Video game monetization

Video Game Monetization is the process by which a video game product returns money for those involved in its creation or copyright ownership. Exact methods of monetization may vary between games; with noticeable differences in methodology occurring most often between games of different genres and platforms. Additionally, these methods may affect a game’s development, influencing design decisions based on their likelihood to contribute to the game’s financial success.

There can be more than 20 ways for the game monetization, and some can be combined to create new business models. Here are some of the methods based on the general classification.

Retail purchase is the traditional method by which games are sold from brick and mortar stores. Customers pay for a physical copy of the game and any other game related peripheral devices required for play in-store. Retail purchasing has previously made up the bulk of game-related transactions, however in recent years, it has been on the decline in favor of digital downloads.

In-game microtransactions are when aspects of a game’s contents can be purchased by players with the goal of enhancing their experience with the game. These can range from new forms of playable content, in-game currencies, cosmetic options, and otherwise unavailable or restricted gameplay advantages. Traditionally, these purchases tend to be relatively inexpensive but numerous in variety. Microtransactions are often common in social and mobile games where potential customers may be hesitant to purchase a full game, but more at ease with smaller, yet more numerous payments.

Digital download is similar in practice to retail purchasing, but is different in venue. Instead of acquiring a game through a physical store, customers buy their games online and download the game’s data directly to their computer/console/other storage format. Many games sold through digital download are distributed by means of a third-party service that functions in the same way as a physical store; selling a variety of games from many different developers in one location.

Subscription models are when a game requires continuous, ongoing payment from a customer in order for them to play a game. Games that utilize subscriptions often sell access in blocks of one-month increments or in multiples thereof. Once a subscription runs out or is canceled by a customer, their access to the game ceases or is reduced until they re-subscribe. This method is most often associated with games that require an online connection or service that requires capital to operate on the part of the publisher or developer.

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Wikipedia