Wednesday, June 17, 2009

Forecasting Growth and Infrastructure

We received some bad news today... Google's AppEngine team contacted us to let us know that our "special elevated free quota" will revert back to the standard free level in a few weeks & we'll be billed for any overages. AppEngine's resources were a huge part of plan & the elevated levels were very important to seeking profitability with gpsAssassin. Now that its gone, I had to go back and run the numbers again.

Over the past week, things have settled down with our metrics. The 'pirated software' frenzy has diminished to less than 30 per day and the existing players are falling into a nice rhythm. Using resource averages over the past three days, I modeled a forecast of 10x and 100x growth.



  • Total Users: All the players that have signed up to date
  • Active AVG: Daily average of Active Players
  • Total to Active: Ratio of players that are playing at any given time
  • CPU Hours: Based on current usage, total CPU Hours used on AppEngine
  • CPU Free: Google provides 46.3 CPU Hours for free (thank you!)
  • Over / Under: Represents our demand as compared to the Free Level
  • Daily Cost: Multiplies our Over/Under CPU Hours by $0.10 per AppEngine pricing
  • Monthly Cost: Anticipates 31 days of the Daily Cost

Based on CPU usage, we're very close to paying for resources already with just a soft launch! When we go free & start promoting, I fully expect thousands of players to flock to the system - especially with the viral 'recruiting' nature of the game. Achieving a 10x growth will happen quickly, and the 100x may not take long either. We can handle $285 per month, but the $4K per month is a huge expense.

The trick to this whole equation is balancing against revenue. Unfortunately, we don't know how users will adopt our 'in-game' transactions and Offer system. This lack of clarity/knowledge puts us in a precarious 'chicken or egg' situation. At this point, we have to prepare for the expense and hope the revenue works out... Ironic since I've said "hope is not a strategy" at least 100x in my life :)

Tuesday, June 9, 2009

gpsAssassin Analysis: Week 1

As we prepared to launch gpsAssassin, I can't tell you how grateful I was for all of the generous Apple Developers that were kind enough to publish their stats and observations. To continue in the spirit of generosity, I'm going to post our stats and observations from time to time.

Time line info:

05/08/09 - Submitted to App Store
** Note: We saw an apple tester create an account within 8 days and play for approximately 5 minutes. We know it was Apple because we entered their latitude and longitude on Google Maps - revealing their location to be Apple Headquarters :) After the initial review, we saw no further activity until we were approved.



06/04/09 - App Approved
** We made a rookie mistake and had the 'release' date set to May 31st when we initially submitted. Based on external feedback, we thought the app would be reviewed within a week and felt the 31st gave us plenty of time to prepare for launch. Unfortunately, it was approved on June 4th and since our release date was in the past, it became immediately available for download. LUCKILY, we set the initial price at $4.99 and that discouraged the masses from downloading the app before it was 100% ready.

06/05/09 - First Sales from our Beta Testers
** Our beta testers helped us clock our first sales and test the store-delivered application. BETA TESTERS ARE CRUCIAL to your success. Not only did they help us develop the game, they also helped us find hundreds of bugs. Its been a week and the beta tester are still reporting bugs - which is great since most unknown users won't give you a chance to fix and will only give you a bad rating.

06/07/09 - According to Flurry, New Users surpass 150+ by Noon
** At first, you want to believe that your application is so amazing that everyone and their brother is talking about it - thus driving new sales. But after a deep breath, you realize that going from 10 sales the day prior to 30+ sales per hour indicates something else. We were watching the data and it seemed new users were popping up in Europe, Africa, Asia, Canada, South America, and Australia. It was then that we knew we were hacked.

By that evening, we had surpassed 600 new users - far exceeding the number of sales we were showing in the iTunes data portal. Our efforts to scan the web paid off and we found the app was hacked and released. The irony: We planned on reducing the application to 'free' within the next 2 weeks - after we had enough time to clean up the app for the masses. So in this scenario, the pirating community actually helped us spread the app like wildfire - something future Developers may want to consider.

06/09/09 - Here's what the data tells us

Day-over-Day Growth (as compared to previous day)






** While not precise, I can infer that hacked software is most desirable the day it is released and then quickly tapers off. I'm guessing it will continue its rapid decrease until the pirated versions only represent a handful of new users per day. If we gain mainstream popularity or media coverage, the pirated copies may increase accordingly.

Market Research for our 'Free Version'
** Since day one, our plan has been to release gpsAssassin as 'free' and monetize through in-game transactions & related in-game marketing/advertising. The $4.99 price was temporary and allowed us to collect revenue for a launch party. Surprisingly, some people still bought the app and we were able to watch their game play for the first two days. Their gameplay was similar to the other beta players in terms of frequency and length. In contrast, the usage profile for the players of the pirated version was much different.






Players who purchase the game want to play it a lot - thus the average user playing 9.24 times per day. Paying money increases loyalty/intensity of gameplay. In contrast, the player-session averages dropped dramatically once it was hacked/free. HOWEVER, its interesting to note that it levels off around 4x per day. After months of testing, our beta testers maintained a daily session average of 4.64. This leads me to believe that despite the significant drop in active users, by day 3 the free/hacked players were already playing the game at a normal pace.

In summary, it seems that the price of your app will directly affect the number of long term players you capture (common sense). Players that pay are much more likely to become loyal and will show an intense initial game play. Free players aren't vested in the app, so you'll see many of them abandon the app before they become loyal. However, once a player becomes engaged - it seems that free vs. paid doesn't matter. Common sense would indicate that all engaged players simply judge the app on its merits once they surpass the initial 'try out' period.

Other Observations
** To me, the most fascinating part of the 'hack' version is that now we have seed-groups in foreign countries. Our application is social and relies heavily on 'seeding' new areas to gain foothold. Marketing in countries like the UK, China, or Japan would have been cost prohibited. Now, with the hacked version in the wild, we have seed groups on every continent. This trend may continue once we make the app free.

Another observation relates to the psychology of success. Inevitably, people will ask you how your application is doing. Most, if not all, want to know how many times it has been downloaded. The subject of money is often taboo, so you'll rarely (if ever) have someone ask you how much money you've made. Since downloads are often the benchmark of success, a hacked version of your application can bode well for you.

We've laaaaaaunched :)

Wow - the last few days have been exciting :) After waiting for weeks (and weeks) for Apple to review, you can imagine our surprise to learn that our app was approved and instantly in the store. This caught us by surprise and given the nature of our game, we had a lot of clean up work to do immediately. The game was still showing special notes to Apple & 15 people had already bought it!!!

Over the past week, we've been working furiously to clean up the last remaining pieces and are preparing for our promotional blitz. Since day 1, we've been hyper-focused on the feedback from our players and the new (non-beta) players didn't disappoint. Their feedback, plus the clean up efforts, mean that we won't be massively promoting for at least another week :)

There has been one interesting revelation... it took approximately 24 hours for the game to be hacked and distributed via the underground software scene :) On Sunday, we were shocked to see our 'new users' spike by 400! Since then, we've been adding 100+ consistently per day thanks to the awesome efforts of the pirates. The irony is that we're dropping the software to free within 2 weeks. If we had released as free, then I doubt the pirates would have even been interested... AWESOME!

Friday, June 5, 2009

Two Great Articles from Local Bloggers

Two local journalists (and players of the game, might I add) wrote great blog articles about gpsAssassin THE SAME DAY IT WAS APPROVED. Whew, I love Nashville's Interactive Community - we have the best people in the world, hands down.

Tom Cheradar's Article + Excerpt
... In the meantime, go to the iTunes Store’s gpsAssassin page and inflict some murderous review love if you’ve enjoyed playing the game. If you aren’t the reviewing type, then just marvel at the fishwreck screen shot (or else).


Nate Baker's Article + Excerpt
... For the over 50 beta testers and numerous contributors to the game, killing neighbors cultivated a community which fed the game’s development.



Enjoy!