Free-to-Play Model

Empowering Players in a F2P Economy

The free-to-play (F2P) model may seem counterintuitive, yet its success is evident, as demonstrated by hit titles like Fortnite, which generated over $9 billion in it’s first two years, and mobile giants Candy Crush Saga and Clash of Clans, both achieving billions in revenue.

How does the F2P model succeed?

According to a paper published by researchers at the University of Vienna, purchasing motivations within the F2P model can be categorized into four key factors:

1. Unobstructed Play

Unobstructed play focuses on players' desire for uninterrupted gameplay. Players often purchase virtual items to skip wait times or revive characters after losing. Research shows that frustrations, such as being stuck, can drive spending. In Warped Universe, we will prioritize a smooth gameplay experience that encourages organic purchases rather than frustration-driven spending.

1. Social Interaction

Social interaction motivates players to enhance their gaming experiences with friends through personalization and shared events. Studies indicate that gamers often buy virtual items to express themselves and impress peers, with over half of paying players valuing social features. Warped Universe will foster meaningful social connections, allowing players to share experiences and personalize their gameplay.

1. Competition as a Motivator

Competition inspires players to improve their skills and showcase achievements. While purchasing virtual items for an advantage can be tempting, it raises concerns about "pay-to-win" mechanics. Warped Universe will sidestep this issue by tying gameplay enhancing items to in-game achievements, ensuring players feel accomplished without compromising game integrity.

1. Economic Rationale

Economic factors, such as reasonable pricing and special offers, influence purchase motivations. Players are more likely to invest when they perceive good value. Warped Universe emphasizes cost-effectiveness and offers incentives for token holders, including exclusive discounts and early access to content. Our seasonal model means that new content becomes available as seasons change, encouraging ongoing engagement and investment. By offering promotions and balancing free and premium content, we cultivate positive relationships with our community, enhancing their gaming experience without feeling exploitative.

In-Game Purchases Transform Game Revenue

As highlighted, the free-to-play model effectively capitalizes on player motivations, leading to substantial in-game spending. Games dominate movies and music in revenue because they sustain deeper levels of engagement over time. Recurrent consumer spending is a massive driver of this revenue, with in-game purchases playing a significant role. This was highlighted in Take-Two’s 2023 Q4 earnings report, which showcased recurrent consumer spending grew by 94%, accounting for 79% of total revenue.

Player Ownership of Their In-Game Purchases

While the traditional F2P model drives in-game spending, blockchain transforms this closed system into a cyclical one. Typically, player purchases are locked within the game, benefiting only the studios. Blockchain changes this by allowing players to own their in-game purchases as NFTs, enabling trading and transfers on secondary markets or retaining across seasons.

This is particularly impactful in our seasonal model, where items and content are time-limited. Players can acquire past seasonal items or revisit previous content only by purchasing cosmetics or renting a Battle Pass on secondary markets, adding value that extends beyond its immediate use.

By merging the F2P model with blockchain, we enhance player engagement and foster a community where players are active beneficiaries of the game’s ecosystem.