Tuesday, February 17, 2015

Video Game Monetization Model

In order for game developers to make money for their games, they have to come up with a monetization strategy that would not only benefit them, but make sure that the consumer would end up enjoying.

There are many different strategies involving utilizing the monetization strategy. Game developers can decide to have trials, time fees, ads/ad free, free-to-play(F2P), premium, micro-transaction, downloadable content(DLC), and episodic release. Each of these models or strategy have a purpose behind them and they have to be used properly for a developers game in order to make a profit.

Trials and time fees could fall within the same strategy involving the monetization strategy. Game developers would release a game and it would only be a trial where the players are limited to how far they can play the game. After getting to that point, there would be a fee established where the players can pay to continue on or not pay in which they wouldn't be able to continue on. With this strategy, developers allows the players to play the game to a certain point and if they enjoyed it, they can pay to have the full version to further continue playing.

In order to get money for games, developers allows advertisements to be broadcast within their game. These advertisements can be pop-ups of a product or idea, a video that pauses the game, or even within the game such as in the background. Developers and also promoters can get profit just by having ads. This is commonly and largely seen in mobile apps. There are apps that would require you to pay a monthly fee in order to make the app add free like Pandora or a game that makes you pay a one time fee to have no adds like Pocket Heroes.

Image result for pandora                                                          Image result for pocket heroes

Developers can market their games as either free-to-play or pay-to-play. This strategy is commonly seen within online games MMORPGs. F2P games would be available to the players for free and there'll be in-game purchases within the game. These in-game purchases usually consists of purchasing items, in-game currency, or features. There'll be times where the game wants you to pay for some features that needs to be unlocked. For a pay-to-play game, it consists of a a players paying money in order to play a game or a subscription fee. This can be either having to pay a one time fee, monthly fee, or even annual fee.

Image result for smite Image result for league of legends Image result for ff14 a realm reborn


DLC are separate game purchases that allows the player to buy various things. DLC can come in forms of being an extension to the main game, having more maps, outfits/costumes, exclusive weapons and armors, and other features to expand the game. These DLC are sold both separately or in a bundle. The cost of DLC all depends on what the publisher or producers want to market out and charge the players. There are times where a game's DLC can have an impact on the main game itself. This can be seen in the game Mass Effect. Mass Effect has numerous DLCs where the player plays a story not available in the main game and once they return to the main game, they'll have access to exclusive weapons or suits.

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Games released in forms of episodes are becoming popular. Telltale's The Walking Dead, The Wolf Among Us, and the newly released Game of Thrones started this episodic releases of the game. This method involves a release of the first episode of the game and then after that episode comes to an end, the player needs to wait for the next episode to come out so they can continue playing, To continue playing, players are charged money in order to buy the next episode. After a while once all the episodes are released, there'll be a release of the full game with all the episodes available within a certain season. The game can continue on to season 2 in which case the same process of episode availability and release will repeat.

Image result for telltale games

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