Gaming in Gold: The Future of Online Game Monetisation

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Monetisation in online games has gone through many forms over the years. Some are sold like regular retail games, while others are free with in-game stores for cosmetics. Check out our article to learn more about the various models and the future of game monetisation.

Buy-to-Play

Many online games use a model similar to offline ones, where someone buys a copy and now has access to the full game. Sometimes players also need to buy a new console, though most gaming devices are now backwards-compatible and can play games from decades ago. Here are the most popular buy-to-play online games:

• Overwatch
• Black Desert
• Ark: Survival Evolved

Even regular single-player games often have online multiplayer modes, and those are often buy-to-play. Furthermore, an overview of recently launched casinos shows that both casino games and video games are now almost entirely digital. People go to storefronts like Steam and download games directly to their devices instead of buying physical discs and cartridges.

DLC and Pre-Orders

Online gaming business models also often use DLCs and pre-orders to earn extra cash before and after a game’s release. Pre-orders usually give players access to the game days before the official release date, or they might get an exclusive skin. Meanwhile, DLCs can be more substantial and include:

• New character costumes
• New playable characters
• Additional story and levels
• Extra costumes
• Artbooks and soundtracks

DLCs generally enhance an existing game, and titles like Anno 117: Pax Romana reveal their DLC plans in advance. However, some people dislike excessive DLC, as it makes the game feel unfinished and can significantly increase the game’s total cost. That’s why developers will sometimes look for other forms of monetisation.

Subscription-Based

Some games receive constant support and updates, which is why they also often require more funds than you can get from one-time purchases. Subscription-based models are a common form of monetisation in online games, requiring players to pay a monthly fee to access the game. Some of the most popular MMOs include:

• World of Warcraft
• Final Fantasy XIV
• Star Wars: The Old Republic
• Elder Scrolls Online

Many games allow players to subscribe for up to a year, so they don’t have to pay every month. These games served as early live-service titles with expansions adding new content. While this model persists, most subscription games have shifted to buy-to-play or free-to-play models and use other forms of monetisation.

Game Pass

A modern offshoot of the subscription model is game passes. By paying a fee, players get access to a selection of games, including some of the most popular titles like God of War and niche titles like Scarlet Nexus. Currently, there are Xbox Game Pass Ultimate and PlayStation Plus Extra.

Free-To-Play

The future of game monetisation seems to favour the free-to-play model as many modern games use it. These titles can be downloaded and played without paying up front or regularly. While they used to be primarily flash browser games, developers have produced titles that rival AAA games. Some of them include:

• Marvel Rivals
• Warframe
• Fortnite
• Elsword

These games often have a variety of ways to earn revenue, sometimes combining multiple methods. One such method is in-game stores, which allow players to buy cosmetics or items that can help them progress through the game. Some games also have advertisements with small rewards for watching them. 

Gacha and Loot Boxes

The business models for free-to-play games have changed drastically. Many popular free mobile games now use gacha, where players use in-game currency to roll for characters and weapons, with random prizes every time. They can also spend money to buy more rolls or skins from the in-game store directly. Here are some popular games using this model:

• Battle Cats
• Granblue Fantasy
• Genshin Impact
• Fate Grand/Order

Other games instead use loot boxes. Players can earn them through in-game challenges and buy them directly. Similar to gacha games, loot boxes offer random prizes, and duplicates typically award in-game currency that can be used to buy cosmetics. 

However, some people are concerned that this form of monetisation in online games could lead to children developing a gambling addiction. That’s why the ABSG advised the UKGC to age-gate or remove loot boxes from games for children.

Crowdfunding and Early Access

While larger developers work with publishers to secure initial funding, indie developers often rely on crowdfunding. Backers usually receive various benefits for supporting the game, such as access to concept art or merchandise. Some of the most popular indie games were crowdfunded, with hit titles like:

• Undertale
• Shovel Knight
• Darkest Dungeon
• Pillars of Eternity

Many crowdfunded games also have early access versions, which are similar to demo modes. Some early-access games may be buy-to-play, so they can also use other models for additional funding while the title is still in development. Crowdfunded games also receive direct player feedback, which can help improve the final product.

Future of Gaming Monetisation

It might seem like almost every type of monetisation has been used, but other online gaming business models remain underused. For example, some developers now have their own digital storefronts for launching games or buying cosmetics and DLC. That helps them get higher revenue, as they would otherwise have to give storefronts like Steam a cut. Some of the more well-known storefronts include:

• EA Play
• Ubisoft Connect

Meanwhile, other developers are working on less intrusive ads and personalised marketing strategies. Players are also more wary of predatory practices like overreliance on DLC or scam crowdfunding, so future efforts will have to focus on greater transparency and will likely be more about direct, up-front purchases.