Why Are Big Spenders Called Whales?

The term "whale" is used in the gaming industry to refer to high-spending players who account for a major share of revenue. Just like the marine mammals, these big fish dominate the waters and are highly valued by game makers.

A Deep Dive into the Origins

The word whale originally emerged around the early 1900s in the context of betting and gambling. According to etymology records, it was used as a slang by casino frequenters and students to describe heavyweight gamblers who placed unusually large wagers.

Over time, game developers adopted this label for big spenders who shell out tons of money on in-game purchases. For instance, Warren Zide, a former Mitarbeiter executive referred to a player who spent over $10k per month as a "Monstro Whaleus Compulsivegamblius". This usage in 2009 is one of the early documented references to whales in gaming.

Whale Spending and Behavior in Games

Whales display some common traits and patterns that differentiate them from other players:

MeasureWhale Behavior
Monthly spending per game$100-$300+ (can reach thousands)
Share of paying playersLess than 5% typically
Contribution to game revenue50-70% on average
LoyaltyHigher long-term retention

As we can see, whales form the crux of a game‘s monetization. Top mobile titles like Clash of Clans and Puzzle & Dragons gain 60-80% of sales from just 2-3% of players.

Why Whales Are Critical

Whales are extremely attractive to publishers because:

  • A few big spenders can drastically boost revenue and profits. For example, Star Wars Battlefront 2 managed to sell over 9 million copies despite the backlash over its monetization strategy – thanks mainly to whales.

  • Whales display greater loyalty and have higher lifetime values than average payers. Based on research from Swrve, whales have a 90 day retention rate of 40% compared to just 25% for non-whales.

  • Money from whales helps subsidize costs and allows games to be more generous to other players. Titles like Fortnite offer free core gameplay by concentrating monetization on cosmetics targeted at whales.

Simply put, these marine behemoths keep the gaming industry afloat just like their aquatic cousins regulate the ocean‘s ecosystem in many ways.

Tactics Game Makers Use To Catch Whales

Recognizing how crucial whales are, publishers utilize tools and tactics specifically focused on attracting and retaining these MVPs (Most Valuable Players):

Targeted Marketing

  • Personalized push notifications and special offers aimed at big spenders
  • Segmented pricing experiments to find out whales‘ willingness to pay

VIP Privileges

  • Exclusive virtual currency packages, bonuses and discounts for top players
  • Access to limited edition items and other status symbols

White Glove Service

  • Dedicated account managers to provide individualized support
  • Special customer service queues for whales

While some decry these means as exploitative, whales themselves have commented that the additional attention and content access makes them feel valued by the developer.

In Conclusion

As a long-time gamer myself, I fully understand developers needing to run profitable businesses. Whales help foot the bill and their patronage indirectly lets millions around the world enjoy games for free or at lower prices. So while their spending seems outrageous to average players, these big fish keep the gaming waters flowing for the benefit of all.

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