Tencent Crossfire

Tencent, one of the biggest and most influential IT Corporation in China, had launched its signature show cartridge clip person shooting adventure Crossfire in 2008. Based on inform statistics, it has over a million online users every day1 and always ranked vizor place in a lot of plump for websites. Many former(a) IT companies always pursue profits when forming their price dodge, but Crossfire is free to do, which seems singular and risky. Ultimately, there must be otherwise ways for them to generate the exchange to operate the system as well as to earn profits. rootagely, Tencent promised Crossfire is alone free to play, but the underlying strategy is smart and shocking. People whitethorn non believe it because everybody knows there is no free lunch in the world. Anyhow, when they give a try, most of them feel surprised that Tencent might sire kept its promise. It is definitely free to register an account and download the game package. Tencent provide not charge you a cent for it even when you literally play the game. However, after few days trail play, the commitment Tencent do has become pale and weak.That is to say, not only you have to stomach, you have to pay a lot. Crossfire is a game in which you will have a gun battle with other online users. People try their best to charge their enemies with the weapons in their hands. The weapons are usually a gun or other ammunitions, but they are virtual goods. When you are new players, it is capable for you to kick the bucket with a simple pistol because you are protected from high aim players. Yet you will find it is getting harder and harder facing other warhorse players with simple, basic weapons in your hands when you finish the rookie training.Thus, in auberge to survive, to save your dignity, or if you are already prone to the game, you have to leveraging the weapons you need. The higher level the weapon is, the more it costs you. In fact, this strategy is a very clever move in the onl ine game market. By adopting freemium strategy, Tencent enjoys 29. 5% share of revenue in China2 and is a nightmare for its competitors. First of all, the revenue is from creating and selling virtual goods at almost zero cost. Moreover, it is a great opportunity to expand their influence in the market. Sometimes, the choices of a stripling force come on be random.When playing a game, all they want to do is to have fun with their friends. So if many teenagers are attracted by freemium game at first place, the guys left out will soon agitate to the same game. When more and more people are playing this game, the kind influence will emerge and spread out rapidly, and other products from Tencent can easily take advantage of this. Whats more, it threatens or even damage its competitors in the market. By stealing customers from other games, Tencent compresses the room for other companies since the time people spend on online games are stable.That is, they would not double their play time when he plays two games. Therefore, once a customer is attracted by Crossfire, the profit of the other game which offers hourly based payment will be hugely decreased while Tencent is risk-free with its freemium strategy. Also, Tencent is a order that is very good at modeling consumers behaviour. Tencent knows that people dont mind to give a try for free stuff because they theorize they have nothing to lose. This could be true in reality, but not in Tencents world.Online games are addictive, especially for teenagers. Instead of blocking teenagers out by expensive payment at first place, Crossfire let them in and enjoys the game. Then, as time goes, the simple challenge cannot satisfy their needs. Finally, they are addicted to the product and willing to spend money on it. Similarly, the proof is not hard to find in the Apple store, in which the freemium games are booster cable all app revenue models and are nowaccounting for more than 65% 2of app revenue. Finally, freemium ag e has come.As a consumer, it is necessary to know the fact laughingstock the fairy tale of free. But for a company, the way of earning money is ever-changing all the time. As the saying goes, nothing ventured, nothing gained. Undoubtedly, Tencent is just the absolute explanation for the proverb. Reference 1. http//en. korea. com/blog/tech/games/crossfire-%E2%80%9Creaches-2-million-users-in-china%E2%80%9D/ 2. http//www. buzzom. com/2011/09/online-gaming-market-in-china-reaches-usd-1-3b-chinese-firms-dominant/ 3. fit in to Flurrys analysis http//blog. flurry. com/? Tag=Freemium