—TechRound does not recommend or endorse any investment, gaming, gambling or casino practices, advice, companies or operators. All articles are purely informational—
The online gaming industry is a powerhouse in the entertainment world. It has solidified its place as a de facto force, generating outsized returns far surpassing the combined earnings of the film and music industries. While generating plenty of hype, engaging players, and captivating the spotlight, the online gaming industry must be financially viable to be sustainable.
In this sense, online gaming enterprises must have business models in place. These can serve as a roadmap; a framework for generating ROI and transforming an idea into a thriving product.
While a business model is being formulated, it’s imperative to assess the viability of the game question. For example, poker is one of the few popular global attractions with near-universal appeal. Zynga Texas Hold’em is one such game that aims to deliver on expectations. This gaming platform for example offers free poker games to players worldwide. And for players looking for additional poker chips, there are options available in this Freemium model.
Subscription Service Gaming Models
Whenever a game is created with an evolving player experience, the subscription model tends to be the best fit. This is true when new content is developed, new features are added, and the storyline dynamically changes to meet the needs of the game world. This is particularly true in MMO games. Here, players are immersed in a persistent virtual realm that morphs, changes, and evolves all the time.
Subscription fees enable the game developers, creators, and distributors to generate steady revenue streams. This ensures ongoing investment and updates. Players enjoy these types of subscription-based gaming models because they know the content is continually refreshed, new worlds are waiting to be explored, and new big bosses are waiting to be defeated.
It’s also a good business model for single player games with what is known as episodic content. Here, players get access to new story chapters, or advanced levels, for subscribing to the service.
Freemium Based Business Models
Premium business models are hugely popular in the world of online gaming. We see this across the board, with games on social network networks, social casino games, and scores of other attractions. Essentially, the bedrock of this model works as follows: the core game is free.
This attracts a huge number of players to the game. So, they download the game and they play the game. It’s a great way to introduce players to the mechanics of the game, the features, functions, and overall feel of the material. In other words, players feel invested before they have even spent a cent on the game.
With a freemium business model, players have the option of in-app purchases. This means that players who spend money have the added advantage of better tools, resources, power ups, access to unique content, or elevated status in some way, shape, or form. However, this can be perceived as an unfair advantage to players who don’t pay for these benefits. When the in-app purchases offer cosmetic, superficial benefits, these elements do not affect the core mechanics of the game.
It’s important for game developers, designers, creators, and producers to consider the pros and cons of freemium business models carefully. When the right balance is struck, this model ensures a positive player experience and garners a loyal following of players who remain invested in the game.
One Time Purchase Game Model
This is an exceptional gaming model that delivers a terrific gaming experience. The one-time purchase model is associated with an exciting narrative, often a colorful arc, with exceptional world, design and immersive gameplay.
There is a single fee to pay upfront, with players having access to the entire game, with no additional payments required whatsoever. This game model bestows a feeling of accomplishment upon players. It is ideally suited to single player games with well-crafted narratives.
Play-To-Earn Business Model
This is a unique business model that incentivises players. It rewards them with NFTs or crypto for completing game levels, beating the boss, or emerging victorious in contests. It also allows for a unique economic paradigm within the game. Players earn valuable digital assets, like crypto for showcasing their skills against in-game opponents.
This also contributes to the internal game economy. As always, this type of gaming business model must be balanced to ensure fair competition and enjoyment for players.
When deciding between various business models, several key elements must be assessed. These include the long-term revenue viability of the business model, the extent of player engagement with the specific business model in question, and the play-to-earn nature of upfront purchases and how it impacts the business model.
In all instances, it’s imperative that a gaming provider, platform, or creator has a monetisation strategy in place to remain viable. The online gaming market is indeed a complex meta-verse of infinite possibilities. The business model of online gaming is one of the most important strategic decisions of any game developer.
—TechRound does not recommend or endorse any investment, gaming, gambling or casino practices, advice, companies or operators. All articles are purely informational—
