The term "Whale" is borrowed from the casino industry, where it is used to describe a rich gambler who bets extraordinarily large amounts of money. Just like in the game industry, casinos want to "catch" the most high-betting whales, because they provide a lot of income for comparably little expense.
There is a big difference with any casino online or in a street where you have to spend money before being able to play it.
With a F2P game professionals have thought about the best way to tempt gamers to spend some money while playing, alone, with friends or after having contact with friends on social media.
I presume a low threshold aimed at the one that is new to throwing in a dollar/euro works better than a large sum. Imo you'd want the masses to throw in some bucks, and keep a part of them throwing in money on a regular basis.
Gacha games are mostly financed by so called whales [. . .] The others can enjoy a free/cheap game (at least in the case of Genshin).
So how big is that group of whales and the one enjoying a free/cheap game?
I have read articles saying the people paying are just 1-6% of all players, which is imo ridiculously low (and they have never given a link to any study, afaik), and that Wikipedia page @Andrew32 is referring to mentions
"whales" which typically are the smallest segment, up to around 10% of players, but are willing to spend the most on a game; "dolphins" which represent a larger portion of around 40% of players who spend some money but not as much as whales; and "minnows", representing about half the population, who spend the barest amount to maintain activity.[35]
But these numbers are from 2011:
Note 35, leads to Gamebrief:
Modelling the freemium power-law
For the purposes of this spreadsheet, I split your gamers into three groups:
. Minnows spend the smallest amount possible in a month, typically $1
. Dolphins spend a "middling" amount. Typically I forecast they spend an average of $5 per month
. Whales spend a lot. Typically I forecast they spend an average of $20 per month.
. Freeloaders (see Whales, power-laws and the future of media) are, of course, the fourth group. They are covered by the conversion rate and not considered here)
For more details on ARPPU, see the separate post on this topic - ARPPU in freemium games.
My starting point for what percentage of your users fit in which bucket is:
Minnows: 50% of payers
Dolphins: 40% of payers
Whales: 10% of payers
Note that this is an approximation of the shape of the power law. You can change the percentages and change the ARPPUs as you like.
Btw ARPPU = Average Revenue Per Paying User
So these numbers, of 2011 - more than a decade ago - and these numbers are a "forecast", an "approximation".
Is that still true in recent days and how much do these seperate groups spend?
I have been looking for the most recent figures and found
this study of Top Dollar, April 2020, about The Spending Habits of MMO Gamers
Most MMO games allow in-game spending, meaning players can swap their real world money for virtual currency, special abilities, clothing, or even virtual vehicles and property for their characters. But how much money do they usually spend, what games are they spending in and what payment methods do they use? We surveyed 1,000 gamers across America to find out.
Over 60% of poll participants identified themselves as men and 37.9% as women. The average respondent was 32 years of age and reported spending three to six hours playing MMO games per day. Almost 90% said they have spent money on in-game purchases for MMO games, spending an average of $229 each in total.
So a mere 10.6% spends $0.
A third, 28.8%, spends at least $250.
Almost half of the gamers (48.8%) spends $101 or more.
69% spends at least $51 dollars.
Only 15.9% spends less than $10.
Some game types encourage more spending than others. Online battle arena, role-playing and combat games all draw heavy spending through in-game purchases.
Game creators obviously know a thing or two about marketing and designing their games to encourage spending; the majority of our respondents believe they have to spend to remain competitive.