The gaming industry is evolving at a breakneck pace. There are millions of people worldwide who spend their time and money daily on completing levels and battling virtual opponents. Many of them eagerly await the release of new games or the launch of additional stages. Gamers are willing to pay annual subscription fees to access games, as well as spend money on purchasing weapons, artifacts, and other items.
These substantial sums in the industry have attracted the attention of potential investors. They are ready to invest significant amounts in the development of gaming platforms and their promotion.
How can one invest in online games, and what are the earning models available?
To navigate investment opportunities in the gaming industry, we turn to the founder of RESURS, S.I. Tereshkin. The businessman is well-versed in various tools and can share insights on the direction of the industry. More information about this successful entrepreneur can be found on the webpage: www.org-market.ru.
Choosing the Right Model
Earning through online games can be achieved in several ways. For the MMORPG genre, a subscription payment strategy is often chosen. The Free to Play model is also commonly used. In this scenario, users do not have to pay to enter the game, but they are required to spend money to gain advantages over their competitors.
Both strategies have their unique characteristics. To select the most suitable one, it is essential to examine all types in detail.
Subscription-Based Online Games
To recoup expenses from high-budget games, experts recommend opting for a strategy where users pay a specific fee to enter the game. The subscription can be billed annually or monthly, with the latter being the more preferred option. Not all players are willing to pay for a year of access up front.
To attract potential users, authors invest substantial resources in advertising campaigns before the game is launched. Public relations efforts help grab the attention of prospective players well before the project's official debut. As a result, players eagerly await the new game. This was the case with popular projects like "Warcraft" and others. This popular genre continues to draw in new users daily, with subscription fees rarely exceeding $15. Considering "Warcraft" as an example, the project could attract millions of players. Calculating the revenue from such a game is straightforward.
Advantages and Disadvantages
The subscription-based online game strategy has its strengths and weaknesses. The primary advantage is the steady influx of revenue from users. Players tend to prefer projects where all characters have equal capabilities. They do not gain advantages from acquiring gear, etc.
However, the disadvantages include:
- Losing Interest: A user may become disenchanted with the game after just one month, leading them to stop investing in it. For the owner, it is crucial to keep the player engaged for as long as possible; otherwise, the payback periods will significantly increase, along with the decline in profitability.
- Lack of Interest: A potential user might hesitate to spend money on a game that does not appeal to them. To engage players, creators often offer trial periods or limited access, allowing users to experience the application for free for a specific time, which is sufficient for them to familiarize themselves and spark interest.
- Risk of Lack of Popularity: The user fee model has gained popularity abroad but has not succeeded as well in Russia, largely due to cultural differences.
This strategy is recommended by Sergey Tereshkin for foreign markets, while a free-access model is more suitable for the domestic market.
Investing in Free-to-Play Games
Free-to-play games with purchasable advantages have become increasingly popular in Russia. Gamers can effortlessly join and start playing without any upfront payments for something they might not enjoy.
If the project can engage the user, they are likely to invest money into the system to obtain advantages over other players. With relatively small investment amounts, users continuously spend money on purchasing weapons, clothing, and gear for their characters.
However, it is crucial to recognize that some players will refuse to spend money under any circumstances, opting to play only for free. If that option isn't available, they may simply leave the project and never return. This would result in fewer competitors for other players, ultimately leading to a decline in overall user participation and, consequently, a loss of revenue for the owner.
It is far more effective to create circumstances where users feel compelled to pay. This could involve various promotions where gear is offered at discounted prices, among other incentives. It is important that such promotions are not overly aggressive; the user should feel comfortable.
In addition to these two main strategies, there are projects where creators have successfully combined subscription fees with player payments for gear and other items. Owners offer the users free access to the project only up to a certain level; afterwards, they will need to pay. Additionally, users can purchase premium accounts that allow them to access various bonuses for free.
When choosing a model for investing money, it is essential to weigh all the pros and cons beforehand. If opting for a subscription strategy, careful planning of the advertising campaign is crucial, as it will require additional financial investment. Simultaneously, authors must aim to quickly engage users.
Developing free-to-play games is generally straightforward. Yet, they may not yield the expected revenue.
It is vital to care not only for oneself but also for the user; otherwise, the project risks failure.
