Ouya CEO: Game Sales "Better Than We Expected"

[StewShearerOld]

Ouya CEO: Game Sales "Better Than We Expected"

Only 27% of Ouya owners have purchased games for the Android-based console.

Despite the Ouya raising <a href=http://www.escapistmagazine.com/news/view/118982-Ouya-Kickstarter-Ends-with-900-of-Goal-Raised>nearly $9 million during its Kickstarter there were still many who had doubts about the indie console's chances of success. Doubts that some would undoubtedly argue to be well founded, especially following its launch and <a href=http://www.escapistmagazine.com/articles/view/editorials/reviews/10469-OUYA-Review-More-Whimper-Than-Bang>a mediocre reception from critics who were fast to note several problems with the console and its hardware. Now, it's been revealed that since the Ouya's launch only 27 percent of its user-base have actually purchased any games. According to Ouya CEO Julie Uhrman however, things are going "better than we expected."

"Monetization on Ouya is so far better than we expected," Uhrman said, commenting on the sales figures. Despite this Uhrman didn't deny that actual game purchases are on the low side. "It takes time to build what traditional consoles have had decades to build. But really, I think it's too early to draw such broad sweeping statements about how a platform is going to perform." According to Uhrman the Ouya's current sales are indicative of many players experimenting with free-to-play versions of games before buying them.

There is some evidence to back this up. Thirteen of the Ouya's twenty highest grossing developers reported an average 8 percent rate of players converting from free to paid versions of their games. "There are a lot of social and mobile app developers that would kill for an 8 percent attach rate on a platform that's 30 days old," Uhrman said. "I believe that by the end of the year, we'll see a few developers telling us they've made more than a million dollars on Ouya." Whether or not that prediction becomes a reality is something only time will tell.

Source: <a href=http://www.theverge.com/2013/7/25/4556034/ouya-julie-uhrman-exclusive-intervew-sales-numbers>The Verge




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[Dr.Awkward]

All they need is a good, solid, killer app to push. Specifically, one that's a new IP and has kind of depth we haven't seen in years, yet the interaction is smooth and easy to work with. They'll get more interest in the older of core gamers that way.

 

[Legion]

I think the biggest problem the Ouya is going to have is that it now has a reputation for having problems. With companies such as Microsoft, Sony and Nintendo when they get a bad reputation they can spend a lot of time and money working hard to win it back, but that is considerably more difficult for a product or company that is so much smaller.

I don't think the Ouya will do great to be honest, although I wish it would (although I personally don't want one). Perhaps later versions will fix the issues, but due to the above I think it will be very difficult to change the negative perception that many have. If they did release a new version next year many will question whether or not it will be worth the risk considering the problems the first one had. If they do fix the issues with this version people will still be wary.

 

[Frostbite3789]

"I believe that by the end of the year, we'll see a few developers telling us they've made more than a million dollars on Ouya." Whether or not that prediction becomes a reality is something only time will tell.

If she talks to developers not developing for the Ouya, or who did a multiplatform release, then sure. That could be a reality. But for any game to make a million off only the Ouya? That's hilariously ludicrous. This is a console that hasn't even sold a million units.

Edit: http://techcrunch.com/2009/07/30/iphone-devs-litefree-mobile-apps-really-pay-off/

Mobile app developers wish for 8%? I think they'll take 9% gladly with a far higher install base.

Edit 2: http://www.polygon.com/2013/7/25/4557170/ouya-says-73-of-its-owners-have-yet-to-buy-a-game

I'd say this is even more telling. When you create a video game console, and 73% of your userbase hasn't even purchased a game yet, you have a problem. And that's 73% of not a very big number.

 

[JamesCoote]

I think the biggest problem the Ouya is going to have is that it now has a reputation for having problems. With companies such as Microsoft, Sony and Nintendo when they get a bad reputation they can spend a lot of time and money working hard to win it back, but that is considerably more difficult for a product or company that is so much smaller.

I don't think the Ouya will do great to be honest, although I wish it would (although I personally don't want one). Perhaps later versions will fix the issues, but due to the above I think it will be very difficult to change the negative perception that many have. If they did release a new version next year many will question whether or not it will be worth the risk considering the problems the first one had. If they do fix the issues with this version people will still be wary.

OUYA has been developed iteratively / bit by bit, whereas most people are used to just seeing the final product in a big reveal after it's been perfected in secret for years. OUYA have failed to communicate that to people

Perception has always been OUYAs biggest problem

Edit: http://techcrunch.com/2009/07/30/iphone-devs-litefree-mobile-apps-really-pay-off/

Mobile app developers wish for 8%? I think they'll take 9% gladly with a far higher install base.

That article is from 2009. It's so old in terms of the mobile market, we might as well start talking about Windows 95's dominance of the PC OS market.

This should give you a much better idea of conversion rates:

http://www.gamesbrief.com/2013/03/arpdaus-conversion-rates-and-other-new-datapoints/

In most games, 1-2% of users will pay for virtual currency. In healthy games, the conversion rate is closer to 3-6%. Few games can boast a 10% conversion rate or higher, and usually these are games that focus on a niche audience as opposed to mass market

Of course, you then have to take into account the average spend of those 1%-2% of people:

..for most games, $0.05 is a good first benchmark. Games with excellent monetization will have ARPDAUs (average return per daily active user) between $0.15 and $0.25.?

For OUYA, you're talking 8% with prices between $2 and $15 (average $5). The problem is scale. For the mobile figures, $0.05 at 2% works because you've got hundreds of millions of customers out there

 

[Something Amyss]

All they need is a good, solid, killer app to push. Specifically, one that's a new IP and has kind of depth we haven't seen in years, yet the interaction is smooth and easy to work with. They'll get more interest in the older of core gamers that way.

They might as well ask for a mermaid riding a unicorn.

I think the biggest problem the Ouya is going to have is that it now has a reputation for having problems.

Personally, I think its biggest problem is poorly filling a niche that people don't really seem to need or want. If one of the big selling points is this iffy, then there's really no point.

 

[Legion]

I think the biggest problem the Ouya is going to have is that it now has a reputation for having problems.

Personally, I think its biggest problem is poorly filling a niche that people don't really seem to need or want. If one of the big selling points is this iffy, then there's really no point.

I think that explains why it will never be a true competitor to the "big companies", but if they'd gotten the technical side down perfectly they'd be able to probably have a reasonably sized and loyal fanbase. It doesn't fill a particularly large niche, but considering it was backed so easily, clearly it does have some demand, considering people were willing to buy an entire console before it was even made.

The downside is that they have failed to impress a lot of those people, and if the people who liked the idea from the start are not happy, what chance do they have of convincing other people to gain interest?

 

[Something Amyss]

I think the biggest problem the Ouya is going to have is that it now has a reputation for having problems.

Personally, I think its biggest problem is poorly filling a niche that people don't really seem to need or want. If one of the big selling points is this iffy, then there's really no point.

I think that explains why it will never be a true competitor to the "big companies", but if they'd gotten the technical side down perfectly they'd be able to probably have a reasonably sized and loyal fanbase. It doesn't fill a particularly large niche, but considering it was backed so easily, clearly it does have some demand, considering people were willing to buy an entire console before it was even made.

The downside is that they have failed to impress a lot of those people, and if the people who liked the idea from the start are not happy, what chance do they have of convincing other people to gain interest?

The problem with the backing argument is that a lot of the backers seemed to think it was going to be something bigger than it possibly cold ever deliver. Unrealistic expectations seemed to fuel the Kickstarter, as they invariably do. I'm not sure it would have filled a niche at all, otherwise.

I'm also no particularly sure they were ever going to expand much outside their investors. Combine that with the fact that I'm pretty sure a significant chunk of the investors were bound to be disappointed, and I have trouble seeing much purpose here. I think the hardware delivered all it could on a budget that was always unrealistic.

 

[Kahani]

considering it was backed so easily, clearly it does have some demand, considering people were willing to buy an entire console before it was even made.

I think that's exactly the problem - there's a big difference between liking the sound of an idea, and actually finding an existing product useful. Demand for a concept doesn't always translate into demand for an actual product. The Kickstarter success shows there was demand for the idea of a cheap, open console, but it doesn't necessarily show that there's demand for the Ouya.