Im considering launching some hosted services that could help game studios retain 20% more of their gamers. Would game studios pay for this and if so, how much? Im estimating a price of $0.05 for every gamer that gets exposed to the retention service. Would that be compelling? Or am I asking the wrong question? Are game studios more apt to just buy more installs and live with the same retention rate? If so, why? Here is my logic behind the pricing: I assume that if game studios are paying $1CPI and retaining 15% of users 30 days after, then currently, a retained user costs $6.67 ($1/15%). If my hosted service could drive a 20% relative lift from 15% to 18% then cost of retained gamer drops for $6.67 to $5.56 ($1/18%) a savings of $1.12 per retained gamer .or $0.168 for every gamer that gets exposed to the retention service. If I only kept 30% of the value then the price would be $0.05/gamer that gets exposed to the retention service. Thanks in advance for your feedback.
