Gaming industry, which is now one of the biggest sectors of entertainment, initiated back in the beginning of the internet in the 1970s. The earliest online games were such formats as MUDs, which were created during that decade and held initially to an internal network before connecting to ARPANet in 1980.
In today’s gaming world, developers have to attract players in a highly competitive market. According to a recent study, the average attention span has decreased to 8.25 seconds. Almost every game is dependent on the number of players. This is why games try to keep players entertained for years, with the average gamer playing for over 10 hours per week. Game studios such as Unibet continue to keep the players around, making it easy for new ones to pick the game up and start playing with friends.
The last couple of years has seen the growth of a new trend – free-to-play online video games. The term 'free-to-play' simply refers to games that users can play without necessarily paying any money, thus making them accessible to the broadest possible audience. One might believe that the gaming industry as a whole isn’t generating revenuefrom these types of games, since it is entirely free to register and play these games.
If it’s free, then who is paying for it?
The free-to-play model has been affirmed to be one of the most profitable types of gaming models in the modern age. After all, there is no such thing as ‘free lunch.’ The free-to-play model initially starts with users trying out new games. Usually, a new game requires strategy and even the effects in the games matter. Users get a good chance to try out new games without investing their own money. Therefore, eliminating the fear of losing money and allowing an excitement rush as they play free games and test ones they like. So the question here is, how does the gaming industry benefit from this?
Most of the gaming industry’s revenue comes from micro-transaction. It allows gamers and spectators to make in-game purchases of items with real money. The most familiar in-game items include clothes, jewelry, weapons, cars and other paraphernalia such as outfits and skins. However, most online games are now shifting to the free-to-play model, with this trend on the rise, targeting thousands of dollars through in-game items.
Does that mean a win-win situation for gaming studios and players?
In a few words, there are two different models used by games. One of them is the click model. This is where the game company is paid by advertisers, only when someone clicks their ad. On the flip side, other games use a pay-per-view model. The main difference is that, with this model, the game company is paid every time someone sees (and not clicks) the ad. These two models are by far the best for games that have a noticeable following base. At the same time, many games offer their players the chance to remove ads with a little bit of money.
Contrary to console game developers that mainly make revenue through selling the game itself, the revenue of free-to-play and mobile games is solely based on microtransactions.
To widen the competitive experience, a larger pool of players provided entry into the game. As a result, the players who are paying are more likely to find opponents within their skill range and are more likely to be satisfied by the game and continue playing and purchasing microtransactions.
