Introducing the key revenue models that created more money-making opportunities for users has attracted legitimate gamers to join the gaming industry in huge numbers.
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The video game market has reached $347 billion in 2022, promising a compound annual growth rate of 12.9% by 2030. The reason behind the rapid growth of the gaming industry is its rising popularity.
On this post, let's discuss these key revenue models in the gaming industry to have a clear idea of this.
8 Key Revenue Models in the Gaming Industry
- In-Game Purchases
The in-game purchases have become a prevalent revenue model in the gaming industry. In this model, the game publishers allow players to download the game for free.
However, they charge for additional gaming features such as recurring game subscriptions or skins for a new character. This revenue model gives the player a wide range of content and gaming experiences to compel the players to keep coming back.
- Consumables And Cosmetics
Consumables are also known as in-game purchases, which a player can use while playing the game. In-game purchases like extra lives, ammunition for an in-game weapon, etc.
This revenue model benefits the game developers as it encourages a player to purchase the consumables more and more when they are finished.
Cosmetics are upgraded regularly to attract the players to purchase them as soon as the previous ones are outdated. The costumes, hats, and face-lifts are a few examples of cosmetics that can benefit game developers to a great extent.
- In-Game Advertising
The in-game advertising model uses the ad-display method that can be found inside a game. Brands can reach the players easily with this method. The gaming environment offers a unique way of displaying ads to align with the gaming lifestyle easily.
- Playable Ads
Playable Ads can be implemented in different ways. Sometimes, a player is allowed to access a limited version of a game for free, which usually features an opening sequence, first level, or a tutorial about the game itself.
You can also find a different model that offers a demo version of a game that expires after playing for a certain period. Some companies also use a video game link that allows a player to download the game. There are several options for this revenue model, which can be used to monetize a game.
- The Vintage Paid Model
This is a popular vintage revenue model, where players pay a one-time fee to access the full game. This monetization model benefits the publishers as they can regain their investment to make a profit from their games.
However, it is difficult to convince the players to buy the full version of the game. Also, players can lose interest if they do not get new game updates or content releases.
- Subscription Model
In recent years, the subscription model has become popular due to the success of massively multiplayer online games. This model benefits both the game developers and the players.
This revenue model is steadier than most of the other models as it can be used to make long-term investments in the game. Players can get regular updates and new content releases for an inclusive gaming experience.
- Referrals And Rewards
Referral and Rewards are a few popular revenue models in the online gaming industry that encourage people to join more in numbers. The gaming portals have created revenue opportunities for their existing users with referral codes. They can refer their friends and invite them to join the gaming portal to win rewards.
For example, those who want to earn with referral codes can explore gaming apps like Tiranga Games. You can invite friends to win big at Tiranga Game for every joining, ensuring a permanent commission from this gaming portal.
- Sponsorship Revenue Model
The sponsorship model has gained popularity over time. The brand pays a game developer to get featured in a popular game. It can be a logo promotion on the game’s menu, where the logo appears frequently, or a clickable link redirecting the user to their website.
Free-to-play games use this revenue model to become popular among users.
Key Revenue Models in the Gaming Industry – Take Away
Game publishers use different key revenue models in the gaming industry to attract players to the gaming portals. They upgrade the game to create more fantasy among the players. This not only raises the game’s level but also makes the game more accessible.
