in-game challenges, these activities help to keep the game environment dynamic and engaging.
Community Interaction: LiveOps strategies must include active community engagement. Influencer and community management play crucial roles, acting as bridges between the players and the developers. This interaction not only improves player satisfaction but also provides valuable feedback for ongoing game development.
By integrating these key elements into the LiveOps strategy, game developers can ensure a vibrant, engaging, and continuously evolving gaming experience that meets the complex demands of today's gaming landscape.
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