Understanding the Transforming Revenue Models in the Games Industry
An econometric search for parameters determining the market success of video games with various revenue models
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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: digitisat...
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.
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