Profitability of video games: existing models and prospects

Making a game profitable is far from simple for publishers. The balance between commercial obligations, player enjoyment and fairness is a complicated one.

Here's an overview of the business models that currently exist, along with some ideas on how to improve player satisfaction while maintaining an attractive profit margin.

F2P vs premium

This is the most common distinction. A premium game has to be paid for. The publisher is paid for each purchase. To be sustainable, this model requires a constant influx of new players.

A free game (F2P or Free to Play) costs the player nothing. The return is made after the fact, through advertising or in-game purchases.

This model is sometimes criticised by gamers because it can spoil the gaming experience. On the other hand, it offers strong retention power: each player can be encouraged to spend money in-game over an extended period.

Some publishers, such as https://www.ea.com and Ubisoft, have opted for a subscription model that allows access to all or part of their catalogue.

It's a hybrid model where you don't pay for a particular game. It's attractive for the player, but the publisher needs to have a substantial catalogue for this model to be profitable.

Pay-per-play: an exclusive model chosen by online casinos

Finally, online casino games are generally pay-per-play. It is possible to try out certain games for free, but players must fund their account to try and win cash prizes.

For example, players who go to casinodays.com/en-ca can try out slot machines such as Book of the Dead, Piggy Riches or What the Fox for free. On the other hand, live games such as Speed Roulette or Amsterdam Blackjack do not have a demo mode: you have to pay to access the table.

Making free games profitable: advertising, in-game purchases, additional content

The business model for F2P games most often revolves around advertising or additional purchases. In the first case, players watch an ad before or after a game. The publisher is paid according to the number of views or downloads.

Additional purchases can be cosmetic (they have no influence on the game), as is the case at https://www.leagueoflegends.com/, or they can unlock content to move through the game faster.

Microtransactions are highly lucrative for publishers, but decried because they quickly turn the game into a P2W (Pay to Win) if they offer an advantage over other players.

Finally, some titles offer additional content for sale. The problem is that some publishers have no qualms about offering a game that is not complete in order to force players to buy expansions.

What can be done to improve the gaming experience and profitability?

Organising online tournaments

At present, online tournaments such as those listed on https://fr.egamersworld.com/lol/events are organised by third-party companies.

It would be conceivable for a trading card game publisher to set up its own paid events, enabling the designer and players to be remunerated with minimal investment.

Product placement

This is a practice that already exists for some major titles, but could become more widespread. The publisher receives remuneration in exchange for placing a virtual product in the game world.

However, this type of income is not fixed and is difficult to establish on certain titles. What's more, it is open to abuse.

The profitability of a game depends essentially on its popularity, whatever the model chosen. To make the experience as enjoyable as possible, you need to diversify your sources of revenue. Otherwise, it will lead to frustration on the part of the player. They will not hesitate to voice their dissatisfaction online, which will exacerbate the loss of popularity of the title.