Virtual Goods Summit — Habbo Hotel, $40 Million Revenue, 185 Million Users And More

Habbo Hotel Executive VP of Business Development, Teemu Huuhtanen, delivered a great speech talking about how Habbo, which was launched the same month as the Playstation 2, has had an incredible 10 year history and is now extremely profitable.

Teemu explained that they have a teenage demographic, split 50/50 across boys and girls. Habbo has earned $40 milliion in revenue in the first half of the year, they have 185 million registered users   They have 45 million hours of game play per month by their players.

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This last year has been their most profitable, and they’ve been steadily increasing revenues since their launch in 2000.

Habbo treats its Habbo Hotel game as less of a product and more of a service. This means that they focus on continual updates and support. This also means that they are consistently watching their users, their demographics and created their 6 user personas that represent the different types of users that play Habbo Hotel. Their goal is to analyze the psychology of their players and appeal to them based on their game play movements but also their real life activity.

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Their business model is all about micropayments and VIP membership. Advertising is a secondary revenue stream, and is effective to supplement their revenues. It’s key to them to ensure that they have a lot of ways for users to pay, but Teemu feels that the number of partners will decrease but the number of methods will remain.

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Teemu explained their dual currency system, which is key for their revenues. The table below displays how their credits, which cost real money balances with the ‘pixels’ currency that is only earned.

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