With the rise of Web3 and virtual currency, game developers have the responsibility of creating engaging and immersive experiences for their players while also managing in-game economies. In-game currencies can help influence player behavior for better or worse. Make sure to read until the end because we shed some light on how Helika can help with in-game currency analytics.
Key Takeaways:
- Game analytics is essential for in-game currency systems
- A balanced in-game economy with real-world money (crypto) can increase virtual purchases.
- Understanding your playerbase is required for optimal monetization strategies.
- Web3 assets should give tangible benefits while keeping the gameplay fair.
Data Analytics For Web3 Virtual Goods
Before we dive deeper into how Helika can help with in-game currency analytics, let’s first understand the importance of data analytics for Web3 virtual goods. In-app purchases are a crucial source of revenue for game developers, and analyzing purchase patterns and player behavior is essential to optimize this revenue stream. With the advancements in technology, we now have access to real-time data analysis, giving us valuable insights into our players’ actions and preferences.
Without it, game developers are left guessing and making decisions based on assumptions rather than hard data. This can result in missed opportunities for revenue growth or even a poorly balanced in-game economy (which we will discuss later in this article).
In-game currencies are a vital aspect of online games, and their management plays a crucial role in player engagement and retention. With the introduction of blockchain technology, we have seen an increase in the use of virtual currencies, especially in Web3 games. These virtual assets can hold real-world value (such as cryptocurrencies), making their management and analysis even more crucial for game developers.
Understanding Key Metrics For Virtual Economies
With the knowledge of the importance of data analytics for in-game currencies, let’s now explore some key metrics that game developers should consider when analyzing their virtual economies. These metrics are essential to understand the health of your game economy and make informed decisions to optimize it.
1. Retention Rates
Although a high retention rate doesn’t automatically mean high revenue, it is an essential metric to track for any game economy. Retention rate refers to the percentage of players who continue playing your game after a specific period (usually 7 days, 30 days, or 90 days). It gives insight into how engaged and satisfied players are with your game and its economy. With more time played, they are invested in your game, and as a result, more likely to spend money on in-game items or currencies.
2. Virtual Currency Usage
Tracking the usage of in-game currency is essential to understand player behavior and engagement. This includes how much currency is being earned, spent, and saved by players. It can also reveal any imbalances in the economy, such as currency inflation or deflation. Understanding these patterns can help game developers adjust prices, rewards, and other aspects of the economy to maintain a healthy balance.
3. Conversion Rates
Conversion rates refer to the percentage of players who spend real money on in-game currencies or items. It is a crucial metric for measuring the success of monetization strategies and identifying areas for improvement. A low conversion rate may indicate that prices are too high, while a high conversion rate could mean potential growth opportunities through higher-priced items.
4. Average Revenue Per Paying User (ARPPU)
ARPPU is another important metric that helps game developers understand the average spending habits of players who make purchases in their games. It can be calculated by dividing the total revenue generated from paying users by the number of paying users. ARPPU can help game developers determine the effectiveness of their monetization strategies and identify opportunities to increase average spending per user.
5. Churn Rate
Churn rate measures the percentage of players who stop playing your game over a specific period. It is an important metric for understanding player retention and identifying potential issues that may be causing players to leave. A high churn rate could indicate dissatisfaction with gameplay, economy, or other elements of the game. Tracking churn rate can help game developers make necessary changes to retain players and attract new ones.
6. Monthly Active Users (MAU)
MAU is the number of unique players who engage with your game in a given month. It is a key metric for measuring the overall popularity and success of a game. A high MAU indicates strong player engagement, while a decline may signify issues with gameplay or competition from other games. Tracking MAU can help developers determine the effectiveness of updates and changes to their game.
7. Lifetime Value (LTV)
LTV measures the total revenue generated by an individual player throughout their entire time playing the game. This metric is essential for understanding the long-term profitability of your game and identifying strategies to increase LTV. For example, offering special rewards or promotions to loyal players can increase their LTV and overall revenue for the game.
Which Virtual Currencies Are Right For Your Game?
On top of traditional in-game currencies, many games also offer virtual currencies as a way for players to purchase items or progress in the game. Virtual currencies can enhance the immersive experience of a game by allowing players to feel like they are part of a real world economy.
There are different types of virtual currencies used in various games, ranging from simple coins or gems to more complex systems with multiple forms of currency. Some games even have their own unique form of currency that is only found within that specific game.
Blockchain based games take this a step further, using real-world cryptocurrency as a form of currency within the game. This adds an extra layer of value to in-game items and can also generate revenue for developers through player-to-player transactions.
Choosing the right virtual currencies for your game depends on various factors such as the game’s genre, target audience, and desired gameplay experience. Some games may benefit from a more realistic and complex virtual economy, while others may thrive with a simple currency system.
It is also important to regularly monitor and adjust the economy in your game to ensure it is balanced and not negatively impacting the game’s performance. This can include adjusting the rate at which players earn or spend currency, as well as introducing new methods for obtaining virtual currencies.
With the ability to create immersive experiences, working with a data analytics team to improve the economy in your game can also lead to increased player engagement and revenue. Data analysis can help identify trends in player behavior and inform decisions on how to adjust the virtual economy.
Best Ways To Create a Balanced Economy (and gameplay)
There are several ways to create a balanced economy and gameplay in your virtual game. One method is by using hard currency, which is a form of virtual currency that can only be obtained through real-world money. This ensures that players cannot simply buy their way to success in the game and creates a fair playing field for all players.
Additionally, considering the overall game experience is crucial when designing a virtual economy. For example, if your game is targeted towards younger players, it may be more appropriate to have simpler and easier-to-understand currency systems.
Introducing rare items or limited edition items into the game can also help balance the economy and add value to certain virtual currencies. By making these items scarce, players are encouraged to spend their currency wisely and adds an element of excitement and competition in obtaining them.
It is important to have a hard limit on the amount of virtual currency that can be earned or purchased within the game. This prevents players from hoarding large amounts of currency and creates a more equal playing field.
Avoiding giving players an unfair advantage by balancing the effectiveness of in-game items. A sword for example may provide a boost of ability to give tangible benefits to a player, but it should not be so overpowered as to make other items obsolete. This keeps the economy in check and ensures players have equal opportunities to succeed.
An easy on-boarding process should also be considered. It wouldn’t be fair if a player can’t access certain features in the game because they don’t understand crypto wallets. Partnering with an on-ramp that seamlessly integrates credit cards or other forms of payment into the game can make it more accessible for players to participate in the economy.
Final Thoughts
As you can see, there are different ways that in-game currencies can affect the overall balance and success of a virtual economy. That said, they can still greatly enhance the gaming experience for players by adding a level of depth, strategy, and competition. As the world becomes more digitally focused, incorporating virtual currencies into games may become even more prevalent and important.
At Helika, we specialize in Web3 game analytics and have already worked with leading game studios to optimize their in-game economies. If you’re interested in implementing virtual currencies into your game or would like to improve your existing system, don’t hesitate to reach out to us for free consultation and support.
