Understanding the Transforming Revenue Models in the Games Industry

This book explores foundations of revenue models in the games industry and studies the effect of video game characteristics on market shares of games under different revenue model structures using a unique Gameopedia AS dataset and the collected market data. It finds that digitisation of markets has allowed creation of digital pay-to-play and free-to-play models on the basis of classic pay-to-play model and identifies their main differences to be in monetisation schedules market-vs-social exchange norms evoked and preferences of consumers. Its findings suggest an important insight: digitisation of revenue models allows creation of new independent markets within the same industry. The study concludes by suggesting a set a parameters for each of the above revenue models which play the key role in determining the market share of a game in a particular market.