How Do Games Earn: Game creation relies heavily on revenue generation from multiple sources; here we explore current game revenue models.
Table of Contents
Free-to-Play (F2P) model
Free-to-Play (F2P) is a common online revenue model. This model offers free game download and play. The game developer generates revenue by offering in-game items and bonuses that players can purchase using real money.
How do Games earn: The items or bonuses could be anything from weapons, skins, upgrades, or special powers. This plan works if the creator can make a game that promotes in-game spending.
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Another common game revenue model is membership. Users pay daily, regularly, or annually to view the game’s content. MMOs with paid content use this model.
Apps make money by updating with new content to keep players interested.
Pay-to-Play (P2P) model
Pay-to-Play (P2P) games demand a one-time sum. The F2P model has replaced this early play model. Console and PC games use this model. The game’s content must justify the one-time pay for this plan to work.
In-App Purchases (IAP) model
IAP (In-App Purchases) models operate similarly to Free-to-Play models; however, instead of providing in-game goods or perks in exchange for payment in-app, game creators offer access to new stages or features by paying directly.
How Games Earn: This model is popular among mobile game players who make purchases to enhance their gameplay experience. This plan works if the creator can create a game which encourages in-app payments.
Advertising models provide another monetization approach game developers can employ. In this model, advertisements are shown during gameplay to generate revenue by charging advertisers for the ads displayed.
How Games Earn: For this model to succeed, success hinges upon developers being able to find an equilibrium between ads and gameplay experience; too many ads may turn players off from participating.
Monetization is crucial to game creation. A game’s success relies on the developer’s revenue plan choice. The models above are just a few of the many game revenue models available to creators today. Developers should choose a model that suits their game and public, as no single model works for all games.
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