The traditional model of purchasing video games with a one-time upfront cost is dying out. But, whether it’s an industry-led decision (e.g., to make more money via microtransactions) or demand-led (people enjoy free games) is yet to be seen. Upon the pricey release of GTA VI might be when we find out.
The dominance of “games as a service”
The Games as a Service (GaaS) model is the best way to define games that are designed for long-term engagement through regular content updates and ongoing monetization. For the past ten years, Fortnite has dominated, meaning that the number one game for an entire generation of players has been a single game. Compare this to Millennials, for example, where the top-selling game not only changed every year, but also evolved and improved each year.
Having less room for graphics and mechanics innovation may well be a part of the story, but microtransactions are usually to blame. In 2022, free-to-play revenue made up the majority of total games revenue, with some reports claiming it was as high as 85% of all gaming revenue.
We can also see this reflected in the rise in looking for the best high roller casino bonus. A high roller bonus casino is initially low cost, but you spend money over time, gradually. A high roller bonus is a reward for playing frequently and buying into the experience, and the same goes for Battle Passes, which are now a staple of video game revenue.
Of course, subscription services like Xbox Game Pass are also playing a role, in which players feel that a monthly fee makes gaming feel “free”, as they can access a large library of games. Last year, over half of gamers were subscribed to at least one service.
A generation accustomed to free access
Gen Z has grown up in a time where not only are games often free, but the best, top-ranking games are. This, then, poses an interesting question about GTA, which is considered the most successful gaming franchise. GTA V was launched in 2013, meaning almost nobody from Gen Z purchased it upon release. Though many are eagerly awaiting the game, it will be interesting to see the reaction from this generation to the expected price tag of at least $80 (between 4 to 8 months’ worth of Xbox Game Pass). Of course GTA VI will sell, but will there be a demographic divide driven by the price tag?
But, making the game cheap with a focus on in-game spending will not be popular for millennials, who have been left without many major AAA releases in recent years.
The future of game ownership
The move towards F2P and subscription models is undeniable. The outright purchase of games is unlikely to disappear entirely, particularly for indie games. For large-scale, high-production games, a high sale price can secure a return, but these games are now few and far between. Whether it’s by design or demand is difficult to pinpoint, but it’s now been a decade (almost an entire generation) since Fortnite and other F2Ps have dominated the charts. The rise of free social casinos, too, shows that some people just want to play for free…
