I think he's referring to Schell's talk at DICE 2010: http://g4tv.com/videos/44277/dice-2010-design-outside-the-bo...

He mentions around the 3 min mark that lead generation generates more revenue than direct payments (and then goes on that topic for a bit).

That's cute, but Jesse Schell is entirely wrong. Users overwhelmingly prefer direct payments.

Mark Pincus talks about it here - http://markpincus.typepad.com/markpincus/2009/11/my-take-on-...

Peanut Labs backs it up with independent research - http://peanutlabsmedia.net/2009/11/02/survey-finds-arrington...

Sounds right, we watched the video and Schell actually says social games "probably" make more money from lead generation. Thanks for the links, Teej. I was really curious about that.