Financial projection and monetization for a Free-to-Play Game

Abstract

This thesis is written as a project for a commissioning company. As the company is producing an online game for smartphones, there is a need for financial projections and calculations to show if the game is as profitable as expected or not.

The theoretical basis for this task is the accounting knowledge the author has acquired during the studies. The research method for this study is qualitative research using primary and secondary data.

The thesis’s tasks include the search for information related to free-to –play games, financial targets chosen and calculations for numbers of users, costs, payback period and pricing for the game.

The main outcome of this thesis is an Excel template for the company. The calculations show that the game is profitable and all the goals set are realistic; therefore, it is worth producing the game.

As the game production is just at the beginning stage, all the numbers for calculations are predictions. Therefore,it is recommended that after the soft launch, the company can base on the customers’ reactions and modify the calculations if needed.