the history of video games monetization

The History of Video Games Monetization

Juan Gabriel Gomila Salas

/joanby@Joan_ByJuan Gabriel Gomila Salas

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Video Games Rock

Video Games are awesome.

Gamers

People have spent more than 30 years considering themselves gamers.

A gamer is someone who spends an embarrassing large amount of time and money

playing video games.

Gamers

I really do consider myself a gamer!

Video Games Evolution

A lot of people is intrigued by the evolution of gaming,…

Video Games Evolution

…but more than tat it is just as intriguing to reflect the evolution of video games

monetization.

So, let’s take a look at all the creative ways video game developers monetised their games over the years!

http://pocketnow.com/wp-content/uploads/2015/01/wd_in-app-purchases.jpg

Arcades

http://blog.socialnat.com/wp-content/uploads/2014/10/lolnuevo3.jpg

In the beginning, there were arcades – coin-operated machines that let you pay to play. Pong, Space Invaders, and Pac-

Man were the original favourites.

People searched under their cushions far and wide for my next quarter.


Retail Stores


Retail stores began selling consoles systems like Atari, Commodore 64 and

the original Nintendo.


Now we’re in the era of the Wii, Xbox and PS4.


First you pay for the platform (console or computer) and then you pay for the

games, which come in the form of cartridges, discs or diskettes

http://blog.socialnat.com/wp-content/uploads/2014/10/lolnuevo3.jpgRetail includes brick and mortar outlets as well as online sellers.


Downloadable Games


Originally popularized on computers, downloadable games were made

available either as a direct download or as shareware (demo).


People loved shareware.

They used to play the first level of Doom or Duke Nukem a thousand times

before buying it.


Consoles began offering downloadable games through online stores like the

Xbox Live Marketplace and the PlayStation Store.


Gamers could save themselves a trip to the store and purchase new games,

expansions or add-ons from their computers or favorite consoles.


Pawn Shops


The demand for game variety is very high, but many gamers can’t afford

purchasing all the latest and greatest games.


Pawn shops, like GameStop and EB Games, let gamers trade in their old

games for credit.

That credit could be put towards the purchase of other titles.


Rentals


If owning games wasn’t your style, rentals proved to be a popular solution.

Most video rental stores also have a video game rental section for the

budget-conscious gamer.


Another rental service is GameFly. A small monthly fee gives gamers

unlimited access to their favorite games via mail.

http://www.gamefly.com/

http://blog.socialnat.com/wp-content/uploads/2014/10/lolnuevo3.jpgOther services like GameTap and

OnLive charge a low monthly fee to access games directly via the Web.

http://www.gametap.com/

http://www.onlive.com/


Subscriptions


Over the past decade a new form of game has risen to popularity know as MMORPGs or Massively Multiplayer

Online Role Playing Games.

MMORPGs are exceptionally captivating because of how immersive the environments and communities are.


Additionally, new content is constantly being added so your “life” in the game

never really ends.


To support the massive development and hosting costs, gamers pay a

monthly subscription to maintain their membership to the game. This can be paid for via credit card or game card.


Free to Play

http://blog.socialnat.com/wp-content/uploads/2014/10/lolnuevo3.jpgFree games are exceedingly popular

because there is a low barrier to entry.


Yahoo! Games was one of the original free game portals on the Web and only

required a Yahoo account.

http://blog.socialnat.com/wp-content/uploads/2014/10/lolnuevo3.jpgThe developer’s revenue was generated from advertisements placed throughout

the gaming Web site.

http://blog.socialnat.com/wp-content/uploads/2014/10/lolnuevo3.jpgOther sites like MiniClip and

AddictingGames also provide free games and generate their revenues from

advertisements.

http://www.miniclip.com/

http://www.addictinggames.com/

http://blog.socialnat.com/wp-content/uploads/2014/10/lolnuevo3.jpgThe advertising monetization model is also used on several mobile platforms

like iOS and Android.


In Game Monetization


Popular in free-to-play and mobile games, in-game monetization allows gamers to play a video game for free, but have ways of generating revenue

from within the game itself.

Micro Transactions

In order to acquire special content (new levels, rare goods or currency) gamers

must complete a small, in-game transaction.

Micro Transactions

These micro-transactions can be made by credit card, PayPal, game card or mobile payment.

Ad-Funded Payments

Another form of in-game monetization is the ad-funded payment, created by TrialPay.

http://www.trialpay.com/

Ad-Funded Payments

Ad-funded payments give gamers the ability to buy games, memberships,

goods or virtual currency by trying or buying a product or service from one of TrialPay’s blue-chip advertising partners

(Netflix, Discover, GAP, etc.)

While gamers are eagerly awaiting the next generation of video games to hit the market, I’m excited to see what other

unique ways game developers are going to let me pay for my gaming urges.

David Perry, an industry veteran, came up with 29 business models game developers can use.

http://lsvp.wordpress.com/2008/07/02/29-business-models-for-games/

How do you see video game monetization changing in the future?

Which are the most effective monetization platforms for your company?

the history of video games monetization

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