Sunday, April 21, 2024

Game Monetization: The Billion-dollar Revenue Stream

If you’re going to be making a game, knowing what monetization system you’ll be using is likely one of your primary concerns. Gaming as a whole could still be considered a niche industry by most people, yet there’s no doubt there’s a lot of money within it, and we’re not even talking about the machines that games get played on. You could earn from one-time payments, or in-app purchases, typically with regards to mobile, free-to-play games.

Picture this: when you get something for free, you might wonder how someone could afford to offer it to you at no cost. Optional purchases are typically how the lights are kept on, as you might reasonably expect. In Niko Partners’ whitepaper – Access For All: Expanding Opportunities for Players and Publishers Worldwide, in collaboration with Coda – the numbers are clear: Southeast Asia’s mobile game market alone – consisting of Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam – generated $5.8 billion in revenue in 2023.

Putting aside the channels through which these purchases were made, these billions were coming from 286 million gamers within the aforementioned regions. Another thing to note is that the figures are from mobile games, leaving out home consoles – the PlayStations, Xboxes, Nintendo Switches – and PC.

From the numbers, it’s pretty clear that people will be willing to shell out good money for their mobile games. That said, you can’t expect to use this monetization system for any old game and expect to enjoy your share of the billion-dollar pie. You could even launch and simultaneously announce the impending end-of-service of your title, so the road to riches is hardly an easy one.

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